Sacramento Bankruptcy: Foreclosure Basics

If you are facing foreclosure of your home, there are some basics you need to know.

A foreclosure does not mean your home is sold. Your house is still yours. A foreclosure is notice warning you of a mortgage delinquency. If you do not come current with your mortgage arrears (amount you are behind on your mortgage payments), the lender can sell your home to collect what they are owed. But before they can sell your home, they must give you 90 days to catch up on your mortgage.

If you cannot catch up on your payments within the 90 days, you can stop the lender from selling your home by filing bankruptcy. That does not mean, though, you don’t have to pay the delinquent portion of your mortgage if you want to stay in your home. But a bankruptcy can buy you time–up to 5 years–to catch up on your payments and, in so doing, continue to keep your home.

Modifying your mortgage may be an alternative if bankruptcy won’t work. There are a number of government agencies out there to help. KeepYourHomeCalifornia.org is a good one. Just know that if you can’t bargain your way out of a foreclosure with your lender, bankruptcy is a great option.