Foreclosure is not something most people want to deal with. When a person faces foreclosure, they are facing losing their home. Foreclosure is the last step a lender takes when a person has stopped paying their mortgage payments. Once a person reaches foreclosure there is little they can do to stop it.



Foreclosure starts after the lender has exhausted their attempts to get payment. Usually this does not happen after one missed payment, but rather is caused by repeated failure to pay. The lender has the right to take possession of the home through the process of foreclosure as stated in the loan contract.

This is because to secure the loan the home was put up as collateral. What this means is that the person promised should they fail to pay the loan that the lender could have their home.

The process of foreclosure begins it can take about 2 to 3 months until it is completed. The foreclosure process starts with letters or calls demanding the past due payments. Upon repeated cooperation from the homeowner, the bank will then start legal proceedings for the foreclosure.

They will file a complaint with the court and the homeowner will be served papers. If the homeowner does not respond the court will rule in favor of the lender. Even if you do show up in court or serve an answer to the complaint the court will not usually accept any excuses except that you do not owe money.

After the court proceedings, the title to the home is auctioned off. The lender usually takes ownership and you are then required to vacate the home. If a person refuses to leave then the sheriff is called in to remove them form the home. They no longer have any legal rights to be the home.

The only way to stop a foreclosure sale is to file bankruptcy. The bankruptcy must be filed before the actual sale. However, filing bankruptcy also jeopardizes a persons credit. A person should seriously try to find another way to avoid foreclosure before the process even begins. Foreclosure is not a pleasant process and can be very demanding to an individual.

Once a home loan gets to the foreclosure stage it usually is very difficult to turn things around and save the home. A foreclosure is a serious bad mark on a credit report and can prevent a person from obtaining any credit extensions in the future.

Before a home reaches foreclosure a person should try their best to work out a solution with their lender. It is best to avoid foreclosure if at all possible. Not only will a person lose their home, but they will also jeopardize their credit if they proceed through a foreclosure.