There is nothing fun about a foreclosure. When you can't pay your mortgage, the bank has the right to take your home away as a payment for your debts. Sometimes bankruptcy can help you to avoid foreclosure by paying off your arrears. This may allow you to remain in your home. In certain cases, your debts may be too large to cover without selling your home. It all depends on your specific situation, and you will probably want professional help to determine whether or not a bankruptcy can help you. If you live in one of the following cities, you are more likely to go into foreclosure, according to an article by ABC news.

The top city for foreclosure is known as Fernley, Nevada. This small town is about 30 miles outside of Reno. With the highest foreclosure rate in the nation, Fernley is not the ideal family suburb. In fact, Fernley's laws include a 3 dog-per-house limit and serious concerns about the rampant use of graffiti in the town. In August 2010, the foreclosure rate came up 25 percent from the previous year, and many of the residents of Fernley found themselves homeless. At this time, the unemployment rate was 16 percent, and 1 in every 5 houses foreclosed.

The second most popular city for foreclosures is Las Vegas-Paradise Nevada, where 1 in every 6 homes forecloses. The unemployment rate in this city is 12 percent, and the barrage of casinos may help to hurt the housing market there. This is because people choose to gamble with their earnings, and when they lose their income they are not able to make a mortgage payment. The third city in this top 10 is another Nevada area called Pahrump. Following these, Modesto and Merced California are common places for foreclosure where 1 in every 8 homes is lost. Four more of the top 10 foreclosure cities are located in California: Stockton, Riverside-San Bernardino-Ontario, Bakersfield, and Vallejo. Cape Coral-Fort Meyers, Florida is another city where 1 in every 8 homes is foreclosed.

One bank says that the American Dreams of owning a home is slowly turning sour. With the economy still in a sort of slump, men and women cannot afford to pay their mortgage. It is safer to rent a home than to commit to the payments a mortgage requires. Still, bankers add that for people with money this might be a great time to invest in the housing market. The government has been working hard to diminish the number of foreclosures per year, mostly by lowering the unemployment rate. Some banks have also helped the situation by lowering their mortgage rates for people that are struggling.

A real estate law professor told ABC News that the real value of a home is based on the local economy. There can be neighborhoods with beautiful homes that are cheap because there are no jobs available in that area. The local economy helps to determine whether or not a town is a prone to foreclosure. Real estate researchers have been working to remind Americans that they may be better off renting while homes are unaffordable. While a mortgage rate deduction may seem tantalizing, many people won't be able to afford the regular payments. It's better to rent and have a reliable place to live than own a home that you may lose any week.

If you are facing foreclosure, you may want to talk to a bankruptcy about options. By filing for bankruptcy, you may be able to satisfy your mortgage payments and save your home. There are also other money-saving strategies such as a debt reduction or a payment plan that may allow you to keep your property. You will want to consider the many options available to you before succumbing to the foreclosure that is threatening your home.