{"id":286966,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/facing-foreclosure-how-bankruptcy-can-help.html"},"modified":"2023-12-12T11:05:00","modified_gmt":"2023-12-12T16:05:00","slug":"facing-foreclosure-how-bankruptcy-can-help","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/facing-foreclosure-how-bankruptcy-can-help.html","title":{"rendered":"How Bankruptcy Can Help Stop Foreclosure"},"content":{"rendered":"\n
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How Bankruptcy Can Help Stop Foreclosure<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Many Americans fall behind on their mortgage<\/a> payments. Some lenders and mortgage companies may be willing to work out deals with homeowners. This could be short sale or loan modification<\/a>. But, some lenders are not willing to offer these alternatives.<\/p>\r\n

Sometimes, bankruptcy can help when lenders begin the foreclosure process.<\/p>\r\n

If you fall significantly behind on mortgage payments, a lender will most likely begin the foreclosure process, as set out in the mortgage contract. The foreclosure process involves the creditor repossessing and selling the house at a public auction. The proceeds from that auction<\/a> will repay the mortgage and any legal costs.<\/p>\r\n

The foreclosure process takes time. Most creditors do not begin foreclosing until the homeowner is two to three months behind on their mortgage payments. This gives the homeowner some time to consider alternatives to foreclosure<\/a>, such as:<\/p>\r\n