First, Take a Breath
If you’re reading this, you’re probably scared, stressed, and tired of phone calls from collection agents. We’re going to lay out your real options, in plain language, with no sales pressure. Some of these don’t involve Quelark at all — we’re going to tell you about them anyway, because you deserve accurate information.
Option 1: Reinstate the Loan
If you can catch up on all back payments, late fees, and attorney fees before the scheduled foreclosure sale, most lenders will reinstate your loan. Ask your lender for a written reinstatement quote with an exact dollar figure and deadline. Many states require lenders to allow reinstatement up to 5 days before the sale.
Option 2: Loan Modification
Your lender may agree to modify your loan — reducing the rate, extending the term, or rolling missed payments onto the end. Contact your lender’s “loss mitigation” department (not the regular collections line). Be persistent; many homeowners get denied on a first application and approved on a second. This is free — you should never pay an up-front fee to a modification company.
Option 3: Forbearance
Temporary pause on payments, typically 3-12 months. After forbearance ends, missed payments are either added to the end of the loan, paid in a lump sum, or spread over a repayment plan. Useful when hardship is short-term (medical, job loss, natural disaster).
Option 4: Deed in Lieu of Foreclosure
You voluntarily give the property back to the lender in exchange for the lender releasing you from the debt. Faster and less credit damage than foreclosure, but typically only an option after you’ve tried to sell and failed.
Option 5: Traditional Sale
If you have equity and time, listing with an agent is often the best outcome. It requires the property to be shown, inspected, and closed through a bank-financed buyer — typically 45-90 days. If your foreclosure sale is in 30 days, there probably isn’t enough time.
Option 6: Short Sale
If you owe more than the property is worth, your lender may approve a sale below the mortgage balance (a “short sale”). This stops foreclosure, clears most or all of the debt, and causes significantly less credit damage than foreclosure. Expect 60-120 days from negotiation to close. Quelark can handle the negotiation with your lender on your behalf.
Option 7: Subject-To Sale to Quelark
If you have little or no equity but your mortgage is current or only slightly behind, Quelark can buy the property Subject-To the existing mortgage, reinstate it if needed, and take over payments from day one. This is often the fastest way to stop foreclosure proceedings because it puts payments back on track immediately.
Option 8: Bankruptcy (Last Resort)
Chapter 13 bankruptcy can stop a foreclosure sale and force lenders to accept a 3-5 year repayment plan. It preserves the home if you have income. Chapter 7 will not save the home long-term but can discharge other debt to free up cash. Only file bankruptcy on the advice of a licensed bankruptcy attorney.
Timeline Matters
The sooner you act, the more options you have. Once the foreclosure sale happens, only Option 8 (bankruptcy) can undo it — and that’s expensive and uncertain. If you are within 60 days of a scheduled sale, call Quelark or an attorney today.
Scams to Avoid
- Anyone asking for up-front fees to “guarantee” a modification.
- “Rent-to-own your own house back” schemes where you deed the property away with a promise you can rent and buy later.
- Bankruptcy “mills” charging high fees for paperwork you could file yourself.
- Anyone who calls you (not the other way around) and demands an immediate decision.
Quelark Never Charges Up-Front Fees. If someone claiming to work with us ever asks for payment up front, hang up and call our main number directly to verify.