When Foreclosure Doesn’t Mean the End of the Road

[David Litt]

One of the biggest misconceptions I keep running into is the idea that foreclosure always ends with a family losing their home. In reality, that’s not always the case.

I’ve seen situations where:

• A loan modification gave the homeowner breathing room.

• A repayment plan reinstated the mortgage.

• Equity allowed them to refinance and reset their financial footing.

For me, this was a mindset shift: foreclosure doesn’t always have to mean “lose the house.” Sometimes it’s about finding the option that fits best for the homeowner’s circumstances.

So here’s what I’m curious about:

• Have you seen examples where a foreclosure situation ended with the homeowner staying put?

• Do you think investors should spend more time exploring solutions that don’t always involve acquisition?

• How do you personally decide when the right path is rescue versus purchase?