John lost his manufacturing job six months ago in a round of mass layoffs, and he’s been unable to find consistent work since. He and his wife had little in savings, and with every day that passes they’re getting further and further behind on their bills.

Two months ago today, Mary’s husband walked out on her and the kids.
Between childcare costs and other bills, she can barely afford to put food on the table.

Every day thousands of people across the U.S. fall deeper into debt, often through no fault of their own.
Left unchecked, this debt ultimately threatens their number one asset, their home, through the process of foreclosure.

It doesn’t have to end there, though.
There are ways to stop foreclosure, protect your credit and keep your home.

What is Foreclosure?

In most states, when you buy a home there are actually two parties on the buying side: you (the mortgagor) and the lender (the mortgagee).
You own the home, but the mortgagee holds a lien on the property for as long as the mortgage has an outstanding balance.
The lien gives the lender the right to assume ownership of the property should you fall behind on payments.
That process by which the lender assumes ownership is called foreclosure.

All other states use a deed of trust, which serves the same purpose as a mortgage but actually involves three parties: you (the trustor), the lender (the beneficiary), and a third party (the trustee) who holds the temporary title on the home until the full balance is paid.
In these states, the foreclosure process involves the trustee selling your home when you become delinquent.

A key difference between mortgages and deeds of trust is in the foreclosure process.
With a mortgage, the lender must go through the court system to foreclose on your home.
Not so with a deed of trust.
The trustee must first fulfill certain requirements, but is then free to sell your home without going through the court system, leading to a much faster foreclosure.