A lender issuance of a home foreclosure notice is a trauma not easily forgotten financially and emotionally. It’s an experience not for the faint of heart, but it is possible to recover from foreclosure and get a fresh financial start if you will address the causes that got you into trouble in the first place.
Foreclosure happens for various reasons. Unemployment, income crisis and job loss are a few easily recognized. Time will heal all wounds but you’ll need to begin creating a future financial environment so that the next parachute that drops on your front porch has your name on it.
All foreclosures will involve a lawsuit by a bank, Mortgage Company, or other lien holder type whose only interest is in recapturing and satisfying a debt you imposed on them. In essence retaking ownership of the property via legal means or selling the property to pay off the debt. Note: once the lender has a foreclosure notice tacked on your front door you may stall and forgo the inevitable for a few months before the auction by declaring bankruptcy, but it won’t last forever.
The real solution for a homeowner is to get lucky by selling under a pre-foreclosure listing which you have the right to do under your name and ownership. This is a good deal for an investor because the home is still lived in and not trashed. The lender can still take away the home, but will have to use legal proceedings to do so.