Personal Loan

You pay off your arrears and get out of foreclosure. You will need to develop a plan to then pay off your current loan and your new personal loan as well. If you have access to this, it is a viable option to avoid foreclosure.

 

Agent Listing

You may have a realtor list your home on the open market to try to sell it. This option could achieve a higher profit but may take several months to accomplish and your home may go into foreclosure. 

 

Loan Modification

A loan modification is a change to your existing mortgage to make it more affordable. It usually changes your interest rate and loan term. It usually does not reduce your principal. You will need to consult your lender and be qualified to do this. Usually, a sudden and significant financial hardship (ex. disability, death of an income provider, divorce, natural disaster) is required to be approved for a loan modification.

 

Rental

You have the option to move out of your house and turn it into a rental unit. This means having a tenant move into your home and pay you a monthly rent to cover your mortgage. You would need to find a way to catch up your arrears and get out of foreclosure first.

 

Cash Offer

If you have lots of equity in your home, a cash offer can be made to buy your home so you can be done with the property and move onto the next chapter of life. This avoids foreclosure and you will have to find somewhere new to live.

 

Subject to/ Creative Financing

Subject to agreements and alternative creative financing methods are most often used to avoid foreclosure. You can get a higher price than cash offer buyers and yet still avoid foreclosure. 

 

Renovate and List

Another option similar to agent listing is the ability to renovate and list. If you want to sell your home at top dollar, you can undergo renovation and then list on the open market through an agent. This, again, would take several months to accomplish and the home would be foreclosed on, requiring you to reimburse the auction buyer before pocketing your profit.

 

Bankruptcy

Although it carries long-term consequences, filing for bankruptcy is another choice you have. Consult a bankruptcy lawyer if you believe this is your best route.