Options to Stop Foreclosure
A clear checklist when foreclosure is moving quickly
The earlier you understand your options, the more useful conversations with your lender and advisors can be.
1. Contact loss mitigation first
Call the lender or mortgage servicer’s loss mitigation department. Ask for the foreclosure timeline, hardship options, required documents, and a single point of contact.
2. Ask about a loan modification
A modification may change the interest rate, term, principal treatment, or payment structure. The available program depends on the loan type and your circumstances.
3. Explore forbearance
Forbearance may temporarily reduce or pause payments. It does not erase the missed amount, so ask exactly how the balance will be handled later.
4. Consider refinancing
If you qualify, refinancing may replace the current loan. Rate-and-term refinancing, cash-out refinancing, a home equity loan, or a HELOC each carry different costs and risks.
5. Discuss a deed in lieu
A deed in lieu of foreclosure transfers the property to the lender by agreement. Ask about deficiency liability, credit impact, relocation support, and whether the lender will accept it.
6. Get legal advice about bankruptcy
Chapter 13 may create a 3–5 year repayment plan and an automatic stay. Chapter 7 has different consequences. Speak with a qualified bankruptcy lawyer about your facts.
Ready for a clearer next step?
Talk with the REI Help Center team.