3 Proven Solutions To Prevent Foreclosure

If you find yourself facing foreclosure, now is the time to take action with the assistance of a qualified real estate professional to advise and assist you in finding the right solution to your dilemma. As a Certified Distressed Property Expert® (CDPE) working on your behalf, I can evaluate your situation and identify potential pathways to save your home from foreclosure and rescue your family and your future at the same time.

In working with you, there are a number of different approaches the Mark Boyland Short Sale Team can take to resolve your difficulties. Briefly, consider these three proven solutions to prevent foreclosure, plus other options that some homeowners may have available.

1. Loan Modification

If you can show income sufficient to pay your current monthly mortgage, or can come close, your lender may approve you for a modified mortgage. A modification is very similar to a refinance — to lower the payments, your lender decreases the interest rate on your existing loan. Sometimes, they will reduce the principal on the mortgage. They may even do both. You must provide proof of income as well as your monthly expenses. As your CDPE, I can help you apply for modification. You may also seek inclusion in government-sponsored programs. Making Home Affordable, the federal program to assist homeowners in trouble includes the Home Affordable Modification Program (HAMP) and the 2nd Lien Modification Program (2MP).

2. Reinstatement or Forbearance

If you fell behind on your mortgage payments because of a temporary reason that is now resolved, you may be able to reinstate the mortgage, even as late as the scheduled bank sale date. You must obtain a detailed reinstatement letter from your lender and pay all missed payments, late fees and legal fees. This one-time payment will return your mortgage to good standing. 

If you are not in a position to make a one-time payment to reinstate, you may qualify for forbearance. This is a repayment plan that can reinstate the mortgage. You repay your missed payments over a period of time, or the lender may add them to the end of the scheduled loan amortization. This solution only works if you can provide verification of sufficient income. And if you miss a single payment during forbearance, the foreclosure may be resumed.

3. Short Sale

If you owe more on your property than its current market value, and one of the above solutions does not apply to you, a short sale may be the solution to your problems. You may also qualify for the government’s Home Affordable Foreclosure Alternatives Program (HAFA). Part of HAMP, HAFA offers incentives to servicers to streamline short sales and provides up to $3,000 in borrower relocation assistance to homeowners who successfully complete a HAFA short sale. The entire short sale process is detailed here.

Consider these other options that may be available, depending on your special circumstances. The Mark Boyland Team can help you explore your eligibility:

Sell the Property

If you have sufficient equity, you can cure the foreclosure with the proceeds from the sale of your home. This is an important time to seek CDPE assistance from professionals like The Mark Boyland Team. Without proper guidance you may choose to sell much faster than needed and receive less for your property.

Rent the Property

If your monthly mortgage payment is low enough, you can rent your property and maintain the mortgage payments while you live elsewhere.


With sufficient equity and income, and if your credit is not too badly damaged, refinancing is an option provided the property appraises for a sufficient amount. This only works if your financial health is permanent.


This involves refinancing the mortgage with a reduction in the principal balance. Reducing the interest rate may also be included. To qualify you must document proof of hardship along with sufficient income to pay your new mortgage.

Deed-in-Lieu of Foreclosure

Often called a “friendly foreclosure,” the homeowner turns over the deed to the bank, so the bank can avoid a lengthy foreclosure process. The bank may still report it as foreclosure to credit agencies and/or file a 1099 and obtain a deficiency judgment depending on the terms of the Deed-in-Lieu arrangement. In addition, if you have equity in the property, The Mark Boyland Teams advises against this alternative. You could ultimately walk away from significant cash.


This is a program of Fannie Mae contingent on the successful completion of a deed-in-lieu of foreclosure. It offers leases for up to 12 months that lets you remain in your home as a tenant provided you can pay the rent.


Only consider a last resort. It may stop a foreclosure and allow you to reorganize your finances and keep certain assets. What really may happen is the bankruptcy only delays the foreclosure and you may end up with nothing rather than something. For more details, see our section on Bankruptcy Or Short Sale.

Servicemembers Civil Relief Act (SCRA)

Military personnel are protected from foreclosure in specific situations under the SCRA. The law provides servicemembers other protections including:

  • Mortgage relief  
  • Termination of leases  
  • Protection from eviction 
  • 6 percent cap on interest rates 
  • Stay of proceedings
  • Reopening of Default Mortgages

Homeowners Assistance Program (HAP)

The Department of Defense helps eligible service members and federal civilians with financial assistance to eligible homeowners facing financial loss in areas where a base closure or realignment announcement has caused real estate values to decline. Authorized by Congress, it is administered by the US Army Corps of Engineers.

Remember, now is the time to take action — with the assistance of the Mark Boyland Short Sale Team. We’ll work with you and your mortgage lender to evaluate your situation and identify the tools and techniques to save your home from foreclosure and save your family and your future at the same time.

We have successfully closed short sales in Westchester, Putnam, Dutchess and Bronx counties.

To find out which solution may be best for you, talk to a member of the Mark Boyland Short Sale Team in strictest confidence. Call 1-800-244-6005 or fill in the form below:

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DISCLOSURE: The brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

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