Are you in a Financial Crisis? 3 Options to Help Stop Foreclosure

If you have received an official letter from your financier indicating that the entire mortgage is past due, it can be overwhelming to try to stop a foreclosure. You may have already started to trust that there is nothing much that can be done to help you when you’re in such a situation. Although such a situation can be depressing, you have some alternatives that can help prevent foreclosure and save you from damaging your credit.

last updated Sunday, July 13, 2025
#COMMERCIAL HARD MONEY LOANS #hard money loans to stop foreclosure

by John Burson

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Option 1. Use Commercial Hard Money Loans

Accessing commercial hard money loans is an option to consider if you want to prevent foreclosure. Most people aren’t familiar with commercial hard money loans because they differ slightly from conventional loans. Commercial hard money loans typically have higher interest rates and less favorable terms. However, you will still have the chance to retain your home. Keep in mind that this should be the last option.

You will most likely qualify for funding from commercial hard money loan lenders if your property is considered to have substantial value. You may not qualify for commercial hard money loans if the property is old, run-down, and requires expensive repairs. Commercial hard money loan lenders typically structure their loans based on whether they can recover their investment if they have to foreclose. These lenders work with commercial hard money loan borrowers who are experiencing financial crises. Therefore, foreclosure is more likely to occur. Although commercial hard money loans aren’t ideal, they can help you avoid impending foreclosure.

Option 2. Perform Loan Modification

Even when your bank has made you believe they will foreclose your property, they will usually still be willing to work with you. Therefore, ensure that you speak to a representative from your bank. They can modify your mortgage and include favorable terms that can benefit you. Sometimes you can negotiate with your bank to lower the interest rates and payments, or even change the repayment agreement by restructuring old balances.

Option 3. Consider Short Selling

Instead of letting your bank foreclose on your property, you can request that they short-sell your home. Although this can lead to your home being sold for an amount that is less than the loan you owe your bank, doing this can avoid a foreclosure on your record.

NOTE:
You can also avoid foreclosure by using your 401(K) funds.