My house is in foreclosure. What are my options?
You're getting a lot of calls right now. Letters, postcards, people knocking. Every one of them wants to buy your house.
I'm one of those people. So take what follows accordingly, and then read it anyway, because none of the others are going to tell you this:
You may not have to sell your house at all.
- Keeping the house is often possible. Loan modification, forbearance, a repayment plan, a partial claim. Most homeowners have never heard of these, because everyone contacting them is contacting them to buy.
- Your lender usually doesn't want the house. Foreclosing is slow and expensive for them. They will frequently take a worked-out deal over a foreclosure.
- There is free, real help. HUD-approved housing counselors cost nothing, aren't selling anything, and can often reach your lender when you can't.
- Never pay an upfront fee to anyone promising to stop your foreclosure. That is the shape of a scam, and in many states it's illegal.
- Time is the asset you're spending. Every option on this page gets narrower the longer you wait. Today you have more of them than you will next month.
Why nobody has told you this
Because the people who found your address found it on a public foreclosure filing, and they found it because they buy houses. A person whose business is buying your house at a discount has no reason to walk you through how to keep it.
I'd rather tell you. Partly because it's the truth, and partly for a reason I'll be blunt about: I'd rather have a conversation with someone who already knows what their options are than take a house from someone who didn't.
The ways people keep their homes
These are called loss mitigation options. Your lender has a department for exactly this. Which ones are available depends on your loan type, your income, and how far along things are, but here is what exists:
Loan modification
The lender permanently changes the terms of your loan, the interest rate, the length, sometimes the balance, to make the payment something you can actually afford. The past-due amount often gets folded back into the loan. This is the one most people have never heard of, and it's the one that saves the most houses.
Forbearance
The lender pauses or reduces your payments for a period of time while you get back on your feet. It's not forgiveness, the missed amount comes due later, usually through one of the other options on this list. But it stops the bleeding while you sort things out.
Repayment plan
You keep making your regular payment plus a bit extra each month until the arrears are caught up. Simple, and it works if your income has recovered and the back amount isn't enormous.
Partial claim (FHA loans)
If you have an FHA loan, the past-due amount can sometimes be moved into a separate, interest-free second lien that you don't pay until you sell or pay off the mortgage. Your regular payment resumes and the arrears simply stop being an emergency. Ask about this by name.
You can stop it later than you think
In Florida you can cure the debt and stop the sale right up until the clerk files the certificate of sale, or the date named in the judgment, whichever comes later. That’s Florida Statute 45.0315. People assume the judgment is the end. It isn’t. The sale is the end, and even that has a window after it.
Here's the leverage you didn't know you had. A foreclosure is expensive for your lender, attorneys, months of process, a property they don't want, a sale that usually nets them less than what you owe. They are frequently better off working something out with you than taking your house.
You are not begging them for a favor. You are offering them a better outcome than the one they're heading toward.
The free help almost nobody uses
A HUD-approved housing counselor costs you nothing. They are nonprofit. They are not trying to buy your house, list your house, or sell you anything at all.
And here's the part that matters: they often have direct lines into lender loss-mitigation departments, the same departments that leave you on hold for two hours and lose your paperwork. A counselor can frequently get an answer where you cannot.
Find one at hud.gov, or call 1-800-569-4287. If you do only one thing from this page, do this one. It is free, and it is the single highest-value phone call available to you right now.
And the one that will hurt you
Never pay an upfront fee to anyone who promises to stop your foreclosure. Not a "processing fee," not a "consultation retainer," not a "we'll negotiate with your lender for $1,500."
Legitimate housing counseling is free. Attorneys charge for legal work and say so plainly. Anyone who wants money in advance to "save your home" is running the oldest play there is on the most desperate people there are, and in many states, including Florida, it's illegal.
Do not sign a deed over to anyone who promises to let you rent the house back and buy it later. That structure is the classic foreclosure rescue scam. If someone proposes it, walk out and call an attorney.
If you truly can't keep it
Sometimes the numbers don't work. The income isn't coming back, or the arrears got too big, or the house needs more than anyone can fund. That's not a moral failure and it's not the end of the world. It's just a fact, and facts have options too.
- Sell it conventionally: if there's enough equity to cover the payoff, the arrears and the cost of selling, list it and walk away whole. Run your numbers first so you know whether that's real.
- Short sale: the lender agrees to accept less than what you owe. Insist that the approval letter waives the deficiency in writing, or they may come after you for the shortfall afterward.
- Someone takes over the payments: a buyer catches up the arrears and takes over the existing loan payments. Real, legal, and it closes through a title company or a closing attorney like any other sale. Also the one with the sharpest teeth, so read the next paragraph.
- Deed in lieu: you hand the keys back. Less damaging than a full foreclosure, and faster. The lender has to agree.
If it sells for more than you owe, that money is yours
If the house brings more at the sale than the judgment and the costs, the extra is called surplus, and Florida law presumes it belongs to you, the owner of record when the case was filed. Junior lienholders get sixty days to claim against it. After the clerk reports it unclaimed, you are the only one who can ask for it. People walk away from this money every year because nobody told them it existed.
If someone offers to take over your payments
The loan stays in your name. The deed goes to them; the debt does not. If they stop paying, your credit is destroyed and the house forecloses under your name, you'd have given away the house and kept the liability.
Ask them this first, and listen to how they answer: "How many months of payments do you have in reserve if you can't get it rented?" A real buyer has an answer, usually six months. Someone who learned this from a video will say "why would I need that?"
Then get all three in writing or walk: a third-party loan servicing company, proof of every payment, and a written right to take the property back on default. And have your own attorney read every page.
How this actually works in Flagler County
Your case runs through the Circuit Court at the Kim C. Hammond Justice Center, 1769 E. Moody Blvd in Bunnell. The Clerk’s main line is 386-313-4400.
Flagler doesn’t sell houses on the courthouse steps anymore. Foreclosure sales here are online auctions at 11am on flagler.realforeclose.com, and the sale list is published on the Clerk’s own site, so you can look up your own case and its date.
After the sale there is a ten day window. If no objection is filed in those ten days, the Clerk issues the certificate of title and the house is gone. If one is filed, the judge decides. Ten days is short, and it’s the last door on this page.
The one thing that's actually running out
Not your options. Your time.
Every option on this page is wider today than it will be next month, and next month is wider than the month after. Modifications get harder as the arrears grow. Short sales need runway. A buyer who can catch up $8,000 in back payments may not be able to catch up $30,000.
The homeowners who lose everything are almost never the ones who had no options. They're the ones who found out too late that they had any.
See where you actually stand
A free calculator that runs your real payoff, principal, arrears, late fees, liens, against what the house would actually sell for. It'll tell you plainly whether selling clears the debt, or whether you need to fight to keep it. No email required, nothing to sign.
Run your numbers →
I buy houses. I'd rather you know your options before you talk to anyone, me included. If the right answer is a loan modification and a free HUD counselor, I hope you never call me at all. And if you do want to talk it through, there's no contract in a phone call. Nothing to sign, nothing to agree to.
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