Frequently Asked Questions

Can I stop a foreclosure once it starts?

In most cases, Yes.  Depending on your situation, options may include Default Pay-off, Creative Financing, Subject-To Financing, Loan Reinstatement, Loan Modification, Repayment Plans, Forbearance Agreements, or Selling the Property before foreclosure is completed.

What happens if my home goes to auction?

If the property is sold at auction, ownership transfers to the successful bidder or lender, and your options become much more limited.

What if I have equity in my home?

Homeowners with equity in their home, have significantly more opportunities to preserve that equity by acting before foreclosure is completed.

What is a Notice of Default?

A Notice of Default (NOD) is a formal notice from your lender stating that you have fallen behind on your mortgage payments.  It is often the first official step in the foreclosure process and serves as a warning that action is needed to avoid losing your home.

How long do I have before foreclosure?

The timeline varies by state and lender, but foreclosure usually takes several months.  In most states , homeowners often have time to explore options after receiving a Notice of Default.  The sooner you act, the more solutions may be available.

Can I sell my house during foreclosure?

Yes. In most cases, you can sell your home any time before the foreclosure auction is completed.  Selling before foreclosure may allow you to pay off the mortgage, protect your credit, and preserve your equity.

What happens to my equity?

If your home has equity, you may be able to preserve it by selling before foreclosure.  If the property goes to auction, you risk losing some or all of your equity depending on the sale price and outstanding debts.

How does foreclosure affect my credit?

Foreclosure can significantly lower your credit score and remain on your credit report for several years.  It also may make it more difficult to qualify for future loans, credit cards, or favorable interest rates.

Should I pursue a loan modification or sell my house?

That depends on your goals and financial situation.  If you can afford the modified payment and want to keep your home, a loan modification may be a good option. If the payment is still unaffordable or you have substantial equity, selling may provide a better financial outcome.

What if I owe more than my home is worth?

You may still have options.  Depending on your circumstances, you may qualify for a loan modification, repayment plan, or short sale. Speaking with a foreclosure professional can help you understand the solutions that may be available.