Default Solutions
When a homeowner falls behind on mortgage payments, the pressure can feel overwhelming. Once the loan goes into default, the lender may move forward with foreclosure, which can eventually lead to an auction sale.
Default Remedy helps homeowners explore possible solutions before the home is lost to foreclosure. One option may include working with one of our investor partners to help bring the loan current through escrow, giving the homeowner time to sell the property in a more controlled and strategic way.
How Our Default Solution Works
In many cases, a homeowner may have equity in the property but not enough cash available to bring the mortgage current. Our investor partners may be able to provide a short-term promissory loan for the amount needed to cure the default.
This money is handled through escrow and used to bring the mortgage current, when approved and applicable. Once the home is out of default, the homeowner may then have the opportunity to sell the property on better terms instead of being forced into an auction sale.
Step 1: Review Your Foreclosure Status
We begin by reviewing your situation, including:
- Amount past due
- Foreclosure status
- Auction date, if scheduled
- Estimated home value
- Existing loan balance
- Available equity
- Property condition
This helps determine whether bringing the loan current and selling the home may be a realistic option.
Step 2: Investor Provides Funds Through Escrow
If the situation qualifies, one of our investor partners will provide funds through escrow to cover the amount needed to cure the default.
The homeowner signs a promissory note agreeing to repay the investor when the property sells. The promissory note will include the amount advanced, loan fee, repayment terms, and other required disclosures.
Step 3: Property Is Prepared for Sale
Once the default is cured, our real estate agents help determine the best selling strategy.
Depending on the condition of the property, the home may be:
- Listed on the open market for maximum exposure
- Marketed to qualified buyers
- Offered to cash investors
- Sold as-is if repairs are needed
- Positioned for a faster sale if time is limited
The goal is to help the homeowner preserve as much equity as possible while avoiding foreclosure.
Step 4: Escrow Closes and Funds Are Paid
When the home sells and escrow closes, the proceeds are used to pay:
- Existing mortgage balance
- Promissory note amount advanced by the investor
- Investor loan fee
- Escrow, title, and closing costs
- Real estate commission fees
- Any other required liens or payoff amounts
After all approved costs are paid, the remaining proceeds go to the homeowner.
Why This May Help Homeowners
This solution may help homeowners who:
- Are behind on mortgage payments
- Have received a Notice of Default
- Have an auction date approaching
- Have equity in the property
- Want to avoid foreclosure
- Cannot afford to bring the loan current on their own
- Want to sell before losing the home at auction
Benefits of Acting Before Foreclosure
Selling before foreclosure may help homeowners:
- Avoid losing the home at auction
- Protect remaining equity
- Reduce financial damage
- Maintain more control over the sale
- Choose between listing or accepting investor offers
- Walk away with remaining proceeds after closing
Important Notice
Every foreclosure situation is different. Not every homeowner will qualify for investor assistance, and results are not guaranteed. Any promissory loan, repayment agreement, sale strategy, or foreclosure solution should be reviewed carefully before signing.
Default Remedy provides education, guidance, and real estate support to help homeowners understand available options.
Request a Free Default Solutions Review
If you are behind on payments, in default, or facing an upcoming auction date, you may still have options.
Request a Free Default Solutions Review today to learn whether bringing your loan current through escrow and selling your property may be possible.