Here Are Some Options When You Have Equity (When the balance on the mortgages is less than the current market value of the home):

• Restructure the loan with your lender. They might be able to move your back payments to the back end of your loan. Lenders call this a 'forebearance'. We recommend calling your bank and trying to work something out with them before taking any other action
• Sell your home to an investor who brings the loan current and pays you cash for part of your equity. This will avoid some of the damage to your credit that occurs if your home goes to auction. Don't expect anywhere near market value for your home because the investor expects to make a profit on the resale.
• Short term financing to bring the loan current and reinstate the loan. Borrow from friends or family. Consider an arrangement where they help bring the loan current in exchange for an equity position in the property. You could then list the home for sale and split the profits or stay in the property and they will share in the appreciation when the home is sold or refinanced. Generally, conventional lenders will only loan up to 60-70% of the value of the home when it is in foreclosure, plus the fees and rates are so high that it is a last resort.
• Consider applying for one of our rent-to-own houses once you decide on an approach for dealing with your foreclosure. We don't approve everyone with a foreclosure, but if you have a solid plan and great income history we might be able to work with you.

Here Are Some Options When You Have No Equity (When the balance on the mortgages is more than the home's current market value):

• Restructure the loan with your lender. They might be able to move your back payments to the back end of your loan. Lenders call this a 'forebearance'. We recommend calling your bank and trying to work something out with them before taking any other action
• Sell your home as a 'short sale'. This is when the bank agrees to accept less than the full balance of the loan to allow the sale of the home go through. Discuss this with your CPA first, because there could be major negative tax consequences when using this option. Your credit will also suffer.
• Sell your home with creative financing. We don't recommend selling on a rent-to-own basis when you are in foreclosure, but there are other methods that a seasoned investor can help you with. Always discuss this solution with an attorney first so you know the risks. Investors are experts, you might not be, so proceed with caution.
• Consider applying for one of our rent-to-own houses once you decide on an approach for dealing with your foreclosure. We don't approve everyone with a foreclosure, but if you have a solid plan and great income history we might be able to work with you.

"What Are My Options?"
Tell us your situation and we'll help if we can.