Title: Understanding Your Foreclosure Rights | Credit.com
Headings: Mortgage Foreclosure FAQs: Understanding Your Foreclosure Rights
Mortgage Foreclosure FAQs: Understanding Your Foreclosure Rights
Foreclosure Defined
What Happens When a House Goes into Foreclosure
Foreclosure and Your House-Related Debt
Lenders’ Obligations in a Mortgage Foreclosure
Ways to Stop or Prevent a Foreclosure
Defenses Against Foreclosure
Tax Issues Related to Mortgage Foreclosure
How Mortgage Foreclosure Impacts Your Credit
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Content: Request a short sale. If you can’t afford your home anymore, you can request a short sale. The lender has to agree to a short sale, but if they do, you can sell the house to a third party for less than you currently owe. In some states, the difference is forgiven, while in others you may be required to pay the difference between the sale price and the remaining loan amount. A short sale will affect your credit, but the effect will be less than that of a foreclosure or bankruptcy. File for bankruptcy. Filing a bankruptcy petition that includes your mortgage puts an automatic stay in place. This means that lenders can’t continue any type of collection procedure until the bankruptcy has been resolved or dismissed. Whether or not you keep your home depends on what type of bankruptcy you file and whether you can work out mortgage payments in the future. Filing for bankruptcy can have severe consequences for your credit and finances.