12 Foreclosure Options. Click one to learn what it is and what to expect.

Option 1. Loan Modification

What it means:

  • Changes your current mortgage, not a new loan

  • Lender may lower payments or interest

  • Missed payments may be added to the end of the loan

  • Goal is to make the loan affordable again

How it works:

  • You contact your lender’s loss mitigation department

  • You submit a hardship package, usually including:

    - Proof of income

    - A short hardship letter

    - A list of monthly expenses

  • The lender reviews your file

  • If approved, you make trial payments

  • After trial payments, the new terms become permanent

Estimated Timeline:

  • Paperwork prep: 2–6 weeks

  • Lender review: 1–3 months

  • Must start before the foreclosure sale date

  • Foreclosure may continue during review

Estimated Costs:

  • Lenders have different rules

  • Approval depends on:

    - Income

    - Loan type

    - Payment history

    - Timing of application

Why it's Different

For Everyone:

  • Lenders have different rules

  • Approval depends on:

    - Income

    - Loan type

    - Payment history

    - Timing of application

Good Things:

  • You keep your home

  • Monthly payment may go down

  • No lump-sum payment required

  • Can stop foreclosure if approved in time

Not-So-Good Things:

  • Slow process

  • Monthly payments may go up

  • Heavy paperwork

  • Approval is not guaranteed

  • Missed steps can restart the process

Bottom Line:

  • Works best when income is steady

  • Requires time before auction

  • Starting early improves chances

How loan modifications work depends on your lender.

Who is your lender?

See other ways homeowners stop foreclosure

Option 2. Forbearance

What it means:

  • Forbearance is a temporary pause or reduction in your mortgage payments

  • It does not erase what you owe

  • Missed payments must be dealt with later

  • Used when a hardship is short-term, not permanent

How it works:

  • You contact your lender and ask about forbearance options

  • You explain your hardship (job loss, medical issue, etc.)

  • The lender may allow:

    - Paused payments

    - or Reduced payments for a set time

  • After forbearance ends, you must handle the missed amount

Estimated Timeline:

  • Request & setup: can take a few days to 2 weeks after contacting your lender

  • Approval decision: some lenders decide quickly, others take several weeks

  • During review: foreclosure may continue unless the lender confirms a pause

  • Forbearance length: usually lasts 3 to 12 months, depending on the lender

  • After it ends: missed payments must be handled through repayment, modification, or another option

Estimated Costs:

  • No fee to request forbearance from your lender

  • Interest may continue to add up

  • Missed payments are still owed later

Why it's Different

For Everyone:

  • Some lenders are flexible, others are not

  • Rules depend on:

    - Your loan type

    - Your lender

    - Your hardship

    - Your timing in foreclosure

Good Things:

  • Can give fast relief

  • Low paperwork compared to other options

  • Helps during short-term hardship

  • May pause foreclosure temporarily

Not-So-Good Things:

  • Payments don’t disappear

  • Missed amount must be repaid later

  • Can lead to payment shock if not planned

  • Not a long-term fix

Bottom Line:

  • Forbearance buys time, not a solution

  • Works best when income is expected to

  • recover

  • You need a plan for what comes after

Forbearance options vary by lender and loan type.

Who is your lender?

See other ways homeowners stop foreclosure

Option 3. Repayment Plan

What it means:

  • Lets you catch up on missed payments over time

  • You keep your current loan

  • Missed payments are split into smaller monthly amounts

  • You pay your normal payment plus extra each month

  • Once caught up, payments return to normal

How it works:

  • You contact your lender and ask about a repayment plan

  • The lender reviews your income and monthly expenses

  • If approved, missed payments are split into smaller amounts

  • You pay your regular payment + extra each month

  • Once caught up, payments go back to normal

Estimated Timeline:

  • Prep and request: 1–2 weeks

  • Lender review: 2–6 weeks

  • Plan length: usually 3–12 months

  • Must be set up before the foreclosure sale

Estimated Costs:

  • No fee from the lender to apply

  • No lump sum required

  • The “cost” is higher monthly payments during the plan

  • Late fees or interest may still apply depending on the loan

Why it's Different

For Everyone:

  • Lenders set different rules

  • The amount missed changes the plan length

  • Your income decides how much extra you can pay

  • Some lenders deny plans if payments are too far behind

Good Things:

  • No big upfront payment

  • Lets you keep your home

  • Simple compared to other options

  • Works well if your income is stable again

Not-So-Good Things:

  • Monthly payments can feel tight

  • Missing one payment can cancel the plan

  • Not offered by all lenders

  • May not stop foreclosure until fully approved

Bottom Line:

  • A repayment plan can work if your income is steady

  • You must afford higher monthly payments for a while

  • It helps when you’re behind but don’t have a lump sum

  • Missing payments can cancel the plan and restart foreclosure

A Repayment Plan depends on your lender.

Who is your lender?

See other ways homeowners stop foreclosure

Option 4. Payment Deferral

What it means:

  • Missed payments are moved to the end of your loan

  • You don’t have to pay them right now

  • Your monthly payment usually stays the same

  • You pay the deferred amount later when the loan ends or is refinanced

How it works:

  • You contact your lender and ask about payment deferral options

  • The lender reviews your loan and hardship

  • If approved, missed payments are set aside

  • You resume making your normal monthly payment

  • The deferred amount is due later, not monthly

Estimated Timeline:

  • Request & setup: usually 3–10 business days after contacting your lender

  • Approval decision: often 1–4 weeks, depending on lender and loan type

  • Deferral length: commonly 6–36 months, or until the loan is paid off, refinanced, or sold

  • During review: foreclosure may continue until the deferral is officially approved

  • After approval: normal payments usually resume right away

Estimated Costs:

  • No fee to request a deferral from the lender

  • Interest may still accrue on deferred amounts

  • No lump-sum payment required upfront

Why it's Different

For Everyone:

  • Depends on:

    - Loan type (FHA, VA, conventional, etc.)

    - Lender rules

    - Number of missed payments

    - Timing in foreclosure

  • Some loans allow deferrals easily. Others don’t offer them at all.

Good Things:

  • No higher monthly payment

  • No lump sum needed

  • Simple compared to other options

  • Helps if income is stable again

Not-So-Good Things:

  • Deferred balance still has to be paid later

  • May increase the total amount owed

  • Not offered on all loans

  • Doesn’t fix long-term affordability issues

Bottom Line:

  • Payment deferral can work if you’re back on track now

  • It pushes missed payments to the future, not away

  • Best when the hardship is over and income is stable

Payment deferral availability depends on your lender.

Who is your lender?

See other ways homeowners stop foreclosure

Option 5. Pay the Reinstatement

What it means:

  • You pay all missed payments at once

  • This brings the loan current

  • Foreclosure stops once the payment is accepted

  • You keep your existing loan and payment

How it works:

  • You request a reinstatement quote from your lender

  • The quote shows the total amount needed to catch up

  • You must pay the full amount by the deadline

  • Once paid, the loan is considered current again

Estimated Timeline:

  • Requesting the quote: usually 1–5 business days

  • Quote validity: often 5–10 days before it expires (depends on request)

  • Payment processing: can take 1–3 business days

  • Must be completed before the foreclosure sale

Estimated Costs:

  • Missed monthly payments

  • Late fees

  • Legal and foreclosure fees

  • Interest owed

Why it's Different

For Everyone:

  • Amount depends on how far behind you are

  • Fees vary by lender and state

  • Quotes expire and can change quickly

  • Some lenders require certified funds

Good Things:

  • Fastest way to stop foreclosure

  • Keeps your loan and terms the same

  • No long application process

  • No new loan needed

Not-So-Good Things:

  • Requires a large lump sum

  • Not everyone has access to the cash

  • Quote amounts can be higher than expected

  • Missing the deadline means starting over

Bottom Line:

  • Reinstatement works if you have the money available

  • It’s fast, but unforgiving on timing

  • Best when foreclosure is close and funds are ready

Reinstatement depends on how much time you have

See other ways homeowners stop foreclosure

Option 6. Short Term Loan (Bridge Refinance)

What it means:

  • A short-term loan pays off your current mortgage to stop foreclosure

  • You get a new temporary loan on the home

  • This gives you time to stabilize, then refinance later

  • These loans usually last months, not years

How it works:

  • A short-term lender looks mainly at home value and equity

  • Credit and income matter less than equity

  • If approved, the lender pays off the current loan to stop foreclosure

  • You get a temporary loan with higher payments

  • Later, you refinance or sell the home to pay this loan off

  • (Equity-focused, fast, temporary)

Estimated Timeline:

  • Application & review: usually 3–10 days

  • Approval & funding: often 1–3 weeks

  • Loan length: commonly 6–24 months

  • Must be completed before the foreclosure sale

Estimated Costs:

  • Interest rates: often 8%–14%, higher than normal mortgages

  • Lender fees: usually 1%–3% of the loan amount

  • Appraisal: about $400–$700

  • Closing costs: often $2,000–$5,000, depending on the deal

  • Out-of-pocket cash: often low or none, since costs are usually paid through home equity

  • All costs are estimates and vary by lender, loan size, and property.

Why it's Different

For Everyone:

  • Depends on how much equity the home has

  • Lenders have different rules and risk limits

  • Property condition can matter

  • Location can matter (rural vs. suburban or urban properties may be treated differently)

  • Not all homes or situations qualify

Good Things:

  • Stops foreclosure even when you can’t reinstate

  • Fast compared to many lender options

  • Uses home equity instead of cash

  • Buys time to fix credit or income

Not-So-Good Things:

  • Higher monthly payments

  • Short repayment window

  • Not available to everyone

  • You must refinance or sell later

Bottom Line:

  • A short-term loan can stop foreclosure fast

  • It works best when there’s enough equity

  • It’s a temporary bridge, not a permanent fix

A short-term loan depends on how soon your auction is.

See other ways homeowners stop foreclosure

Option 7. Refinance your Loan

What it means:

  • You replace your current mortgage with a new long-term loan

  • The new loan pays off the old one

  • The goal is lower payments or better terms

  • This is different from short-term or emergency loans

How it works:

  • A bank or mortgage company reviews income, credit, and debt

  • Equity matters, but ability to repay matters more

  • If approved, the new loan pays off the old mortgage

  • Foreclosure stops because the loan is fully paid

  • You make long-term payments under the new loan terms

  • (Income/credit-focused, slower, long-term)

Estimated Timeline:

  • Application & paperwork: 1–3 weeks

  • Underwriting & approval: 3–6 weeks

  • Closing: 30–60 days total

  • Must close before the foreclosure sale

  • This option takes time and works best when foreclosure is not immediate.

Estimated Costs:

  • Interest rate: usually lower than short-term loans

  • Closing costs: about 2%–5% of the loan amount

  • Appraisal: around $400–$700

  • Out-of-pocket cash: sometimes required, but often rolled into the loan

Why it's Different

For Everyone:

  • Approval depends on:

    - Credit score

    - Income stability

    - Equity in the home

    - Loan type and lender rules

  • Some homeowners qualify easily; others don’t

Good Things:

  • Long-term solution

  • Lower interest rates than short-term loans

  • Predictable monthly payments

  • No need to sell the home

Not-So-Good Things:

  • Harder to qualify while in foreclosure

  • Slower than emergency options

  • Requires solid income and credit

  • Not always possible close to auction

Bottom Line:

  • Refinancing can work if you qualify and have time

  • It’s a long-term fix, not a fast one

  • Best when foreclosure is still early

Refinancing depends on how much time you have.

See other ways homeowners stop foreclosure

Option 8. Sell the House

What it means:

  • You sell the home before the auction

  • The sale pays off (or settles) the mortgage

  • Foreclosure stops once the loan is handled

  • There are different ways to sell, depending on time, equity, and condition

Common Ways Homes

Are Sold:

  • Cash sale: fast sale to a cash buyer or investor

  • Agent / MLS sale: traditional listing with a real estate agent

  • Subject-to sale: buyer takes over payments while loan stays in your name

  • Loan assumption: buyer takes over your existing loan (if allowed)

  • Short sale: lender agrees to accept less than what’s owed

  • Other investor structures: like novation or creative sales

How it works:

  • You choose a selling path based on time and equity

  • A buyer is found and an offer is agreed on

  • Title and payoff are reviewed

  • The sale closes before auction

  • Foreclosure stops once the loan is handled

Estimated Timeline:

  • Cash or investor sale: as fast as 3–21 days

  • Agent / MLS sale: often 60–90+ days

  • Short sale or assumption: usually 2–4 months

  • Must close before the auction date

  • The closer you are to auction, the fewer selling options remain.

Estimated Costs:

  • Some sales have no out-of-pocket costs

  • Agent sales may include commissions

  • Cash or investor sales often cover closing costs

  • Sale price varies based on speed, repairs, and equity

Why it's Different

For Everyone:

  • Time left before auction

  • Amount of equity (or lack of it)

  • Condition of the home

  • Loan type and lender rules

  • Comfort level with different sale structures

  • These factors determine which selling paths are realistic.

Good Things:

  • Stops foreclosure completely

  • Gives you a clean exit

  • No long-term payment stress

  • Can protect your credit from a foreclosure mark

  • You may receive cash at closing, depending on your equity and how the home is sold

Not-So-Good Things:

  • You no longer own the home

  • Faster sales usually mean lower price

  • Some options take time and approval

  • Not all buyers or structures are trustworthy

Bottom Line:

  • Selling the home is the most final way to stop foreclosure

  • It trades ownership for certainty and closure

  • The “best” way to sell depends on time, equity, and comfort level

Selling the house depends on how much time you have

See other ways homeowners stop foreclosure

Option 9. File Bankruptcy

What it means:

  • Bankruptcy is a legal process handled by a court

  • Filing can temporarily stop foreclosure

  • It does not erase foreclosure automatically

  • It’s often used when time is very short

How it works:

  • You speak with a licensed bankruptcy attorney

  • The attorney files a bankruptcy case with the court

  • An automatic stay may pause foreclosure

  • You follow court rules and payment plans, if required

  • The outcome depends on the type of bankruptcy filed

Estimated Timeline:

  • Attorney consult: same day to a few days

  • Filing: often 1–3 days after paperwork is ready

  • Foreclosure pause: can happen immediately after filing

  • How long it lasts: depends on the bankruptcy type and court

  • Bankruptcy is one of the fastest ways to pause foreclosure, but it’s not always permanent.

Estimated Costs:

  • Attorney fees: often $1,500–$4,000+, depending on the case

  • Court filing fees: usually $300–$350

  • Some cases allow payment plans for fees

  • Costs and requirements vary by attorney and state.

Why it's Different

For Everyone:

  • Depends on:

    - Type of bankruptcy filed

    - Income and debts

    - State laws

    - Prior bankruptcy history

  • Some filings stop foreclosure longer than others

Good Things:

  • Can stop foreclosure very quickly

  • Gives breathing room when time is short

  • Court protection applies immediately after filing

Not-So-Good Things:

  • Serious impact on credit

  • Not all bankruptcies stop foreclosure long-term

  • Requires working with an attorney

    Can be expensive and complex

Bottom Line:

  • Bankruptcy can pause foreclosure fast

  • It’s a legal tool, not a housing solution

  • Best used when other options aren’t available or time is very short

Bankruptcy depends on how much time you have

See other ways homeowners stop foreclosure

Option 10. File a TRO (Temporary Restraining Order)

What it means:

  • A TRO is a court order that can temporarily pause foreclosure

  • It does not cancel foreclosure

  • It only buys short-term time

  • It must be requested by an attorney

How it works:

  • You contact a licensed attorney

  • The attorney files a TRO request with the court

  • A judge decides whether to grant it

  • If approved, foreclosure may be paused for a short time

  • Next steps depend on the court and case details

Estimated Timeline:

  • Attorney review: same day to a few days

  • Court filing: often 1–3 days

  • Decision: sometimes same day or within a few days

  • How long it lasts: usually days to a few weeks

  • A TRO is meant for urgent situations only.

Estimated Costs:

  • Attorney fees: often $1,000–$3,000+

  • Court fees: usually $100–$400, depending on the state and court

  • Emergency or same-day filings: can add $50–$150 in court-related fees

  • Costs and outcomes vary widely.

Why it's Different For Everyone:

  • Depends on:

    - State laws

    - Judge discretion

    - Reason for the request

    - Prior filings or delays

  • Some requests are denied quickly

Good Things:

  • Can pause foreclosure very fast

  • Useful when auction is very close

  • Gives short breathing room

Not-So-Good Things:

  • Temporary by nature

  • Not guaranteed

  • Requires legal help

  • Can be costly for limited time gained

Bottom Line:

  • A TRO is a short pause, not a solution

  • Best used when time is almost gone

  • Usually paired with another option

A TRO depends on how soon your auction is

See other ways homeowners stop foreclosure

Option 11. Foreclosure Defense Attorney

What it means:

  • You hire a licensed attorney to review your foreclosure

  • The attorney looks for legal errors or violations

  • They may challenge the foreclosure in court

  • This can delay or stop foreclosure in some cases

How it works:

  • You consult with a foreclosure defense attorney

  • The attorney reviews loan documents and notices

  • If issues are found, they may:

    - File motions

    - Request hearings

    - Negotiate with the lender

  • Outcomes depend on the facts and the court

Estimated Timeline:

  • Consult & review: a few days to 1–2 weeks

  • Court actions: weeks to months

  • Possible delays: vary by case and judge

  • Not guaranteed to stop foreclosure permanently

Estimated Costs:

  • Attorney fees: often $2,000–$7,500+, depending on complexity

  • Court fees: may apply and vary by state

  • Ongoing cases can increase total cost

Why it's Different For Everyone:

  • Depends on:

    - State foreclosure laws

    - Loan documents and servicing history

    - Timing before auction

    - Judge discretion

  • Some cases have strong defenses; others do not

Good Things:

  • Can uncover lender mistakes

  • May pause foreclosure through court action

  • Provides legal guidance and representation

Not-So-Good Things:

  • Expensive

  • Outcomes are uncertain

  • Can take time

  • Not every case has a valid defense

Bottom Line:

  • A foreclosure defense attorney can help when legal issues exist

  • It’s not a guaranteed fix

  • Best when time remains and errors may be present

Foreclosure defense depends on your state’s laws

Choose your State

See other ways homeowners stop foreclosure

Option 12. Deed in Lieu

What it means:

  • You voluntarily give the home back to the lender

  • The lender agrees to accept the property instead of foreclosing

  • Foreclosure stops once the deed is transferred

  • You no longer own the home

How it works:

  • You contact your lender and ask about a deed in lieu

  • The lender reviews your finances and the property

  • If approved, you sign paperwork transferring ownership

  • The loan is settled based on the agreement terms

Estimated Timeline:

  • Application & review: 2–6 weeks

  • Approval & paperwork: 1–3 weeks

  • Total: usually 1–2 months

  • Must be completed before auction

Estimated Costs:

  • Usually low or none out of pocket

  • Lender often covers:

    - Recording fees

    - Closing paperwork

  • Some lenders offer relocation assistance, but not guaranteed

Why it's Different For Everyone:

  • Depends on:

    - Lender rules

    - Property condition

    - Whether there are other liens (HOA, taxes, second mortgage)

  • Not all lenders approve deeds in lieu

Good Things:

  • Avoids foreclosure auction

  • Simpler than court options

  • Less credit damage than foreclosure (often)

Not-So-Good Things:

  • You lose the home

  • Approval is not guaranteed

  • Doesn’t work if there are multiple liens

  • No cash payout in most cases

Bottom Line:

  • A deed in lieu is a clean exit when keeping the home isn’t possible

  • It avoids the stress of auction

  • Works best when there’s time and lender cooperation

A deed in lieu depends on how much time you have

See other ways homeowners stop foreclosure

Talk to someone who:

  • works with foreclosures every day

  • explains foreclosure options in more detail

  • is familiar how the foreclosure process works

What state is your foreclosure in?

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