What Happens In a Foreclosure?

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Find out what happens when your home goes into foreclosure. Learn how to deal with this situation and how you can stop foreclosures by filing bankruptcy.

Foreclosure can be a tricky process to navigate, especially because the rules and laws guiding their procedure can change drastically from state to state. But the do all follow a general pattern that's very important to understand, whether you're facing a foreclosure yourself or looking to buy them at auction.

It all begins after a homeowner defaults on payments of their monthly mortgage. In order to collect the unpaid debt on the mortgage loan, the lender will begin the process of foreclosure, which ultimately allows them to sell the property under mortgage at auction to retrieve the funds lost on the unpaid loan.