Why Hire a Foreclosure Attorney and What To Look For

Foreclosures are complicated and highly emotional. If you want to fight a foreclosure to save your home and improve your financial well being, consider working with a foreclosure attorney.

Finding the right foreclosure attorney is easier if you know the standards which competent foreclosure attorneys should meet.

Why Hire a Foreclosure Attorney?

While it’s possible to represent yourself in foreclosure proceedings, it’s not advisable.

  • You need a thorough understanding of foreclosure laws in your area. Lenders are not interested in helping you stay in your home. They only care about protecting their interests. Not all comply with federal mortgage servicing rules or follow state foreclosure procedures; but without relevant expertise, you wouldn’t know this, and lenders won’t admit fault!
  • You have precious little time to respond, do research, file the correct paperwork, and prepare before the court date. You won’t get any special dispensation from the court just because you are representing yourself!

When To Hire a Foreclosure Attorney

Don’t wait until it’s too late, because often, it will be too late.

While federal law states that a lender cannot initiate foreclosure proceedings unless a homeowner has missed 4 payments, don’t wait. Schedule a consultation even if you have fallen 1-2 months behind and it’s clear you can’t catch up or make future payments. An attorney can negotiate with the lender to obtain a loan modification and avoid foreclosure.

If foreclosure proceedings are in motion, you’re more likely to lose your case if you represent yourself because you won’t be on equal footing with well-represented lenders.

What To Look For In a Foreclosure Attorney

Do your due diligence on foreclosure attorneys, including obtaining references from past clients. Look for:

  • Clear and concise communication. It’s your attorney’s job to inform you about what to do and expect before, during, and after a foreclosure, explain legal terms in English, and help you understand the consequences of choices.
  • Transparency about the scope and cost of representation, and how you will pay for it.
  • An attorney who puts your interests first, upholds client confidentiality, acts professionally and ethically within the limits of the law, meets all deadlines, and files all paperwork correctly in compliance with local rules and procedures.

What To Do If You Can’t Afford an Attorney

If you can’t hire an attorney to represent you through the entire process, consider a consultation to understand your choices and your legal rights and responsibilities. If you meet certain criteria, a legal aid office may be able to help.

When Things Don’t Work Out

Try to resolve problems with your attorney to avoid wasting precious time searching for a new one. The proceedings won’t wait so you need to act fast.

Most problems are due to misunderstandings. Ensure clear and timely communication with your attorney and make sure you understand legal terms or requirements.

Reasons to fire an attorney include:

  • Unethical behavior
  • Lack of communication
  • Failure to meet deadlines or show up in court


Being served with a foreclosure notice is devastating. Shock, anxiety, and overwhelm can paralyze you into inaction, which is the worst thing you can do.  You want to take all measures to get out of the foreclosure process.

Schedule a consultation with a foreclosure attorney. Know your options. Educate yourself, but don’t try to go it alone. To lenders, your home is just an asset. To you, it’s home – and a foreclosure attorney will work with you to secure your home and enhance your future financial well being.

What is a Non Jury Trial and How Does it Affect my Foreclosure?

A non-jury trial is a trial in which the judge alone decides the outcome. When it comes to foreclosure trials, most are non-jury.

Several factors play into whether or not you can get a jury in your foreclosure case.

  1. Check whether your states allow juries in foreclosure cases. In most states, a foreclosure is considered “equitable” relief,” meaning a remedy granted only at the court’s discretion. The lender must convince the judge to grant the foreclosure. However, if the lender is acting unethically, a successful equitable defense can halt the proceedings.
  1. If your state does allow a jury trial, you will need to determine if your foreclosure is nonjudicial or judicial. In a nonjudicial foreclosure, the lender does not have to go to court in order to foreclose on your home, and it’s often a much faster process than judicial foreclosures that go through the courts. The lender can choose the foreclosure type depending on the options afforded by state law where the property is located as well as the circumstances of the foreclosure.
  1. Finally, even if you do have the right to a jury trial under your state law, check your loan documents because you may have signed away this right by agreeing to a “jury trial waiver” when you took out your loan.


In general, it is not advisable to defend yourself in a foreclosure case. Consult with a foreclosure attorney in your state to find out what your options are, whether you signed away your rights to a juried trial and if that’s the case, how to get a jury to hear the case, and how to demand a jury before the case goes to court. Timely and accurate filing of documents is of the essence, and your options may be limited by local regulations, so it’s in your best interest to work with a foreclosure attorney.

You may be able to file your own lawsuit to get the foreclosure into court, if you believe that this will help you. This does not, however, guarantee you the right to a juried trial, only that the court is now involved.

Assuming that the lender’s attorneys have done everything correctly and in the absence of a jury, the judge will grant judgement, and the auction date will be placed for 30 days out. It may be possible for your attorney to postpone the trial or move to cancel it, giving you a 120-day auction extension in order to work out a modification or short-sale the property. If you’re facing a trial date and need more time to prepare a defense, close a short sale, obtain a loan modification or leave the property, your best option may be bankruptcy. Filing for bankruptcy (Chapter 7 or 13) will cancel the foreclosure trial, which may give you enough time to explore alternative options.

Having an attorney does not guarantee a better outcome, but not having one almost guarantees judgement against you. Work with an attorney who finds solutions, not just delays.

If Having No Equity, Why Is A Loan Modification Not The Best Solution?

When a homeowner is facing foreclosure and owes more money than the properties current value in the market, they’re underwater. When this happens, families often seek other options attempting to avoid a foreclosure sale. It’s especially hard when a homeowner has no equity in the property because certain opportunities just won’t make sense. For example, people often suggest a loan modification as a solution to their problem. However, there are many reasons why this approach is not a good idea. Let’s explore this a little further.

If they’re facing foreclosure, they will have equity in the home or they won’t. If the owner has equity, it means the homeowner controls a portion of its value. The owner can determine this by subtracting the outstanding balance due with the current property market value. If on the other hand, the home is underwater, the owner does not control a portion of its value.

Loan modifications are tools lenders will use to restructure a mortgage payment in a way that’s more manageable for the homeowner. It’s useful under specific circumstances when homeowners are looking to keep their credit in good standing. If a family is dealing with a hardship banks will consider renegotiating. However, in today’s market, the banks have stringent restrictions in place making loan mod approvals more difficult. In fact, currently, banks are only approving 20% of homeowners in the situation.

People fail to understand loan modifications come at a very high price. While a bank may try to adjust your monthly payments making them more manageable, the difference will just add on to the end of the loan. In fact, it will include additional interest. If you have no equity or think of it as a controlling stake and in the home, it makes absolutely no sense. Why pay an even higher premium for something that won’t even touch the principal for many more years?

Loan modifications would once again lock down the family for many years to come with a modified payment structure that may once again become difficult down the road. Essentially, you are back to a situation that is similar to renting but at a premium price.

A far better option would be to consider a short sale. Short sales are used to help remove the family from the home and the burden of the debt that is attached. With a short sale depending on how it’s structured can relieve the family from the liability. In fact, banks are happy to work with this process because they would like to have somebody take over the mortgage and continue with the original payment plan. This process would also offer a fresh start for the current homeowner.

In conclusion, a loan modification doesn’t eliminate the money still owing. The difference will just be added onto the mortgage at the end resulting in paying even more money. It doesn’t make sense to pay a premium locking payments into many more years when the homeowners have no stake in the property. A short sale is a far better option to pursue.

Why Only 20% Of Homeowners Get Approved For Loan Modifications

The term loan modification became quite the buzzword for a while after the 2008 home crisis. It became very popular because of the government programs focussed on keeping people in their homes. Fast forward to today, and the economy has improved significantly yet people are wondering why only 20% of homeowners get approved for loan modifications in today’s market. We’re going to have a look at why this is the case.

A loan modification is where the lender agrees to modify the terms of a homeowners contract also known as a mortgage. The idea is to implement strategies to lower the monthly payment structure making the home more affordable and avoiding foreclosure. There are specific criteria a homeowner is required to meet to qualify. These terms must satisfy the bank’s legal lending requirements and still make it worthwhile for the homeowner.

Not long after the crisis, the government implemented the Hamp program (Home Affordable Modification program). This program is no longer available, but the idea was to help homeowners modify their payments in a way that was affordable. These programs were also designed to help stabilize the economy during that challenging stage. However, today the economy has improved a great deal, so the plans have been shut down.

When homeowners qualify, the lending institutions will typically lean on three main strategies to move forward while minimizing their risk in the process.

The first strategy is setting up a repayment plan to get the homeowner back on track from the previously missed payments. It can be useful if a family has the option to make up the payments. If it’s too difficult to achieve, the bank may disqualify them.

The second strategy is something called interest rate reduction. The lender will attempt to re-underwrites the terms to determine if the new payments would be viable using an income to debt ratio. If the new payment structure does not fall into the correct ratio, the homeowners will not qualify.

The third and popular method is extended aromatization. This strategy is where the lender will extend the terms over a longer period. For example, the lender may take a standard 30 year amortization period and spread it over a 40-year plan. Again, if a lender decides this is too burdensome for families they will be turned down.

The bank’s objective is to work with candidates that can continue to make consistent payments over an extended period without disruption. The lender must also adhere to its strict regulation but yet keep default rates low. If a bank has a high default rate, the bank will likely have a lower lending cap the following year making it even harder for the next person. The higher home values and recovering economy has contributed to the lower approval rate with loan modifications. Also, banks are utilizing stricter guidelines in their qualification process.

To conclude, loan modifications aren’t always the best option because the family is going to pay a lot more over an extended period. In essence, the homeowner is still maintaining a high level of risk, plus spending more money long-term while not contributing to their equity. If instead, a homeowner chose a more suitable option such as getting out from under the debt, It would likely be more fitting for the family long-term. The homeowner can utilize tools such as short sales or even selling the home for cash escaping foreclosure and the debt.

There Is No Such Thing As Foreclosure Defense!

A big dream for families is to be in a position to own their own home finally. However, nobody said it was easy and sometimes unexpected events happen to cause families to miss payments with their lender. When the families miss three consecutive months in a row their lender is in a position to file for foreclosure on the property. Foreclosure defense attorneys can approach these families offering a defense. Let’s take a look and see why there is no such thing as foreclosure defense.

It’s not easy for families having to go through the foreclosure process, so it’s helpful to have a general understanding of the process. It basically breaks down into three main elements.

The first element is when a homeowner stops making payments to the bank. The bank will contact their attorneys and have them file with the local courthouse for something called a lis pendens. This process opens an official lawsuit against the homeowner.

The second element is when the court issues a summons. The homeowner has 20 days to respond to it. It is an official mandate where a representative from the bank and homeowner must appear in Court giving the homeowner a chance to explain why the bank and court should not foreclose on your home. For example, the reasons could be the homeowner is possibly working on a sale or attempting to modify their loan.

The third element is the final judgment. It’s when the court sets the final date where the home will go up for sale at auction.

There is also an opportunity for the homeowner to ask for an emergency postponement which must be submitted five days out from the auction.

There are pros and cons to hiring attorneys for a foreclosure situation. However, it’s not necessary to hire an attorney that requires substantial retainer fees or even lawyers looking to build a defense case towards the bank for your foreclosure situation. The homeowner will need as much time as possible on their side during these sensitive times. Homeowners can receive interest penalties, and many additional fees tacked on to their remaining balance owed. For this reason, it does not make a lot of sense to pay money to an attorney if it will only lengthen the process even more.

There are situations where foreclosure defense attorneys may approach a family looking to build a defense case for them against the lender. Furthermore, they may make offers to stop the foreclosure process and even suggest options such as bankruptcy. The problem with these alternatives is that they cost the homeowner in an exorbitant amount of additional money when the focus should be on getting out of foreclosure and saving your credit for the future. Attorneys offering these approaches generally do not have the homeowners best interest in mind.

If the lender is going through the courts and following proper procedure, no foreclosure defense makes sense to pursue. Working with an experienced real estate team will work to help you escape foreclosure and the negative consequences that can come from foreclosure long-term. There are many options available to remove the homeowners from the debt and help them get a new start. Working with a sound investment team will allow you access to top attorneys that do not charge retainer fees and only charge for the service that is required. Additionally, these attorneys work alongside investment deals all the time.

To conclude, there is no such thing as foreclosure defense. The legal process for foreclosure can be broken down into three main elements. Attorneys may approach homeowners offering a defense, but it doesn’t remove the homeowner from the problem efficiently. Working with a strong investment team can get the family out from under the debt where they can have a new start.

Foreclosure Defense Attorneys Are Just Taking Homeowners Money!

It’s not uncommon to hear of families facing foreclosure attempt to reach out to an attorney. There’s certainly a time and place for everything especially in extreme situations, however, in most cases hiring an attorney for foreclosure isn’t necessary. Many attorneys may tell you different but let’s look at why this might not be a good idea. It is essential for you to understand your options because you’ll want as many options available to you as possible and the more time that passes, the harder everything becomes.

A foreclosure defense attorney may offer valuable services in certain extreme circumstances when a family has very few options available to them, but this isn’t the case for the majority. Knowing this is useful information because in many situations hiring one is entirely unnecessary and the homeowner can be wasting a lot of money from their bottom line. Understandably many families are confused during this stage because it is overwhelming and there’s a lot to learn in a short amount of time. However, there are only a handful of options available to anyone under the circumstances.

Let’s first take a look at what the stages would be for a typical defense attorney when they take over a foreclosure situation for a family. The first thing the lawyer is going to do is file a notice of appearance (NOA) with the bank and the court so they can intervene and discuss your case on your behalf. If you’re in a state where the bank will file a Judicial foreclosure, the paperwork is set up in such a way that the bank will be the plaintiff and the homeowner will be the defendant. It does sound very intimidating, but it is the process that is legally set up to follow under such circumstances. Simply put, this is where the bank will notify you that they are filing for foreclosure and you can respond to say whether you’re going to fight for your home or keep it.

The second step the lawyer will take is to attend a meeting between the bank and the court to try and lay out a resolution and a direction instead of having the property go to foreclosure or even abandonment. The lawyer will come in and speak on the homeowner’s behalf allowing the family to continue with their regular work schedule instead of taking the day off. Frequently the process can be drawn out while the homeowner is being charged for daily interest while they pursue possible options.

At this stage, most attorneys will use defense strategies attempting to prolong the pre-foreclosure window while they pursue options such as loan modifications. The challenge with this strategy is that most loan modifications are not the answer for the majority of homeowners. Not only are they not a fit for the majority of homeowners, but they also cost the additional homeowner money because the outstanding balance is just added on to the end of the mortgage. It would ultimately result in paying back the money the homeowner fell behind on plus additional interest. This strategy also hurts the equity in the home families work so hard to acquire because the money doesn’t touch the principal.

The lawyer will often try to convince the bank and the court the modified payments are within an acceptable range under the family’s specific circumstances. While that might be possible under some situations, the amounts may not be that far off of what they’re currently struggling with currently.

If the family is dealing with a situation where the only real debt they have is with their home, and they’re looking for a way out of the circumstances, there are more straightforward options available. If the family still has equity in the house, it makes complete sense to make a short sale as quickly as possible to move on and protect their credit rating. A short sale also cost the family a lot less than what a defense attorney will cost the family.

To conclude, hiring foreclosure defense attorney can ultimately cost the family a lot more money, not only with the initial cost of the lawyer but also with the fees involving the bank because the process went on longer than needed. Ultimately the attorney costs the family money eating into their equity.

Why Bankruptcy Is Not The Best Option If Facing Foreclosure

When homeowners are facing foreclosure, it could be a terrifying time. Having all that pressure put on to you can make it very difficult to think clearly. On top of that people tend to get advice from all directions. It’s important to get the right information from the right people because one wrong step can cost you a lot. Some people even say to file bankruptcy. Once you look further into many of these options, you’ll realize a lot of them don’t make sense. We’re going to take a look at why bankruptcy is not the best option if you’re facing foreclosure.

The bank will begin the foreclosure process when homeowners have fallen at least three months behind on payments to the bank. Once this process has started, they are now in the pre-foreclosure phase until the bank announces foreclosure auction date. This window of time can last easily six months or more depending on the current status of the economy and the area of the property. When families reach this point, it can be very stressful, and some families will attempt to hire a foreclosure attorney.

Hiring a foreclosure attorney can be very expensive, and in many cases, the objective of the attorney is to delay the process initially. The attorney can file to stay a foreclosure sale but may not be able to stop the process permanently. It will undoubtedly put the brakes on the process the date it’s filed from the attorney, but the attorney may not move forward with the filing until the attorney receives compensation. This issue can present problems for families already behind in payments. Not to mention the additional cost the families will incur concerning Interest from these long delays.

Usually, the next step the foreclosure attorney will consider is filing bankruptcy as a way out of the process. Filing for bankruptcy can make a lot of sense if homeowners are extended well past their capacity and in addition to their mortgage debt, have a tremendous amount of debt outside of their home. In complex situations, there could be a time and place for a bankruptcy attorney to handle your case. However, if you’re filing bankruptcy and the only debt is your home then it does not make sense to follow that process because bankruptcy can also cost you a significant amount of money in attorney fees. It can easily require between $3,000 and $5,000 to file for bankruptcy, and then you would have that on your record for years to come.

Two types of bankruptcy can apply for homeowners facing foreclosure. First, is chapter 7 and is used as a tool to help homeowners move on from their home and to get them out of their debt. The second type of bankruptcy is chapter 13, and it’s designed as a vehicle to help a family stay in their home. It’s beneficial to understand the pros and cons of each type and to see what may apply to you if you’re carrying large amounts of debt outside of your home. This additional debt could include automobiles, cottages, RV campers and even credit cards.

If the homeowner owes more on your property than what it’s worth, then it wouldn’t make sense to attempt to keep the property. You’d be further off getting yourself out of the situation using a short sale. The other issue that you can run into if you attempt to modify your payments is, you’ll need to realize the money that you would be paying will not touch the principal likely for a couple of years. These initial payments go back directly to the trustee.

In many circumstances, a short sale is a far better process for a homeowner to follow to relieve themselves of their situation. A short sale does not cost the homeowners money versus bankruptcy, and in addition to that, the delays in the process can cost a homeowner an immense amount of additional fees.

In conclusion, many attorneys will lean towards bankruptcy as a solution out of foreclosure when it is not necessary. If a homeowner owes more money on the home than what it’s worth, it’s far better to move on instead of keeping the house. The additional delays for filing bankruptcy can cost a homeowner a significant amount of money. It will not cost the family money using a short sale.

If I Am In Foreclosure But Have Equity, How Do I Get Out Of Foreclosure?

Homeowners that find themselves in pre-foreclosure will generally fall into two categories. One is with equity, and the other is without equity. So what happens if you’re in foreclosure and you have equity? Of course, every situation is unique, but for the most part, there are best practices that a homeowner can follow. We’re going to jump in and have a look at what works best overall for this type of situation.

Pre-foreclosure is the period when a homeowner stops making payments to their lender or bank and is now facing foreclosure but is still in possession of the home. Homeowners in this position often feel confused and are not always sure of their options. If they have equity in the property, Its the portion paid off between what was owed and the fair market value of the property. If the homeowner were to sell while retaining real property value, that would be considered profit in theory. If the owners do not have equity in their property, the value of the property would be less compared to what is owed. in this case they would be upside down in their property and is considered underwater.

If a property owner does have equity in their home and discover themselves in this position, there are some steps they should follow. The first thing they should look at doing as quickly as possible is ordering a payoff. It is essential to have the homeowner arrange the payoff because they are the only ones initially authorized to do it. Homeowners do you have the option to have somebody else authorize it on their behalf. However, this is a long drawn process that’s very complicated. A homeowners best option is to go through with the process themselves saving time, money and unnecessary headaches.

A payoff is where the homeowner approaches the lender and pays off the remaining balance owing to satisfy the balance. They would first go to their lender and get a payoff quote to determine the exact amount due so they can complete the payoff. The payoff settlement or sometimes called a payoff letter will indicate the unpaid principal balance and the interest. It will also show any additional fees or associated costs up to that point. It’s important to understand the balance on your monthly statement is not the full amount remaining due to these additional fees. The payoff quote will include pre-foreclosure fees, any penalties, and other costs. You will also be giving a grace period which will stop the foreclosure process.

It’s important to understand the advantages of a payoff because there are many. The payoff will give you 30 days essentially putting a stop to the foreclosure process. This halt in the process is critical to understand because without the stoppage the homeowner is accruing additional daily interest which adds up very quickly. In addition to the daily interest fees, the bank will charge the homeowner for the bank’s attorney fees the bank incurs. On top of all of that, the bank will include administration and late fees.

Homeowners are not always aware they can incur tens of thousands of dollars over the course of the six or so months while involved in the foreclosure process. The ideal situation would be to get on to this problem as early as possible so that the families can save as much of the equity they worked so hard to get. It’s just simply too expensive to delay.

To conclude if a family is in a pre-foreclosure situation it’s best they act as quickly as possible. The best option for somebody who has equity in their home is to order a payoff with the lender. It will put a freeze on the foreclosure process for 30 days allowing you to sell and close the house in a reasonable time. Additionally, you will save on all the penalties, interest and additional fees.

Learn the Best Ways to Avoid Foreclosure

Are you no longer able to afford your home? Are you behind on your mortgage payments? Are you unable to sell your home for a price that covers the remaining balance of your mortgage? If the answer to these questions is yes, then your home may be in jeopardy of foreclosure. You are on the verge of losing one of the biggest accomplishments you have worked so hard to achieve. Learning Ways to avoid foreclosure is the best option to ensure your lender does not file a judgment against you or pursue you for defaulting on your mortgage loan.

Avoiding the Foreclosure Process

One of the best ways of avoiding foreclosure is by short selling your home. Short sales involve selling your home for less than the remaining balance on your mortgage. Your mortgage company must agree to a short sell of your home then you can sell house cash and use the proceeds to pay off all or a portion of your remaining balance. Short selling your home allows you to resolve your payment issues with your lender as opposed to avoiding the problem and hoping it will go away. Unfortunately, using this method will lower your credit score significantly, leave you without a home, and leave you with no profit from the sale. Foreclosures are expensive and time consuming for lenders. You can learn about the short sale and foreclosure process by working with government programs, such as the Making Home Affordable Program, Home Affordable Refinance Program, Principal Reduction Alternative, and Second Lien Modification Program. Working with a program that specializes in saving homes will help you fully understand what is involved in the foreclosure process.

Owning a home is a dream that you work tirelessly to achieve. However, that dream can quickly turn into a nightmare if you can no longer afford to make payments on your home. A short sale is the best way to avoid foreclosure of your home and financial ruin. Whether you are faced with long-term hardship or you are ineligible to refinance or modify your mortgage, short selling your home is the easiest and quickest way to keep your finances intact and avoid further heartache.

Ways to Avoid Foreclosure and Get Out of Mortgage Debt

In today’s economy, many people are having difficulty keeping up with their home loan payments. This can be risky, as homes risk going into foreclosure if the owner defaults on a loan. Mortgage lenders will take ownership of a foreclosed home and sell it to recover the money they lost from the defaulted loan. By learning Ways to avoid foreclosure, many people have been able to keep their mortgage loans out of default and save their homes from foreclosure.


  • Sometimes, simply refinancing a mortgage to have lower payments is all that is needed to prevent default. Many people may have recently suffered a pay cut or taken a job that has a lower salary that they are accustomed to. Programs like the Home Affordable Modification Act, Home Affordable Refinance Program, Second Lien Modification Program and the Principal Reduction Alternative all offer homeowners the opportunity to modify their existing home loan and lower their payments.
  • The housing market recently has declined, and as a result, many homes lost significant value. Some homeowners owe more on their mortgage loans than their homes are currently worth. This is referred to as being underwater on the home. In these cases, the Principal Reduction Alternative, the Second Lien Program from the Treasure and FHA and the Home Affordable Refinance Program can all help reduce loan amounts and payments to reflect the home’s current worth.
  • For homeowners that are recently unemployed, avoiding foreclosure can be a challenge. There are several programs designed to reduce or postpone payments for unemployed homeowners. This gives them a chance to find a new job and improve their financial stability. Programs to help unemployed homeowners include the Emergency Homeowners’ Loan Program, Forbearance for Unemployed Homeowners from the Federal Housing Administration, and the Home Affordable Program.
  • If it is not possible to refinance a home’s mortgage, and there are no other alternatives for repaying the loan, sometimes a short sale is the best way to keep a home from going into foreclosure. Mortgage lenders will allow short sales from some homeowners to recover some of the loan amount. Using short sales also tends to save banks time and money. If a home goes into foreclosure and the bank decides to sell house cash from the sale might not completely cover the existing loan amount. In these cases, loan holder may still have to pay back the remaining balance to the lender. In a short sale, the bank agrees that whatever the home is sold for will be adequate to cover the existing loan. Even if the home is sold for less than what remains on the mortgage, the debt is considered paid in full. Short sales still result in a loss of the home and can affect credit, but they are a good last effort to avoid going into foreclosure.

The recent housing market and economy have made it difficult for homeowners to make their mortgage payments on time. Some people may simply not make enough money to keep up with high loan payments, and others may have lost their job completely. There are several government programs available to help people keep their homes from going into foreclosure. When there are no other rehabilitation options on a loan, a short sale can be the best way to prevent foreclosure and repay the mortgage loan.