No one plans to be in foreclosure, or to be “upside down” in home value. It’s a stressful situation that can often leave owners feeling hopeless as if there’s no option but to “walk away” and let it go back to the bank. Unfortunately, I hear this advise coming from family members and friends who mean well but don’t understand the consequences that can literally haunt you financially after a foreclosure.

Because of the healthy real estate market, banks are becoming more aggressive and pursuing foreclosure auctions on properties that have been in default for a very long time. It's important to take action as soon as possible, even if this has been an ongoing issue since the mortgage crisis. 

When we meet, I’ll share my story of facing foreclosure in the early waves of the mortgage crisis when I lived in Hawaii. Even in that “perfect storm” I could have successfully avoided foreclosure with a short sale if I knew then what I know now. That’s why I’ve dedicated myself to helping home owners for the past 10 years successfully resolve their situations and move on with the next phase of their lives. As a short sale expert with advanced training and an expansive network of resources, I’ve helped people in various situations such as;

  • Luxury Second Homes – I have completed many successful short sales on high-end luxury vacation homes with debt forgiveness and no capital contribution from the owners.
  • Multiple properties – many of my sellers have owned more than one home. There’s a “myth” that you can’t do a short sale if you own multiple homes – simply not true.
  • Wealth preservation – While in the early days of the mortgage crisis we often did end up with some small contribution toward deficiency needed from the seller, in recent years that hasn’t been the case. One of my sellers had $400K in his savings / assets and not one dollar was required toward the deficiency, and we got debt forgiveness!
  • Underwater properties – you don’t have to be in foreclosure or behind on your mortgage to do a successful short sale. Especially in the luxury market, sometimes the current values simply do not support a sale that will pay off the mortgage. We can negotiate a successful resolution with debt forgiveness for the difference.

While there are options other than a short sale as noted below, please contact me before paying for services to help you. Many of my clients have paid $3-$5K for help and received no resolution while the foreclosure process kept moving forward. I do have reputable referral partners who will consult with you for free and we can see if these options work for you or if you need to do a short sale.

Short sales do not cost the owner anything. You cannot make money from a short sale, but you also do not have to pay for any realtor fees, transfer taxes, etc.

Time is not on your side. Please allow me to help! My consultation with you is confidential and at no cost to you. 


Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. In the chart below are highlights from a summary of short sale vs. foreclosure and the impact on your credit, and ability to get a mortgage again soon. 

Options for residents facing foreclosure are many, including but not limited to short sales. Following is a brief explanation of these solutions:


A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, can convert their property to a rental and use the rental income to pay the mortgage.

Deed-in-Lieu of Foreclosure

Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.


Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.


If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

Servicemembers Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

Short Sale

If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.

This represents only a summary of some of the solutions available to homeowners facing foreclosure. To explore options, set up a time to meet with Susanna for an evaluation of your individual situation, property value, and possible options.