Foreclosure

Bankruptcy And The Forclosure Process

Foreclosure is the legal process by which a lender reclaims a home or property to recoup the outstanding balance on a mortgage or loan. The property is sold, usually at auction, and the proceeds of the sale are used to settle the debt. The foreclosure process differs from state to state, and can happen as quickly as 30 days from the time that a notice is received.

In some cases, the lender can also come after the person for the remainder of the loan if the sale price doesn't satisfy the debt.

You can stop the foreclosure process by filing bankruptcy. By filing a Chapter 13 bankruptcy case you can catch up on back payments on your home through the payment plan worked out with the bankruptcy trustee. You must continue to make timely payments on your home during the bankruptcy case, or the lender may petition the court to proceed with the foreclosure sale.