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Posted by njdave on June 20, 2002 at 15:43:57:
In Reply to: Foreclosure v.s Bankruptcy posted by BRachael on June 20, 2002 at 11:55:52:
You'll probably want to read several responses... but no, "bankruptcy" and "foreclosure" are not the same thing.
"Foreclosure" is a legal procedure by which mortgaged property is sold to satisfy debt. When you can no longer make payments on your mortgage loan, the Lender can FORECLOSE the mortgage, meaning that they will use whatever means available to force the sale of your home to pay off your debt. How your Lender goes about that process differs from state to state.
The act of "filing a bankruptcy petition" initiates a bankruptcy in which a Borrower seeks the Court to help manage &/or discharge his or her debts.
Sometimes, a certain type of "bankruptcy" can be used to help a Borrower to keep his or her home, saving it from foreclosure.
