When a borrower cannot afford to keep up with their monthly mortgage payments, the bank will foreclose on the property in order to recoup the money they lent to the property owner. This involves selling real estate to satisfy outstanding mortgage debt. Although laws vary greatly by state, generally speaking, there are two basic types of foreclosure practiced nationwide: power of sale and judicial. Power of sale foreclosure is a generally faster process and usually involves a deed of trust, held by a trustee who has authority to sell the property in the event that the borrower fails to make payments. Many states, however, require lenders to utilize judicial foreclosure in order to take back property, which requires a judge and can take a year or longer. Bankruptcy can stop foreclosure. Learn how in some of the articles below.
What is the Difference Between Surrendering a Home and Foreclosure?
What is the difference between surrendering a home in bankruptcy and losing a home to foreclosure? Many consumers are confused by the interplay between the two. When you file bankruptcy and surrender a home, you give the property back to the lender. When a lender forecloses on your home due to non-payment, they take the home…Read more
I’ve Decided to File for Bankruptcy. Do I Need to Go through with My Short Sale?
If you’re in the middle of a short sale or just about to do one, you probably have a lot of questions. What is the difference between a short sale and a foreclosure? And what happens if you might file bankruptcy, as well? The benefit of continuing with a short sale after you’ve decided to…Read more
How is a Short Sale Different from a Foreclosure?
How Do Short Sales and Foreclosure Differ? With the housing market the way it is, many people want to know: what is the difference between a short sale and a foreclosure sale? And what difference does it make in bankruptcy? In a short sale, you have defaulted on your loan and cannot make the payments, but…Read more
Am I Protected by the Arizona Anti-Deficiency Statute?
Last updated Jan. 30, 2018. When most families purchase a home, they don’t envision ending up facing a foreclosure sale, but in states like Arizona where the housing market has been particularly hard hit, foreclosure is an all-too-common event. In cases where a home has plummeted in value, borrowers have two main concerns: I’m afraid…Read more
Deficiency Judgment: After Foreclosure, Do I Owe Money?
A common misconception among consumers is that after foreclosure they will not owe their mortgage lender. Many homeowners who go through foreclosure are surprised to learn that they still owe money on their house, even though they no longer own it! Most mortgage lenders require borrowers to personally guarantee the amount of the note, leaving…Read more
How Long Does Foreclosure Take?
If you’re running into trouble making your mortgage payments, you may be wondering: How long does it take for a bank to foreclose on your home? Most lenders will not begin foreclosure proceedings until a borrower is 3-6 months behind on their payments. Although missing a single payment is technically a default under the terms…Read more