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Home owners take a mortgage while buying a house and are expected to repay the amount at regular installments. If the owner defaults payments, the lending institution seizes the house. In 2007, the real estate market experienced a crash, which resulted in a large number of house owners defaulting on their mortgage payments. from: http://ezinearticles.com/?Difference-Between-Short-Sale-and-Foreclosure&id=6233696
