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18 options, three groups, zero hype
What Can Stop a Foreclosure? 18 Options Homeowners Should Know
Foreclosure does not always mean the homeowner has run out of options. This guide compares 18 legitimate foreclosure-prevention options across three groups: keep the home, sell or surrender it, or pause and buy time, with primary sources and the questions to ask first.
Last Verified: September 4, 2026
Educational resource
Reviewed by The Gary Lee Team before publication
In this guide
A foreclosure notice does not automatically mean the homeowner has run out of options. Depending on the loan, the property, the homeowner's finances, the foreclosure timeline, and the state where the property is located, there may be several legitimate ways to prevent, postpone, or resolve a foreclosure. Some solutions are designed to keep the homeowner in the property. Others allow the homeowner to sell or transfer the property before foreclosure. Still others may temporarily pause foreclosure long enough for another solution to be completed. The important distinction is this: stopping a scheduled foreclosure sale is not always the same thing as solving the underlying mortgage problem. The right strategy starts by determining what the homeowner is trying to accomplish and how much time remains.
Nothing in this guide is a guarantee. Every option below depends on the specific loan, the investor or insurer behind it, the servicer's processes, the state where the property sits, and the homeowner's situation. The goal of this article is to give homeowners and the professionals who help them a complete, honest map of what may be possible.
How to think about the options
Three buckets, one question: what is the goal?
The 18 options below fall into three groups. Each group answers a different question about what the homeowner is trying to accomplish, and each group has very different consequences.
Sell or surrender before foreclosure
Alternatives that avoid a completed foreclosure but generally mean the homeowner leaves the property.
Legally pause or delay foreclosure
Options that can create time for another solution but do not necessarily eliminate the underlying default.
Part 1 of 3
Options that may help you keep the home
These options share one goal: cure the default, make the mortgage affordable again, or satisfy the secured obligation so the foreclosure no longer needs to move forward. Whether any of them is available depends on the loan program, the investor, the servicer, and the homeowner's financial situation.
1
Reinstatement
Reinstatement means the homeowner pays enough to bring the mortgage current: the missed principal and interest, escrow shortages, certain fees and costs, and foreclosure expenses where permitted. Fannie Mae lists reinstatement as a standard foreclosure-prevention option in its mortgage assistance guidance.
If you can cure the default, foreclosure may no longer have a reason to continue.
Source: Fannie Mae, “Will mortgage assistance impact my financial future?”
2
Repayment plan
A repayment plan resumes the normal monthly payment plus an additional amount each month toward the delinquent balance. It works best when the hardship has improved and the borrower can genuinely afford more than the regular payment for a defined period. Freddie Mac and Fannie Mae both list repayment plans among the standard options borrowers can ask their servicer about after forbearance or a delinquency.
Source: Freddie Mac, “Understanding Forbearance and Knowing Your Options” and Fannie Mae, mortgage assistance guidance
3
Forbearance
Forbearance may temporarily reduce or suspend mortgage payments for an agreed period. Forbearance does not normally mean the debt disappeared: Freddie Mac warns that it postpones payments rather than forgiving them.
Read carefully: Forbearance can create breathing room, but the homeowner still needs an exit strategy for what happens when the forbearance ends.
The exit path may lead to a repayment plan, payment deferral, loan modification, a conventional home sale, or a short-sale process if a sale becomes the strategy. Whatever the path, it should be planned before the forbearance period ends, not discovered after.
Source: Freddie Mac, “Understanding Forbearance and Knowing Your Options”
4
Payment deferral
Payment deferral may move certain missed payments to the end of the mortgage instead of requiring immediate repayment. Freddie Mac describes it as moving outstanding missed payments to a non-interest-bearing balance that is due later. Fannie Mae describes qualifying deferred amounts as becoming payable when the home is sold, refinanced, transferred, or the loan is otherwise paid off.
This can be powerful for a homeowner who can afford the regular payment again but cannot manage a large catch-up payment all at once.
Source: Freddie Mac, “Understanding Forbearance and Knowing Your Options” and Fannie Mae, mortgage assistance guidance
5
Loan modification
A loan modification changes the existing mortgage rather than replacing it. Depending on the investor and the program, a modification may extend the loan term, reduce the interest rate, restructure delinquent amounts, or change the monthly payment. The CFPB identifies modification as a principal loss-mitigation alternative to foreclosure.
A modification may change the loan terms in a way designed to produce an affordable or sustainable payment, depending upon program eligibility.
Source: CFPB, “If I can't pay my mortgage loan, what are my options?”
6
Government-backed workout programs
Government-backed loans can have their own specialized foreclosure-avoidance programs. FHA, VA, USDA, Fannie Mae, and Freddie Mac borrowers should identify who owns or insures the mortgage because the available workout options can differ.
For FHA loans specifically, HUD lists home-retention tools including the Partial Claim, Loan Modification, Combination Modification and Partial Claim, and Payment Supplement, depending on eligibility and current FHA requirements.
7
Refinance
Refinancing may be possible for some borrowers, particularly when they still have adequate income, credit, equity, or access to an appropriate loan program.
A refinance pays off the delinquent loan before foreclosure is completed. It is not available to every borrower, and it becomes harder as the delinquency and credit impact grow, so it should be evaluated honestly and early rather than treated as a safety net. This is an option worth checking, not a promise.
8
Full payoff
Full payoff is different from reinstatement. The borrower pays the mortgage off completely: from savings or other funds, by selling the home and paying the loan off, by obtaining other financing, or through funds from another lawful source. Once the secured obligation is satisfied, foreclosure should no longer be necessary.
This is especially relevant for homeowners with substantial equity, where the property is worth meaningfully more than the total debt and transaction costs, and where a sale can satisfy the loan without the foreclosure process moving any further.
Part 2 of 3
Options that let the homeowner leave without foreclosure
These alternatives avoid a completed foreclosure, which can carry meaningful consequences for credit, deficiency exposure, and future homeownership. Generally they mean the homeowner leaves the property, ideally on planned terms rather than forced ones. Homeowners evaluating this group can start with the Need a Short Sale? Start Here page, which walks through the decision and the intake process.
9
Traditional sale with equity, checked before anything else
If the property is worth enough to pay the mortgage balances, any liens, closing costs, and selling expenses, the path may simply be a normal sale. Freddie Mac and Fannie Mae both identify a sale with equity as an alternative to foreclosure, and it should be evaluated before a short sale.
A homeowner should not do a short sale merely because a Notice of Default has been recorded. First determine whether the property actually has equity.
Gary Lee, The Gary Lee Team
Source: Freddie Mac, “Understanding Forbearance and Knowing Your Options” and Fannie Mae's mortgage assistance guidance
10
Short sale
A short sale may allow the property to be sold when the net sale proceeds will not fully satisfy the mortgage obligation, and the parties whose approval is required agree to accept the transaction. The CFPB identifies short sales as a form of loss mitigation and an alternative to foreclosure. The honest comparison between a short sale and a foreclosure and the way this platform supports the process are covered in How Short Sale Deal Maker Works .
Timing is everything: A short sale does not pause foreclosure simply because the property is listed. The foreclosure timeline and short-sale approval process must be coordinated.
California law also has a specific listing-based trustee-sale postponement mechanism under Civil Code Section 2924f for certain qualifying properties and circumstances, explained in Can a REALTOR® Stop a Trustee Sale in California?
Source: CFPB, “What is a short sale?”
11
Deed in lieu of foreclosure
A deed in lieu of foreclosure happens when the homeowner voluntarily transfers title to the mortgage holder rather than proceeding through foreclosure. The CFPB and Freddie Mac both recognize it as a foreclosure alternative.
This is not simply “giving the keys back.” It is a negotiated process. The mortgage holder generally must agree to accept the deed, and the agreement may involve junior liens, clear title, deficiency treatment, occupancy and relocation terms, and program eligibility. The terms should be documented in writing before the transfer.
Part 3 of 3
Options that may pause or delay foreclosure
These options generally do not resolve the underlying default by themselves. They create time, which can allow another solution to be completed, but time alone does not cure the mortgage problem. Some of these options carry significant costs and consequences of their own, and several require an attorney.
12
Bankruptcy
Bankruptcy is a legal remedy, not a real estate strategy.
Filing for bankruptcy generally triggers an automatic stay that stops most foreclosure activity while it is in effect. The federal courts identify foreclosure among the collection actions ordinarily suspended by the automatic stay. In some cases, Chapter 13 bankruptcy can allow the homeowner to catch up on past-due mortgage payments over time, subject to eligibility, court rules, and continued payments.
Several cautions matter. Creditors can sometimes obtain relief from the stay. Repeat filings can affect how stay protections apply. And bankruptcy has major financial and legal consequences that reach far beyond the mortgage, including the credit record, other debts, and property that is not exempt.
A real estate agent should never tell someone to file bankruptcy. A homeowner considering bankruptcy should speak with a qualified bankruptcy attorney.
Source: United States Courts, “Automatic stay” and Chapter 13 Bankruptcy Basics
13
Complete loss-mitigation application and federal servicing protections
Under the CFPB's Regulation X, if a qualifying complete loss-mitigation application is received more than 37 days before a scheduled foreclosure sale, specific evaluation and foreclosure-sale protections may apply. This is not a “submit a package and the foreclosure automatically stops” rule.
Federal servicing law can provide important procedural protections when a complete loss-mitigation application is submitted early enough, but the exact protections depend on timing, loan status, prior applications, servicer obligations, and applicable exceptions.
Source: CFPB, Regulation X Section 1024.41, Loss mitigation procedures
14
State foreclosure mediation or mandatory settlement programs
HUD emphasizes that foreclosure laws and timelines vary by state. Some states or local jurisdictions have mediation, settlement conferences, preforeclosure conferences, right-to-cure procedures, additional notices, mandatory waiting periods, or judicial review of the foreclosure itself. These programs do not exist everywhere, and their details, deadlines, and eligibility rules matter.
State law can create additional options
Some states require mediation, court conferences, or additional loss-mitigation procedures before a foreclosure can be completed. Others provide statutory cure periods or rights that do not exist elsewhere. Homeowners should never assume that a foreclosure rule they read about in California, Texas, Florida, New York, or another state applies nationwide.
For a deeper look at how a foreclosure timeline interacts with a short-sale file, see the foreclosure timing guide .
Source: HUD, “Avoiding Foreclosure”
15
SCRA protections for qualifying servicemembers
Military families may have additional rights
The federal Servicemembers Civil Relief Act provides foreclosure protections for qualifying servicemembers. For certain mortgages entered into before military service, a creditor generally must obtain a court order before conducting a nonjudicial foreclosure during the servicemember's military service and for a specified period afterward. Courts can also stay proceedings or adjust obligations.
Whether the protections apply depends on the specific facts of the service and the loan. Military families should contact military legal assistance, a HUD-approved housing counselor, or a qualified attorney to confirm.
Source: U.S. Department of Justice, Servicemembers and Veterans Initiative, Financial and Housing Rights
16
California's AB 2424 listing-based postponement
California only
California-specific option: Certain qualifying California residential properties may receive an additional 45-day trustee-sale postponement when the requirements of Civil Code Section 2924f(e) are timely satisfied through a qualifying California broker listing.
Read the full California AB 2424 guide , including what the law does and does not allow.
17
Negotiated foreclosure postponement
Sometimes the servicer, beneficiary, investor, or foreclosure trustee may agree to postpone a scheduled sale while a legitimate transaction or workout is pending: a short-sale review, a modification review, a payoff, a reinstatement, a pending closing, or a document review. This is voluntary lender or trustee postponement, not a guaranteed right. Unless a law or a binding agreement requires it, the decision belongs to the party holding the sale.
A written request with a clear reason, a realistic timeline, and evidence that the file is moving is far more likely to be considered than a bare request to “delay the sale.” Even then, the answer can be no.
18
Court injunction or legal challenge where the foreclosure is defective
A homeowner may sometimes seek a temporary restraining order, a preliminary injunction, or other court relief when there is an actual legal basis to challenge the foreclosure itself. This option belongs in the hands of a qualified attorney; real estate professionals should not be drafting foreclosure challenges.
If a homeowner believes the servicer, trustee, beneficiary, or other party has violated applicable law, an attorney may evaluate whether court intervention is available. Filing a lawsuit solely to delay foreclosure is not a legitimate substitute for legal grounds.
Quick reference
Does It Stop Foreclosure, or Buy Time?
One of the most useful questions to ask about any option is whether it resolves the mortgage problem or simply creates time for another solution. The table below summarizes what each option generally does.
| Option | What it generally does |
|---|---|
| Reinstatement | Cures default |
| Full payoff | Resolves mortgage |
| Refinance | Replaces old mortgage |
| Modification | Restructures mortgage |
| Repayment plan | Cures delinquency over time |
| Payment deferral | Moves qualifying arrears |
| Forbearance | Temporarily pauses or reduces payments |
| Equity sale | Pays loan through sale |
| Short sale | Avoids foreclosure through approved sale |
| Deed in lieu | Transfers property instead of foreclosure |
| Bankruptcy | May temporarily stay foreclosure |
| Loss-mitigation review | May create foreclosure protections |
| State mediation or cure rights | Varies by state |
| California AB 2424 | May postpone qualifying trustee sale |
| SCRA | Protections for qualifying servicemembers |
“Generally” is doing careful work in this table. Every row depends on state law, loan program, servicer process, and the homeowner's individual situation.
Flag these
Not legitimate: foreclosure “help” that is actually a scam
Some foreclosure “help” is not help at all. These approaches are kept out of the recommended list because they create serious risk for the homeowner. They are advertised in moments of fear, and they should be treated as red flags, not options.
High-risk or deceptive subject-to foreclosure-rescue schemes
Some subject-to arrangements are marketed to distressed homeowners as foreclosure rescues and can expose the seller to substantial risk when the existing loan remains in the seller's name, payments are not made, or material terms are misunderstood or misrepresented. Most mortgages also include a due-on-sale clause that can give the lender the right to call the loan due in full, so any proposed structure and its terms should be reviewed with qualified licensed professionals before a homeowner commits.
Equity-stripping rescue companies
Companies that offer to “rescue” the home, then take title or a large fee and strip the homeowner's equity, are a classic foreclosure-rescue pattern. Legitimate help comes from licensed professionals who document their work and put the terms in writing.
Signing the deed over to an investor who promises to save the house
The CFPB warns consumers about signing title away in foreclosure-rescue scams, where a “helper” takes ownership of the house and the homeowner often loses both the home and any equity.
Source: CFPB, “If I can't pay my mortgage loan, what are my options?”
Paid “forensic loan audits”
Expensive “forensic loan audits” are frequently sold as a way to stop a foreclosure. The CFPB flags foreclosure-rescue scams that charge for audits or loan-modification services and deliver little or nothing in return.
Source: CFPB, “If I can't pay my mortgage loan, what are my options?”
Just stop paying and wait
Stopping mortgage payments is not a strategy by itself. It can accelerate foreclosure, add fees and interest, and deepen the financial damage. Every legitimate option in this guide starts with knowing the true loan status and acting before the situation gets harder, not with ignoring it.
Read our short-sale fraud policy and what arm's-length really means , including the real federal and California cases behind the rules and the red flags the team watches for in every file.
Gary Lee's leadership view
The first question should not be “how do I stop foreclosure?”
The first question should be “what outcome am I trying to achieve?” The 18 options above do very different things: some keep the home, some leave it on planned terms, and some simply buy time. Choosing a strategy before defining the goal is how homeowners end up in the wrong process.
- Keep the home
- Sell the home
- Protect remaining equity
- Avoid a foreclosure
- Buy more legitimate time
- Move into more affordable housing
- Resolve multiple liens
- Pursue a short sale
Different goals require different strategies.
Our position
Short Sale Deal Maker does not believe every distressed homeowner should do a short sale. If reinstatement, modification, refinance, equity sale, or another legitimate alternative better achieves the homeowner's goal, that option should be considered first.
The short sale is one tool, not the only tool. The team's job is to help match the homeowner's goal to the right process.
Foreclosure law is different in every state
Foreclosure is governed by a combination of federal mortgage-servicing rules, the homeowner's loan program, investor requirements, and state law. Some states use primarily judicial foreclosure. Others commonly use nonjudicial foreclosure. Some states provide mediation programs, cure periods, redemption rights, mandatory conferences, or other protections that may create additional time or alternatives. A strategy available in California may not exist in Texas, Florida, New York, Nevada, or another state, and the deadlines can be dramatically different. Short Sale Deal Maker evaluates foreclosure and short-sale options based on the state where the property is located and the rules governing the specific mortgage.
Start the conversation the right way
Short Sale Deal Maker provides nationwide short-sale education, negotiation support, and foreclosure-alternative guidance. Because foreclosure law varies by state, state-specific legal questions should be reviewed with an appropriate attorney or housing professional.
California homeowners who need direct real estate representation for a short sale or distressed-property listing can work with The Gary Lee Team through SacramentoShortSale.com .
Meet the California Short Sale Team
California homeowners facing a short sale or scheduled trustee sale do not have to navigate the process alone. The Gary Lee Team at eXp Realty of Northern California, Inc. includes Gary Lee, DRE #01448722; Rutsell Fabillar Lee, DRE #02067791; and McKayla Ann Lee, DRE #02447334. For qualifying California properties, the team may serve as the listing team, provide short-sale negotiation and transaction support, or work alongside a homeowner's existing local California real estate professional when appropriate. The team serves homeowners throughout California, not only the Sacramento area. For direct California short-sale representation, start at SacramentoShortSale.com . ShortSaleDealMaker.com remains the team's separate short-sale education, negotiation, and professional-support platform.
For more guidance on foreclosure alternatives, short sales, and distressed-property files, browse the Short Sale Blog.
Primary Government & Industry Sources
Primary sources used in this article, linked without tracking parameters:
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Fannie Mae, “Will mortgage assistance impact my financial future?”
-
Freddie Mac, “Understanding Forbearance and Knowing Your Options”
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CFPB, “If I can't pay my mortgage loan, what are my options?”
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CFPB, Regulation X Section 1024.41, Loss mitigation procedures
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DOJ, Servicemembers and Veterans Initiative, Financial and Housing Rights
This article is for educational purposes only and is not legal, financial, or tax advice. Foreclosure rules vary by state and by loan program, and outcomes vary by situation. Consult licensed professionals, including an attorney or HUD-approved housing counselor where appropriate.
Last Verified: September 4, 2026