Every path, explained without spin
Which options are open to you depends on two things: how much time is left, and what the numbers say. Here is what each one actually involves.
Options that aim to save the property
These require cooperation from your lender and, in most cases, provable income going forward.
Forbearance
A temporary pause or reduction of payments while you recover from a short-term hardship. The missed amount does not disappear; it is repaid later, added to the balance, or handled in a modification.
Loan Modification
A permanent change to the terms of your loan: rate, term, or balance. Lenders require documentation of income and hardship, and approval is never guaranteed.
Reinstatement
Paying the full past-due amount plus fees to bring the loan current. The cleanest fix when the money is genuinely available.
Riding out the Redemption Period
After a Michigan Sheriff's Sale, a redemption period follows. Some homeowners use that time to arrange financing, sell, or plan a move. Time remaining drives everything.
Options that end the loan
Selling is not failure. In many situations it protects your equity, your credit, and your next chapter better than fighting to keep a payment you cannot carry.
Traditional Retail Sale
Listed on the MLS with a Realtor. Generally the best chance at the highest price, with the widest exposure through the MLS, IDX feeds, and real estate sites.
Wholesale (Cash) Sale
A fast cash close, typically at a discount. Useful in time-sensitive situations, but read the wholesaler warning below before signing anything.
Short Sale
When the sale price is less than the amount owed, the lender must approve. Short sales can still be marketed through the MLS, and lenders often insist on retail marketing.
Deed in Lieu of Foreclosure
Voluntarily transferring the deed to the lender instead of going through foreclosure. Requires lender agreement, and terms vary widely.
Cash for Keys
The lender or new owner pays you to move out on an agreed date leaving the property in agreed condition. Get every term in writing.
Mortgage Assumption
A buyer takes over your existing loan. The loan must qualify for assumption and the lender must approve.
Example options compared
Retail Sale
- Listed through the MLS with a Realtor
- Generally offers the best chance for a higher selling price
- Greater exposure through the MLS, IDX feed, our website, and many additional real estate websites
- Takes longer than a cash close, and timing matters when a sale date is set
Wholesale Sale
- Typically a cash investor
- Puts you under contract so you cannot sell to others
- Shops your home to other investors
- Makes their money from investors you never meet
- Contracts often tie up the property indefinitely
- Some walk away after the home sells at auction without releasing the contract
Short Sale
- If the sale price is less than the amount owed, the lender must approve
- Can still be marketed through the MLS
- Lenders often insist on retail marketing
- Approval timelines can be long, so start early
Mortgage Assumption
- The loan must qualify for a retail assumption
- The lender must approve the assumption
- Some investor assumptions are offered with a delayed closing
- Some sellers receive financial benefits from an assumption
- We use legal documentation and close through title companies
Bankruptcy is a legal decision
Important
Consulting only. This is not legal, tax, or financial advice. Foreclosure and redemption rules vary, so speak with a licensed attorney about your specific situation.
Not sure which option fits?
Bring your numbers and your deadline. We will walk through the realistic paths together.