One of the worst experiences to go through can be a foreclosure. It's stressful, can ruin your credit, and is a financial nightmare.
Losing your home by way of foreclosure can also cause embarrassment as its made public that you failed to pay a debt.
Foreclosures make it incredibly difficult to purchase a home in the future as well. Nobody buys a home with the goal of going through foreclosure, so when it happens it can be intimidating and most people are not prepared for it. Luckily there are ways to stop foreclosure.
When the bank is foreclosing on your house, one of the options which may have passed through your mind is declaring bankruptcy. Bankruptcy is a social taboo, but it does dissolve many of your debts, which can create a fresh start for a person who is falling into a hopeless spiral of debt.
Before you rush into declaring bankruptcy though, you should consider the details of how it may affect your situation—which can vary by state and also depend on the type of bankruptcy which you file.
Foreclosure is what happens when a property owner defaults on their mortgage. After missing payments, the lien holder (usually a bank) will seek to take back ownership of the property.
Foreclosure involves the owner relinquishing all rights to the property and any contents remaining inside. The foreclosure process can be stressful to both the creditor and property owner.
Are you about to fall behind on your mortgage, or already falling behind? Are you late due to unforeseen or unavoidable short term hardship?