Strategic Alternatives

Seek additional employment, rental income from a spare room, or liquidating non-essential assets to bridge the gap between your current income and the mortgage note.

Negotiate with your servicer to pay your regular monthly mortgage plus a portion of the past-due amount spread over several months until the account is brought current.

Stop the foreclosure process entirely by paying the total delinquent amount, including late fees and legal costs, in one single payment before the sheriff's sale occurs. Contact a financial advisor or attorney for guidance if you plan on using your 401K or other retirement funds.

A permanent restructuring of the mortgage contract which may include lowering the interest rate, extending the loan term to 40 years, or deferring a portion of the principal.

A temporary agreement where the lender allows you to pause or reduce payments for 3 to 12 months due to a specific crisis, with a plan to catch up later.

For homeowners aged 62 or older, this allows you to convert home equity into tax-free cash to eliminate monthly mortgage payments, provided you continue to pay taxes and insurance.

If the home's value exceeds the debt, selling the property traditionally allows you to pay off the bank in full and keep any remaining equity to start over.

With lender permission, the home is sold for less than the remaining balance. This is often preferred over foreclosure as it is less damaging to your future ability to buy a home.

Voluntarily transfer ownership to the lender in exchange for a release from the mortgage obligation and a cancellation of the foreclosure proceedings.

Selling the property privately or off the market is possible even if the value of the debt exceeds the value of the property with purchase strategies like seller financing or lease-to-own arrangements. Receive a cash offer or give us a call at 612-568-5005 to discuss your options.

Accessing state-specific or federal programs that offer a temporary safety net by reducing or suspending mortgage payments while you are actively seeking new employment.

Replacing a predatory or high-interest loan with a new mortgage that has more favorable terms, though this typically requires a stable credit score and existing equity.

Speak to a bankruptcy attorney. Filing for bankruptcy triggers an automatic stay, which legally stops a foreclosure sale and may protect your primary residence. It allows you to wrap your mortgage arrears into a 3-to-5-year court-ordered repayment plan.