Navigating Foreclosure from the Other Side: A Real Talk Perspective

[David Litt]

I wanted to open up a conversation around something that doesn't get talked about enough here: helping homeowners in pre-foreclosure—not just as investors, but as humans first.

Lately, I've been seeing more situations where sellers are upside-down on their mortgage, months behind on payments, or completely overwhelmed by paperwork and legal notices. These aren’t always people looking to cash out—they’re trying to survive.

What I’ve learned is that listening (really listening) can be more valuable than jumping straight to an offer. In a few cases, walking them through their options—loan modification, reinstatement, or even applying for hardship programs—ended with them keeping the house. And that was the right outcome.

Don’t get me wrong, I’m still in the business of making investments work. But when you build trust, help someone make the best decision for their future (even if it's not a deal for you), it pays off in ways that go beyond the spreadsheet.

Have any of you navigated these conversations? Where’s the line between opportunity and ethics when it comes to distressed properties?

Would love to hear how others handle it.