Foreclosure Prevention Resources
Choose Language English Spanish

Understand Your Options

Keeping your home or leaving your home is your biggest decision of all. Prior to making such a big decision you should fully understand all your options and you should also consult with a foreclosure prevention counselor for guidance. Get started now by clicking on the tabs below to learn more about the foreclosure avoidance options described below.

Keeping Your Home

Loan Modification

A loan modification permanently changes the original terms of a mortgage. Most loan modifications reduce monthly payments, making the mortgage more affordable for the homeowner and enabling them to stay in the home . A loan modification may reduce your interest rate, spread your payments out over a longer period of time, and even reduce the amount you owe.

Forbearance

If you are suffering a temporary hardship, a lender may agree not to foreclose and to accept reduced or no payments for a period of time. After the forbearance period, you will agree to a repayment plan or a loan modification to catch up on the missed payments.

Reinstatement

You have the right to reinstate or bring your loan current up to five days before a nonjudicial foreclosure sale by paying only the past due amounts, including any fees or charges your lender assessed. You may have a contractual right to reinstate your loan before judgment is entered in a judicial foreclosure.

Bankruptcy

You may be able to stop or avoid a foreclosure by filing bankruptcy. Bankruptcy can eliminate other debts so you can focus on your mortgage and will discharge your personal liability for the loan even if you keep the property. In a Chapter 13, you may be able to pay any past due amounts over time and even “strip off” an unsecured junior mortgage.

Surrendering Your Home

Cash For Keys

If you must surrender your home due to foreclosure, but leave it in good condition, your lender may offer you a lump sum of money. Commonly called "Cash For Keys," the amount varies from lender to lender, but typically ranges from $1,000 to $1,500. You should only consider Cash For Keys if you have exhausted all other options and determined that you will not be able to keep your home.

Deed In Lieu

If you are not able to keep your home, you may be able to voluntarily transfer the property to the lender to avoid foreclosure. The agreement is called a deed in lieu of foreclosure.

Short Sale

If you owe more than your home is worth and cannot afford to keep it, your lender may agree to let you to sell the house for less than what you owe. The lender may or may not forgive the remaining balance of your loan.