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.