Options For Foreclosure Avoidance

Foreclosure can be one of the most stressful financial challenges that a family can face and often times it can be avoided. The following are brief descriptions of some foreclosure alternative options:


A reinstatement is when a homeowner requests the total amount owed to the mortgage company to date and pays it. This option does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or a combination of these.

Rent the Property

A homeowner who has a mortgage payment where the market rent will allow it to be paid can convert their property to a rental and use the rental income to pay the monthly mortgage.

Deed-in-Lieu of Foreclosure

A deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option and the homeowner must also vacate the property.


Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. If the homeowner has non-mortgage debts.

A new report released by CoreLogic recently stated that foreclosure in the United States has dropped 24% since last year however there are still 1.4 million properties in the foreclosure process while last year there were 1.5 million homes in the foreclosure process. This is a 7% difference from this year to last year.  So why you ask are foreclosures down 24% but there is only a 7% difference in the amount of homes going through some sort of foreclosure activity?  More and more agents are helping their distressed clients take advantage of short sales and mortgage modification programs that are available to them from the government or their lender. So even though the total number of homes in the foreclosure process hasn’t dropped significantly, the number of homes actually being foreclosed upon has!

As an agent with the Certified Distressed Property Expert designation, I am extensively trained to help homeowners on the edge of losing their home find ways to minimize the financial impact of their situation.  I can provide a lifeline of information to help regain control.  Contact me today at [email protected] or 925-567-6170 for more information! Together we can take immediate action!

Here are some helpful links and resources for additional information:



Real Estate Attorney is Brian Ripley 415-725-8947 and email [email protected] http://www.brianaripley.com/

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