Your options, without the jargon.
Most preforeclosure situations start with one question: Is keeping the home realistic? From there, the path may involve catching up, working with the servicer, selling, or getting legal review. Below is what each option generally means — and what to check before deciding.
Pick a direction, then a tactic
Most decisions start with one of these directions. The right tactic depends on your timeline, income, equity, paperwork, and goals.
Try to keep the home
Reinstatement, repayment plan, forbearance, modification, or successor-in-interest review. Best when staying is realistic and the servicer path is still open.
See keep-the-home options ↓Sell or transition
Market sale, short sale, deed-in-lieu, or direct sale. Best when keeping the home is not realistic and you want to compare options before the sale date.
See sell-or-transition options ↓Keep-the-home options
These usually require contacting your mortgage servicer or trustee. Availability depends on your loan type, documents, deadline, payment history, and servicer review.
Reinstatement
Pay the amount needed to bring the loan current, including allowed costs and fees. In Arizona, reinstatement generally must be completed before 5:00 p.m. MST on the last business day before the trustee sale, using a payment form acceptable to the beneficiary or trustee.
Best when: the full reinstatement amount is available and you have confirmed written payment instructions.
Repayment plan
A servicer-approved plan that adds some or all past-due amounts to future monthly payments for a period of time. Terms vary by servicer and loan type and should be confirmed in writing.
Best when: the hardship was short-term and the regular payment plus catch-up amount is affordable.
Forbearance
A temporary pause or reduction in payments. It does not erase the missed amount. You need to understand how the paused payments will be handled afterward.
Best when: the hardship is temporary and you need short-term breathing room.
Loan modification
A servicer review for a permanent change to the loan terms. Possible changes may include capitalizing arrears, changing the payment structure, extending the term, or other investor-approved options.
Best when: the old payment is no longer affordable but stable income may support a modified payment.
Trial or hardship plan
Some servicers offer trial period plans or hardship programs before a permanent workout is approved. These plans often require exact payments by exact dates.
Best when: you can document the hardship and follow a written payment schedule.
Successor-in-interest review
For inherited or transferred property, the servicer may require documents to confirm who has authority to receive loan information or request options. Get the required document list in writing.
Best when: the loan is in someone else's name and you may have inherited or legally received an interest in the property.
Sell-or-transition options
These options may help avoid a trustee sale, preserve more control, or create a cleaner transition. Timing, equity, liens, property condition, and servicer approval matter.
Sell on the market
List with a licensed real estate agent. This can work well when there is equity, enough time, and the property can be priced realistically before the scheduled sale date.
Best when: there may be equity and enough time to market, contract, close, and resolve liens before sale.
Short sale
Sell for less than the loan balance, with servicer approval. The approval letter should explain how the shortage, release of lien, and any remaining debt issues are handled.
Best when: the home may be worth less than the total debt and there is time for servicer review.
Deed-in-lieu of foreclosure
Voluntarily transfer the property to the lender instead of going through the trustee sale. It requires servicer approval and should be reviewed carefully before signing.
Best when: selling is not realistic, reinstatement is not available, and the servicer offers terms you understand.
Direct sale or cash offer
Selling directly to a buyer or investor may close faster and require fewer repairs, but may produce a lower price than a properly marketed sale. Compare terms before signing.
Best when: speed, certainty, or property condition matters more than trying for the highest possible price.
Fees, contracts, and pressure tactics
Whatever option you choose, never sign under pressure. Some red flags appear in every direction.
- Anyone asking you to sign over your deed before you fully understand the transaction
- Upfront fees to “save” your home or “stop” foreclosure
- Pressure to stop communicating with your servicer
- Contracts with no clear price, deadline, buyer, or cancellation terms
- Anyone discouraging you from talking to an attorney or trusted professional
- Get every plan term, offer, and deadline in writing
- Track every call — date, name, department, and what was said
- Compare more than one path before deciding when time allows
- Verify licenses, company identity, and public records when applicable
- Talk to a qualified Arizona attorney for legal questions
None of these options are automatic.
Servicer programs, trustee sale deadlines, investor rules, equity, liens, and legal rights can all affect what is available. HRP can help you organize the facts and understand practical options, but legal, tax, bankruptcy, credit, and court questions should go to qualified professionals.
Confirm the timeline
Find the recording date, scheduled sale date, trustee name, and any postponement information before choosing a path.
Confirm the money
Know the reinstatement amount, payoff amount, estimated value, liens, taxes, HOA balances, and closing costs.
Confirm the paperwork
Get offers, payment instructions, approval letters, contracts, and cancellation rights in writing before relying on them.
That is exactly what a Home Retention Partner is for.
Send us your situation. We can help you sort the timeline, property position, documents, and realistic next questions before you make a rushed decision.
This page is for general educational purposes only. It is not legal, tax, bankruptcy, credit, mortgage, or financial advice. For legal questions, court filings, bankruptcy, objections to a trustee sale, deficiency questions, tax issues, or contract review, speak with a qualified professional.