Here are the most used options available to stopping the foreclosure process


• Loan Modification (Most Popular Alternative)

We can negotiate with your lender to get your loan in good standing again. There are many options available to us to get a restructure approved like a separate payment plan for you delinquency or even adding the delinquency to the end of your loan. Sometimes we can even lower your monthly payment!

• Reinstatement

Pay your lender(s) all of your past due payments to bring your mortgage current. This option in rarely feasible.

• Refinance

We have established relationships with very reputable lenders who can give loans on mortgages that are in foreclosure if there is enough equity in your property available.

• Reverse Mortgage

Must have large equity. Must be 62 years of age.

• Sell Your Home

You may simply sell your home before the Foreclosure Sale Date. Sometimes the homeowner is unable to sell the home outright at the desired sale price and this not an option.

• Short Sale

We may be able to negotiate a Short Sale on your behalf with your lender(s)

In this instance the lender may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process

• Deed In Lieu of Foreclosure

We can arrange for you to simply give the home back to the lender and walk away with a clean slate.

A deed in lieu of foreclosure occurs when the borrower agrees to trade the property to the lender in exchange for the cancellation of the note. This foreclosure alternative is more likely to work in states where there is a long foreclosure timeline. The lender will be able to get the property much sooner than going through the foreclosure process, which lessens the probability of the property being in disrepair as well as eliminates the lenders costs to foreclose.

Market conditions as well as state‐specific laws will influence whether and how a lenderaccepts a deed in lieu of foreclosure. Typically, lenders are less willing to consider a deed in lieu of foreclosure in declining markets. However, in appreciating markets, lenders may accept properties in lieu of foreclosure

• Bankruptcy

This is a last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure.

Chapter 7 Debt Elimination

Chapter 13 Debt Re-Organization

• Foreclosure

You may elect to allow the home to be entered into mortgage foreclosure. This is the most damaging to you. The lender will take your home and all of your equity.

If there is no equity, your lender may get a deficiency judgment against your and want you to repay the shortage or “deficiency.” This is the most damaging to your credit and your ability to acquire another home loan. Plus the foreclosure stays on your credit report for 7 years or more.

If the homeowner is only weeks away from the foreclosure sale taking place, the homeowner may not be able to pursue any of the previous options, including a short sale. If contacted by the homeowner at a late date, recommend that the homeowner contact the lender immediately, and see if there is any way to explore foreclosure alternatives. Also, in some situations, foreclosure may even be in the best interest of distressed homeowners, although doing so will wreak the most damage to their credit.

If the lender will not explore foreclosure alternatives, real estate professionals should instruct their clients and customers to contact their attorneys for advice.

• Do Nothing or Walk Away

If homeowners are simply unhappy that the value of the property is less than what they paid or owe, they need to contact an attorney for advice. Walking away from the loan or asking the lender to proceed with a short sale simply because the value went down may not be a viable option and if it is, there will often be additional financial consequences.

• Is the Loan Recourse or Non Recourse?

In a recourse loan, the borrower retains personal liability for any deficiency after a short sale or foreclosure. The lender reserves their right to pursue the personal assets of the borrower by obtaining a court ordered deficiency judgment.

In a non recourse loan, the lender is limited to whatever funds are available from its security interest in the property itself and cannot force the borrower to repay any deficiency.


In May 2009, the Obama Administration announced the development of Foreclosure Alternatives, another program of the Making Home Affordable initiative. Under this program, borrowers and mortgage servicers are provided incentives and documentation is standardized to help facilitate short sales or deeds in lieu of foreclosure if short sales are not successful.

Incentives are:

• $1,000 for servicers for successful short sale or deed‐in‐lieu‐of‐foreclosure

• $1,500 for borrowers/homeowners to help with relocation expenses

• Up to $1,000 toward cost of paying junior lien holders to release liens

Features of this program include, but are not limited to:

• Depending on market conditions, 90 days up to one year to market and sell the property.

• No foreclosures may occur during the marketing period specified in the short sale agreement.

• Mortgage servicers cannot charge fees to borrowers for participating in Foreclosure Alternatives.

• Mortgage servicers cannot negotiate lower commission after an offer has been received.

Note: If you need more details regarding refinance or modification programs go to