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5 Potential Alternatives to Foreclosure - Reyes Law Group

5 Potential Alternatives to Foreclosure

Falling behind on your mortgage payments is easy to do. Whether you lose a job, run into some medical issues, or any number of other things, you can find yourself facing foreclosure surprisingly quickly. If you want to keep your home, you don’t have to view foreclosure as unavoidable. There are many options that you can take to help keep you in your home. Today more than ever, your mortgage company will likely be willing to work with you to help you keep your house, but you need to act quickly.

Reinstatement (Bring Your Account Current)

This is obviously the ideal option. By bringing your account current you will avoid bankruptcy, and set yourself up to keep your payments going until the house is paid off, or you’re ready to sell. Of course, it can be very difficult to come up with the money to cover all the past due payments, penalties, and any other fees that have been added on. If you can get help from family, or sell some assets, that may be an option to consider.  (By contrast, we would never suggest a hardship withdrawal from your 401(k) or other retirement account for reasons which we can explain in person!)

Loan Modification

Loan modifications are available to many people who fall behind on their payments. These modifications can either be sponsored by the mortgage company itself, or a variety of state or federal programs to the extent they still exist. In most cases, you will apply for the modification right through your mortgage company. If you qualify, you can not only avoid foreclosure, but reduce your interest rate and monthly payments while getting your account caught up.


In some cases you can consider refinancing your mortgage. This is a good option if you have a lot of equity built into your home because that will help you to qualify for the refinancing. If you don’t have a lot of equity, however, it may be difficult to qualify since you are already behind on your current payments.


If you fell behind on your mortgage due to a specific situation, such as losing your job, your mortgage company may help you to qualify for a forbearance. This is an option where your past due amount is moved to the end of your loan. Your loan can also be extended out further. This way you are immediately caught back up with your mortgage, without having to come up with the full amount due at once.


This is an option many people don’t consider, but it is actually very effective. If you file for bankruptcy, the foreclosure process must stop while the bankruptcy goes through the courts. This will buy you some extra time to figure out how to keep your house. In many cases, the bankruptcy itself can also help you to get your payments caught up or restructured so they are more affordable.

You Have Options | We can Help

While getting a foreclosure notice is certainly a scary thing, you do have plenty of options to consider. Contact the Reyes Law Group to go over all your options and see what the best course of action is for your specific situation.

Written by Reyes Law Group