Waymark Property Solutions LLC

Facing foreclosure

Foreclosure is a process, not an event.

If there's an envelope from your mortgage company sitting unopened on the counter, take a breath. It isn't happening today. You almost always have more time than you think, and more options than you think.

Falling behind isn't a character flaw. A layoff, a medical bill, a divorce, a death in the family: it's math that stopped working for a while. Melissa has sat at the kitchen table with hundreds of homeowners in exactly this spot.

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Two paths, same destination

Every state forecloses one of two ways, and knowing which one applies to you tells you roughly how much time you have.

Judicial foreclosure goes through court. You're served with a lawsuit and a response deadline. Courts move slowly, so this path usually takes longer and gives you more chances to negotiate.

Non-judicial foreclosure has no judge. A trustee named in your loan papers follows the state's checklist of notices, ending in a public auction. It moves much faster, and the notices in your mailbox may be your only warning.

Your state decides which path applies, and the deadlines can differ by months from one state to the next. Your exact timeline depends on your loan and your notices, so confirm it with a housing counselor or attorney.

How to tell which one you're on

  • Check what you signed at closing. A "deed of trust" usually means non-judicial; a "mortgage" usually means judicial. Treat it as a clue, not a guarantee.
  • Look at the mail. A summons and court petition means judicial. A notice of default or notice of trustee's sale means non-judicial.
  • Ask. Your servicer, a HUD-approved housing counselor, or a local attorney can tell you, along with your state's exact rules.

Not sure? Bring your paperwork to us or to a housing counselor and we'll help you understand where you stand.

There are at least 11 ways through this

Some keep you in your home. Some let you leave on your own terms, with your dignity and your finances intact. Here are four of them.

  1. Option 1

    Reinstate the loan

    Catch up on what's past due and the foreclosure stops. Sometimes it's paired with a creative agreement that makes the numbers work.

  2. Option 6

    Sell to an investor

    Sell before the sale date, often as-is, and walk away without a foreclosure on your record.

  3. Option 7

    Short sale

    Owe more than the house is worth? With your lender's approval, you may be able to sell for less than the balance.

  4. Option 11

    Surplus funds after the sale

    If the house sold at auction for more than was owed, the difference may belong to you. It doesn't arrive on its own, and many people never claim it.

  5. + 7 more

    The rest are in the guide

    Including options lenders rarely bring up, which ones work before the sale and after it, and what each really costs.

Free guide

11 Options When Facing Foreclosure

Plain talk from Melissa Hall on how foreclosure works, where you likely stand on the timeline, and every option available to you, before and after the sale. No legal jargon, no scare tactics.

The full book, 11 Options When Facing Foreclosure: Homeowner's Guide, is coming soon to Amazon.

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Want to talk it through?

You don't have to finish reading before you reach out. A no-cost, no-obligation conversation about your options, with no pressure and no judgment.

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This page is general information, not legal or financial advice. Foreclosure rules vary by state and by loan.