How does foreclosure occur? who starts process? How does it affect your credit? Is bancruptcy better?
Generally, foreclosure happens when a homeowner fails to pay the monthly mortgage. Foreclosure also varies from each state and local governments as well.
Foreclosure starts when the mortgage company files a Notice of Default accompanied by a pending lawsuit against the homeowner. This stage is what we call a preforeclosure stage.
Bankruptcy is an option to stop a foreclosure but it should be reviewed extensively. It will still affect the credit score of an individual.