What is the difference between forgiveness and reconciliation Is forgiveness and reconciliation the same thing?  What needs to happen for forgiveness to occur?  What needs to happen for reconciliation to take place?
Reconciliation is a process which involves several distinct phases, not necessarily in this order:


Conviction
Repentance
Confession
Forgiveness
Restitution


So, in my view, forgiveness is a part of an overall process of reconciliation.


  8 If we claim to be without sin, we deceive ourselves and the truth is not in us. 9 If we confess our sins, he is faithful and just and will forgive us our sins and purify us from all unrighteousness. 10 If we claim we have not sinned, we make him out to be a liar and his word is not in us.
  
  1 John 1:8-10


In general terms, first we experience the conviction of the Holy Spirit, which leads us to repentance.  With a repentant heart we confess our sins one to another (or to a priest or minister, if that's your persuasion).  We then receive forgiveness and instruction on how to make restitution, as appropriate to the wrong doing (if our confessor is doing his job).  

With God in regards to sin, forgiveness is dependent on true repentance (and, if you are Catholic or similar, confession to a priest).

Between people, specifically as regards interpersonal relationships, it is possible to forgive but never be reconciled with the other person - if the other person does not repent, there may be no reconciliation.  It is also possible to make restitution with or without forgiveness and never be reconciled because of personal hurts.

It seems to me that until there's actual interpersonal reconciliation, and the whole process has occurred, that sin still remains for one or other party or both.  Though wounds are covered with a band-aid - they still remain unhealed, eventually to get infected and fester.

Allowance should be made for when reconciliation is not possible, such as when one party has died.