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Methods for Avoiding Foreclosure

For people struggling with mortgage payments and at risk of default and foreclosure on a home, declaring bankruptcy can be a viable option in some cases. At Utah Bankruptcy, our bankruptcy attorneys can walk you through when declaring might help save your home and preserve your equity.

There are some situations where other tactics can also help you avoid foreclosure, and we can offer advice on these as well. Here are a few of the most common.


If a lender is preparing to foreclose on your home, they will first present you with an NOD, or Notice of Default. They also have to schedule a time for auction for your home. During this in-between period before the auction takes place, know that lenders will almost always work out a financial compromise that will allow you to get back on your mortgage program without foreclosure. Any final compromises you might be able to make should be suggested at that time.

Short Sale

If you receive an offer from a buyer between receiving your NOD and the auction date, the lender must consider it. They may view this option as a time-saver that nets them virtually the same result – after all, they’d already be turning around to re-sell the home anyway. This is called a short sale, and there are plenty of situations where it can work as an acceptable compromise for both sides.


Most loans these days are not assumable, but if you are facing foreclosure, there’s a chance your lender could be willing to modify your loan. They might be willing to allow another buyer to assume your loan if this means less hassle for them – if you can negotiate a down payment from the new buyer that pays off your outstanding balance plus assumes the loan at no additional risk to the lender, everyone wins.


In many situations, bankruptcy will truly be the best option. Bankruptcy filing prohibits and debt collectors from continuing debt collection, and foreclosure is considered debt collection. You do need to have a proper plan outlined in these cases, though – if you don’t, filing bankruptcy will simply buy you more time. Bankruptcy doesn’t actually let you off the hook for your debts, so you’ll need a coherent approach here.

To learn more about avoiding foreclosure, or any of the other ways bankruptcy filings can impact you, speak to the bankruptcy lawyers at Utah Bankruptcy today.