1. Discounted loan payoff – Pay the principal balance off at a discount in one payment
  2. Withdraw money from your 401K as a hardship distribution – For more information from the IRS visit Hardship Distributions
  3. Refinance – Completely pay off the entire loan amount plus any default amounts and fees. This may result in a lower monthly payment.
  4. Reinstatement – Paying the entire past-due amount on the mortgage loan (all missed payments, plus interest, attorney fees, late fees, taxes, and other fees). This requires the lender’s approval, particularly if the foreclosure has already started. To discuss this option further, please call us as soon as possible
  5. Loan modification – Change the conditions of the loan by reducing interest rate and creating affordable monthly payments
  6. Forbearance – Lender might agree to a temporary repayment plan to avoid foreclosure.
  7. New second mortgage/partial claim – The lender may give the homeowner an additional mortgage, secured by the home. All of the new loan proceeds are used to bring the 1st mortgage up to date. From that point on, the homeowner must make payments on both the original and new loans.


  1. Deed in lieu of foreclosure/quit-claim deed – Give the property to the lender instead of letting the property go into foreclosure. While less damaging than a foreclosure, this may impact the borrower’s credit score.
  2. Rent the property – This works best when the monthly rental payment is equal or greater than the full mortgage payment. To do this, the loan must be brought current.
  3. Sell your home – If the property is worth at least enough to pay off the mortgage debt, the homeowner may sell the home through a conventional home sale. This protects a homeowner’s credit score.
  4. Homeowner assistance program – We help those who want to obtain the equity earned in the property. To qualify, you will need to make payments starting immediately.
  5. Fresh Start program – “Cash for Keys” If you are unable to make payments you can surrender the property to us to handle for you. We will provide a portion of the equity in the property up front as a means to make a fresh start.