How to Stop a Foreclosure: 5 Ways to Stop Foreclosure Immediately and Save Your Home

• Facing foreclosure is distressing, but there are solutions

• Exploring alternative strategies can halt proceedings and potentially save your home

• The experienced team at OakTree Law can help you understand how to stop a foreclosure and get back on track financially

The distress of foreclosure can be overwhelming. If you’re struggling to meet your mortgage obligations, it can feel like there’s no way to avoid losing your home or ending up in financial ruin. A sudden illness, job loss, divorce, death in the family, unexpected repairs, or a spike in interest rates can all send you into a spiral of missed payments and threats from your lender.

Once you’ve missed three or more consecutive payments and you receive a Notice of Default (NOD) from your lender, it’s important to know you still have options. Here are 5 strategies to help you figure out how to get out of foreclosure and potentially keep your home.

1. Negotiate a Compromise

Most lenders would prefer to avoid taking possession of your home, so negotiating with them is the first step to figuring out how to stop a foreclosure. You may be able to arrange a forbearance that temporarily removes or reduces your payments, or your lender may agree to freeze your interest rate or alter your terms.

2. Seek a Buyer

Even if you’ve received a NOD, you can still stop a foreclosure sale by finding a buyer on your own. The only caveat is that the sale must be closed before an auction is scheduled. This is called a short sale if the buyer’s offer is less than the total amount owed, but it can still be attractive to lenders because they’ll avoid the cost of following through on foreclosure.

3. Pursue a Deed in Lieu of Foreclosure

While a short sale is appealing, what if you’re wondering how to get out of foreclosure while staying in your home? With a deed in lieu, you voluntarily surrender your home to the bank or lender. This option puts a big hit on your credit, and lenders don’t always agree to it, but to boost your chances of acceptance you can provide concrete proof that:

• You’re in financial distress
• You’re voluntarily offering the deed
• You’ve tried, and failed, to sell the home

4. Explore Buyer Assumption or Leasing

When reviewing how to stop a foreclosure, the assumption option is often overlooked. If a buyer agrees to assume your payments and the lender agrees to modify the loan and remove their “due on sale” clause, you can stop a foreclosure sale.

Similarly, one of the other ways to stop foreclosure immediately is to lease your property. If the rent you collect covers your mortgage payment, property tax, and insurance, it can end foreclosure while you maintain ownership.

5. Consider Bankruptcy

When you file for bankruptcy, you’re protected under federal law. Debt collectors can no longer pursue foreclosure. While this may seem drastic, it’s a viable option when considering how to stop a foreclosure and reset negotiations.

Lean on OakTree

If you’re unsure of how to stop a foreclosure through bankruptcy or other alternatives, the team of foreclosure attorneys at OakTree Law can help. We’ve secured over $500 million in relief for Southern California clients struggling with debt. Reach out for your FREE consultation today.