BANKRUPTCY is bad. FORECLOSURE is worse.
BANKRUPTCY is bad. FORECLOSURE is worse.
Although it is preferable to avoid bankruptcy, it is even better to avoid foreclosure. Foreclosure is the legal process whereby property is repossessed and sold at auction to cover the costs of an unpaid debt. This is usually the result of a homeowner defaulting on mortgage or loan repayments. The most common causes of foreclosure are divorce, loss of employment or a death in the family.
The foreclosure process can be long and costly and is regulated by state law. The most important thing to remember if you are forced to make a mortgage payment late is to contact your lender immediately.
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