How Not to Lose Your House: A Guide to Foreclosure and Alternatives
What is Foreclosure? If you default on your mortgage payments, your lender may take possession of your house. Foreclosure is the legal process by which a mortgage provider claims ownership of your property. On foreclosure, the lender sells the house to recover any outstanding debt. How the process is managed--whether the process is judicial or non-judicial--varies from state to state. In states with a judicial foreclosure process, the lender and borrower must go through the courts and a judge will make a final decision. This gives you the opportunity to fight your corner, defend your case, and save your home by obtaining a judgment in your favor. In states with a non-judicial foreclosure process, the rights of the lender to reclaim your property are based on clauses in the mortgage agreement and deeds. The prospect of foreclosure is a worrying and unpleasant experience. But there are several strategies you can take to stave off the worst outcome, avoid foreclosure,