Foreclosure Prevention

The following options listed here may be suggested to clients facing difficult situations ranging from someone falling behind on their mortgage payment to a borrower in the active foreclosure stage.


Homeowners may agree to the deed the property back to the mortgagor to avoid lengthy legal proceedings in the court and transfer ownership back to the bank "in lieu" of facing foreclosure.


  • Quick & easy.


  • Homeowners may still owe balance, don't benefit at all.


Bank may agree to put any missed payments on temporary hold and would allow the homeowner to continue making payments with all interest accrued in arrears (past due interest) at the end of the term of the loan, thus extending the term of the loan.


  • Quick fix for homeowners that missed a few payments and allow borrower to pay at a later time.
  • Quick fix for someone recently unemployed and needing a grace period to catch up on their payment.
  • Balance in arrears doesn't change anything but extend the term of the loan.
  • Often times homeowners that choose this option end up behind again.

Loan Modification

For a temporary or permanent period of time, Loan Modifications (or "loan mods") allow homeowners the opportunity to modify loans based upon the discretion of the bank and may give the ability for homeowners to make their payments on time in the future. The loan mods can be approved if the lowered payment will allow a homeowner to afford the loan. The loan may be reduced through a lower interest rate, reduction of total principle, or both.


  • Allows homeowner to stay in the home and can actually lower the payment or balance.


  • Quite lengthy process.
  • May be only temporary.
  • May be costly if counsel assists.
  • May be costly to do if counsel assists.

Short Sale

With this option, homeowners may choose to have the property sold to a 3rd party. The property is sold as a regular sale however would require one extra step - approval from bank. The bank will agree to payoff the balance of the mortgage in full at time of sale "short" of what the balance is. In most cases the bank agrees to issuing satisfaction of payment to original homeowner.


  • Great alternative to foreclosure by minimizing damage to one's credit report for borrower. This may in turn allow them to purchase big ticket items like another home or an automobile in the future.
  • In many cases sale goes through with all debt forgiven.
  • May receive incentives at closing from bank.


  • Lengthiest process of all options.

For more information please Contact Us