How to stop foreclosure: your real options
The main ways to stop a foreclosure are to catch up on the missed payments, work out a repayment plan or loan modification with your mortgage servicer, or sell the house before the foreclosure sale so the loan is paid off at closing. The sooner you act, the more of these options you'll have.
According to the Consumer Financial Protection Bureau (CFPB), the legal foreclosure process generally can't start until you are more than 120 days behind on your mortgage. Use that time to get help.
Talk to your servicer and a free housing counselor first
The CFPB says to call your mortgage servicer as soon as you know you can't make a payment, explain why, and ask for help avoiding foreclosure. Depending on your loan, options can include:
- Reinstatement: you pay all the missed amounts at once.
- Repayment plan: you pay extra each month until the missed payments are made up.
- Payment deferral: for some loans, missed payments are moved to the end of the loan.
- Loan modification: the loan terms change so the payment is affordable.
- Short sale: you sell the house for less than you owe, with the lender's approval.
Send a complete application early. The CFPB says a complete application sent early enough keeps the servicer from moving ahead with foreclosure while it reviews you. If a loan modification is denied and your application arrived at least 90 days before a scheduled sale, you may be able to appeal.
Free help is available. A HUD-approved housing counselor can build a plan with you and help you work with your mortgage company. Call (800) 569-4287, visit consumerfinance.gov/mortgagehelp, or use HUD's talk to a housing counselor page.
Watch for scams. The CFPB says you should not have to pay anyone to help you avoid foreclosure. Be careful of anyone who asks for money up front, guarantees you'll keep your home, tells you to stop paying your mortgage, or asks you to sign over your title. (We're a home buyer, not a foreclosure help service, and selling to us has no fees.)
Bankruptcy is a serious legal step. Only a bankruptcy attorney can tell you if it fits your situation and how it would affect a foreclosure.
Selling your house before the foreclosure sale
"Pre-foreclosure" usually means the time after you fall behind and before the foreclosure sale. You still own the house then, so you can still sell it.
If the sale price covers what you owe, your loan is paid off at closing. Ask your lender for a payoff statement early.
If you owe more than the house is worth, the lender has to agree to a short sale. The CFPB suggests asking the lender to waive any shortfall in writing before the sale.
If you have equity and months before a sale date, listing with an agent may bring you more money. A cash sale usually nets less than a retail listing when the house is in good shape and there's time to sell it.
When the sale date is close or the house needs work, a cash sale can be simpler. We can close in as little as 7 days, or on the date you pick.
Foreclosure in Florida, Texas and Alabama
Florida: foreclosure goes through the courts
- Florida law says "all mortgages shall be foreclosed in equity" (section 702.01). The lender has to file a lawsuit and get a judgment.
- The final judgment sets a sale date not less than 20 days or more than 35 days after the judgment, unless the lender agrees to a later date (section 45.031). The clerk of court runs the sale as a public auction, which can be online.
- You can pay what's owed and stop the sale until the clerk files the certificate of sale, or a later time if the judgment says so (section 45.0315).
- For a homestead, the judgment must tell the owner to check with the clerk within 10 days after the sale about any surplus money.
If you've been served with Florida foreclosure papers, talk to a local attorney about your deadlines. We buy in Sarasota, Bradenton, Tampa Bay, Orlando and Jacksonville.
Texas: most foreclosures happen outside of court
- The Texas State Law Library says judicial foreclosure is "rare in Texas." Most use a deed of trust with a "power of sale" under section 51.002 of the Texas Property Code. Home equity loans and reverse mortgages need a court process.
- For a home, the servicer must first mail a notice of default giving you at least 20 days to cure it.
- Then a notice of sale must be given at least 21 days before the sale: posted at the courthouse door, filed with the county clerk, and sent to you by certified mail.
- Sales are held on the first Tuesday of the month, between 10 a.m. and 4 p.m., at the county courthouse or a place the commissioners court sets. If that Tuesday is January 1 or July 4, the sale moves to Wednesday.
We buy in Killeen and the rest of Bell County.
Alabama: power of sale foreclosures
- An Alabama mortgage can include a power of sale, which lets the lender sell the house at a public sale without a court case.
- Before that sale, notice has to be published once a week for three weeks in a row in a newspaper in the county where the house is (section 35-10-13).
- Alabama law also gives some owners a right to redeem (buy back) the property after a foreclosure sale (section 6-5-248). The rules are technical, so ask an Alabama attorney whether it applies to you.
We buy in Birmingham and nearby.
Comparing your options
| Option | Do you keep the house? | What it takes | Keep in mind |
|---|---|---|---|
| Reinstatement | Yes | Paying all past-due amounts at once | You need the money in hand |
| Repayment plan | Yes | Higher payments for a set time | The loan may stay delinquent until you're caught up |
| Loan modification | Yes | A complete application and servicer approval | Apply early |
| Short sale | No | Lender approval and a buyer | Get any shortfall waiver in writing |
| List with an agent | No | Time to list and close before the sale date | Agent commissions |
| Sell to BigBuck Offers | No | A call or the form, then a closing date you choose | Usually nets less than a retail listing for a house in good shape |
How selling to us works
- Tell us about the house. Use the form on this page or call 1-844-348-9268.
- Get a cash offer, usually the same day we have the property details.
- Pick your closing date, as soon as 7 days or on the date that works for you.
We buy as-is: no repairs, no cleaning, no fees and no agent commissions. If the house also has unpaid property taxes, fire damage, or came to you through an estate, tell us. We can give you a cash offer either way.
FAQ
Can you stop a foreclosure by selling your house?
Selling before the foreclosure sale can stop it if the sale pays off what you owe at closing. If you owe more than the house is worth, the lender has to approve a short sale.
What does pre-foreclosure mean?
It usually means the time after you've fallen behind on the mortgage and before the foreclosure sale. You still own the house and can still sell it.
When are foreclosure sales held in Texas?
On the first Tuesday of the month, between 10 a.m. and 4 p.m., in the county where the property is.
Where can I get free help with foreclosure?
A HUD-approved housing counselor can help. Call (800) 569-4287 or visit consumerfinance.gov/mortgagehelp to find one near you.
Can you buy my house if the foreclosure sale is soon?
Tell us the sale date right away. We can close in as little as 7 days, but the payoff and paperwork take time, so earlier is better.
This page is general information, not legal or tax advice.
