Foreclosure "stinks"

The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt owned by the bank.

Transfer of ownership "good"

Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property subject to the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.

Bankruptcy "sucks"

By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a Chapter 7 No Asset bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an A paper loan for a period of two years after the bankruptcy.