Foreclosure is a legal process by which a bank, mortgage company or other creditor takes a homeowner’s property in order to satisfy a debt. The foreclosure is the result of non-payment of the mortgage (including second mortgages and home equity loans); however, people also lose their homes due to unpaid property taxes. As a result of the foreclosure (at the end of the redemption period), the homeowner loses the rights he or she had to the property.  In a “short sale,” the lender allows you to sell and agrees to forgive any shortfall between the sale price and the mortgage balance. With your lenders approval, you may be able to sell your home short anywhere on the timeline shown below until the Lender Acquires Title.