Foreclosure Rescue vs. Investing: Why They’re Not the Same

[David Litt]

I’ve noticed a lot of discussions here about buying foreclosure properties, and I think it’s worth clarifying something I’ve learned through experience: foreclosure rescue is not the same as investing in foreclosures.

When most people think “foreclosure,” they picture buying a distressed property at a discount — and that’s definitely one strategy. But foreclosure rescue often has a completely different goal: helping homeowners avoid losing their home whenever possible.

Sometimes that means buying the property, but not always. In many cases, it involves:

• Helping owners explore options like loan modifications, forbearance, or refinancing.

• Working with lenders to negotiate timelines or repayment structures.

• Educating homeowners on alternatives they might not even know exist.

From what I’ve seen, a lot of homeowners assume that talking to someone about foreclosure automatically means they’ll be forced to sell. But in reality, there are situations where they can stay in their home and get back on track financially.

I’m curious how others in the community view this.

[Benjamin Louie]

@David Litt 

This is such an important distinction, I really appreciate you bringing it up.

I think a lot of newer investors lump “foreclosure” and “foreclosure rescue” together, but you’re right: the intent is totally different. One is about acquiring a property, the other is about helping someone keep theirs.

I’ve had conversations with homeowners who were shocked to learn they actually had options other than selling. Just being a resource and listening can go a long way.