When it comes to foreclosure, the laws differ state to state.

When it comes to avoiding foreclosure (or at the very least delaying it) people in Illinois have a huge advantage over people in Missouri.

Real estate lawyers explained to me in Illinois there has to be a court proceeding before a bank can take your home. That means if you show up in court and as the bank for the ORIGINAL loan documents and they don't have them, you get to stay in your home.

Since mortgages are sold over and over again, finding the original paperwork is often an impossibility. Advantage: Illinois borrow.

Things aren't as good in Missouri where a bank can foreclose without a court hearing. Which means in many cases, you lose your home and then fight for a settlement in court.

I met a guy named Kevin Vanderfeltz who did exactly that and won. His settlement must be kept a secret, but he tells me he has enough money from it to pay cash for a house. However, he says he still can't trust the lending industry and plans to be in an apartment for a while longer.

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