human
What is the difference between a "short sale" and a "foreclosure?"
assistant
A short sale occurs when a lender agrees to accept less than the full amount owed on a mortgage in order to avoid foreclosure. This allows the borrower to sell their home for less than what is still owed on the loan, which can help them avoid losing their property entirely. In contrast, a foreclosure occurs when the lender takes possession of the property after the borrower fails to pay back the loan.