10 Alternatives to Foreclosure

Reblogger Dale Taylor
Real Estate Agent with Re/Max 10 New Lenox Illinois

Two realities about the climate of real estate in the Chicago Southland.  There is not a week that does by that I don't get a call from someone experiencing a challenge with paying their mortgage, and there are far too many Short-Sales in the marketplace for it to began to stabalize again. 

My respected Colleagues below have put together all the alternatives to foreclosure.  Please make sure you click on the Available Government Programs link provided below.  My Illinois Valued Clients please also click on this link - https://www.illinoishardesthit.org/.

Original content by Evelyn Bruder

Stop ForeclosureToday we want to pick up the conversation with some alternatives to foreclosure. This list is just part of our overall Foreclosure Resources that are available for free on our website

Other Alternatives to Foreclosure

Short Sale

If you owe more on your property than it is currently worth, by negotiation with your lender you can sell the property for a price less than you owe and consider this as satisfying your debt. This a common solution.The Short Sale Process

Government Home Owner Assistance Programs

The rising number of foreclosures in this country is simply too big to ignore. That is why a number of government-backed program have been created that aim to streamline foreclosure avoidance options.Available Government Programs


A reinstatement is the simplest solution for a foreclosure, but often the most difficult to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these.


Also known as a "friendly foreclosure," a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process.


A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back-payments over a period of time.

Rent the Property

This option does not require lender approval, but does require the homeowner's ability to rent the house for enough money to cover the monthly mortgage payment.

Servicemembers Civil Relief Act

If a member of the military experiences financial distress due to deployment-and their debt was entered into prior to deployment-he or she may qualify for relief under the Servicemembers Civil Relief Act.


Many believe bankruptcy is a "foreclosure solution," but this is only true in some states and situations. Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.


Refinancing means you will acquire a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments. Knowing that foreclosure can be avoided gives you the ability to develop a realistic strategy to plan for a future that is both financially stable and full of hope

The Homebuyers Toolkit


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Dale Taylor

Realtor = Chicago Illinois Homes Townhomes Condos
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