Stopping Foreclosure Fast

Mia Arnold

Hey everyone, welcome back to Before the Auction. I’m Mia, and I’m here with Don DeRosa our resident expert. Today we’re diving into something that, honestly, keeps a lot of people up at night—how to stop foreclosure, and how to do it fast. Don, I know you’ve seen just about every scenario out there. Where do you usually start when someone calls you and they’re, like, days away from the auction?

Don DeRosa

Yeah, Mia, the first thing I always look at is, can we sell the house quickly? I mean, if there’s equity, that’s usually the fastest way to stop the gavel from coming down. You don’t have to go through the whole listing process, no open houses, no repairs—just a direct sale to an investor. We can close in days, not weeks. And, you know, no commissions, no hassle. That’s a big relief for a lot of folks.

Mia Arnold

Right, and I think a lot of people don’t realize that selling as-is to a local investor can actually be a win, especially if you’re short on time or cash. But what if someone owes more than the house is worth? Like, they’re underwater—what then?

Don DeRosa

That’s where short sales come in. If you owe more than the home’s value, you can negotiate with the lender to accept less than what’s owed. It’s not always easy, but it’s doable, especially if you have someone who knows how to handle the paperwork. And then there are creative options—like, sometimes we’ll do a subject two purchase, where we take over the existing payments. Actually, I had a family once, they were about to lose their home, and we did a subject-to deal. They got to stay in the house for a few months while they figured things out. It wasn’t a forever solution, but it gave them breathing room. That’s the kind of thing you just can’t get with a traditional sale.

Mia Arnold

That’s huge. I mean, just having a little extra time to regroup can make all the difference. And I love that you mentioned leasebacks, too—sometimes people just need a soft landing, not a total upheaval. So, bottom line, if you’re facing foreclosure, selling fast—whether you’ve got equity or not—can be a real lifeline. But it’s not the only option, right?

Don DeRosa

No, not at all. Sometimes, if you want to keep the house, you can work directly with your lender. The first thing is loan reinstatement—if you can catch up on all the missed payments, late fees, and legal costs in one shot, the lender will usually stop the foreclosure. But, let’s be honest, that’s a tall order for most people. Not everyone has that kind of cash lying around.

Mia Arnold

Yeah, and even if you do, it can feel like you’re just barely treading water. What about loan modifications? I hear about those a lot, but I’m not always sure how realistic they are, especially if you’re already behind.

Don DeRosa

Loan mods can work, but they take time. The lender might lower your payment by stretching out the loan or adjusting the interest rate. But if you’re close to the auction date, it’s tough to get approved in time. And not every lender is willing to play ball, especially if you’ve missed a bunch of payments. You’ll need to show income, hardship letters, bank statements, tax returns—the whole nine yards. It’s paperwork city.

Mia Arnold

And then there’s forbearance, right? That’s where the lender lets you pause or reduce payments for a while. But, I mean, when the forbearance ends, you still owe all that money, sometimes in a lump sum. That can be a shock if you’re not ready for it.

Don DeRosa

Exactly. And refinancing—well, if your credit’s already taken a hit, that’s a long shot. Repayment plans are another option, but again, you’ve gotta prove you can make those extra payments. It’s all about documentation. If you’re organized and your income’s stable, it might work. But if not, selling might still be the better move.

Mia Arnold

So, if you’re thinking about negotiating with your lender, just know it’s possible, but it’s not always quick or easy. And you’ll need to get your paperwork in order—bank statements, pay stubs, hardship letters, all of it. If that sounds overwhelming, you’re not alone. But there are other tools out there, too, right?

Don DeRosa

Yeah, sometimes you need to pull out the big guns. Filing for Chapter 13 bankruptcy can stop a foreclosure immediately, thanks to what’s called an automatic stay. That means the lender has to hit pause, at least for a while, while you work out a repayment plan through the court. But, I gotta say, this isn’t a magic fix. Bankruptcy has long-term consequences for your credit and finances, so it’s not for everyone.

Mia Arnold

And that’s where having the right help really matters. Whether it’s a bankruptcy attorney, a HUD-approved housing counselor, or even an experienced investor, you don’t have to figure this out alone. I remember, Don, you told me about a homeowner who was just out of options, and bankruptcy was the only thing that bought them enough time to regroup. Can you share a little about that?

Don DeRosa

Sure. There was a woman who came to me, just days before the auction. She’d tried everything—modifications, forbearance, you name it. We talked through her options, and ultimately, she filed for Chapter 13. That gave her a few months to get her finances in order and, honestly, just breathe. She ended up selling the house on her own terms, not the bank’s. Sometimes, just having a little time and the right advice makes all the difference.

Mia Arnold

That’s such a good point. No matter how tough things look, there are always options—sometimes you just need someone to help you see them. So, if you’re facing foreclosure, don’t wait. Reach out to a pro, get the facts, and make a plan that works for you. Don, any last thoughts before we wrap up?

Don DeRosa

Just remember, the sooner you act, the more options you have. Whether it’s selling, negotiating, or getting legal help, don’t go it alone. There’s always a way forward.

Mia Arnold

Absolutely. Thanks for joining us on Before the Auction. We’ll be back with more ways to help you find options—before the gavel falls. Don, thanks for sharing your wisdom, as always.

Don DeRosa

Thanks, Mia. Always a pleasure. Take care, everybody.

Mia Arnold

See you next time!