What I’ve Learned Helping Families Navigate Foreclosure (And Why Early Action Matters

[David Litt]

I wanted to share a few hard-earned lessons from working closely with homeowners who’ve found themselves facing foreclosure. It’s a side of real estate that isn’t always talked about—but should be.

Over the years, I’ve worked with countless families—people who never imagined they’d miss a payment, much less face a default notice. Most weren’t reckless. Life just happened. Job losses, medical bills, divorces, or a sharp rise in property taxes—they all play a part more often than people assume.

What I’ve learned is this: the earlier someone takes action, the more options they have. I’ve seen homeowners wait until days before auction, thinking a miracle might come, only to find their choices are gone. I’ve also seen folks catch the problem early and negotiate loan modifications, forbearances, or even sell on their terms before the bank steps in.

For any investors here who are working with distressed sellers or helping homeowners in tough spots, here are a few tips:

• Empathy first. You’ll build more trust by listening than by pitching.

• Know the timelines. State laws vary, and knowing how long someone has in pre-foreclosure is key.

• Help them understand their rights. Many people don’t realize foreclosure is a legal process—and they have options until the very end.

• Not every deal needs to close. Sometimes, the best thing for a family is to keep their home, not sell it. That builds reputation and community.

Just thought I’d throw this into the mix in case it helps others in this space. If you’ve been involved in helping homeowners avoid foreclosure, I’d love to hear what’s worked for you.

We all learn from each other—and this is one space where doing the right thing really matters.

[Jay Hinrichs]

Quote from @James McGovern:

Have you figured out any charities or liberal leaning organizations that have moved beyond virtue signaling and actually help financially?

Most states now have very specific laws of who can help someone in foreclosure you just dont do this without checking the laws of the state first. you might find yourself in deep crap .. the industry does not need yet another guru trained layman trying to help folks out of complex situation all on the pretense of helping when in fact they are trying to buy the house.