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.
Posted by: Walter Metzen
Bankruptcy and Foreclosure: The Consumer’s Overview
OK, here’s the deal with bankruptcy and foreclosure. Despite what you may have heard, filing for bankruptcy does not necessarily permanently stop a lender from foreclosing on your home. Filing for bankruptcy will always temporarily stop the bank foreclosing on your home. This is true regardless of which chapter you file under. In some cases,…Read more