6 Ways to Stop Foreclosure
Depending on how far behind you are and your current financial situation, you may have several options to avoid losing your home to the bank.
1. Loan Modification
You can negotiate with your lender to change the terms of your mortgage. This might include lowering the interest rate, extending the term of the loan, or adding missed payments to the back of the loan.
Best if: You have recovered from a temporary financial hardship and have steady income again.
2. Forbearance or Repayment Plan
A forbearance temporarily pauses or reduces your payments. A repayment plan allows you to pay your regular monthly payment plus a portion of your past-due amount over several months.
Best if: Your financial setback is very short-term.
3. Short Sale
If you owe more than the house is worth (underwater), the lender may agree to let you sell the home for its current market value and forgive the remaining debt.
Best if: You are underwater on your mortgage and need to leave the property. Requires lender approval.
4. Deed in Lieu of Foreclosure
You voluntarily transfer the ownership (deed) of your property directly to the lender in exchange for being released from your mortgage obligations.
Best if: You've tried selling the home and can't, and the lender agrees to accept the deed instead of foreclosing.
5. Bankruptcy
Filing for Chapter 13 bankruptcy triggers an "automatic stay," which instantly halts the foreclosure process and allows you to restructure your debts over 3-5 years.
Best if: You have significant other debts and want to fight to keep the home. Consult an attorney.
6. Sell to a Cash Home Buyer
Sell your home quickly for cash before the auction date. The proceeds pay off your mortgage directly, stopping the foreclosure, protecting your credit, and letting you walk away clean.
Best if: You have equity, don't want to repair the house, and need a guaranteed fast close to beat the auction date.
Request your cash offer →