Carolina Foreclosure Resource

Meet Kristin Hunteman, who has dedicated herself to helping home owners avoid foreclosure since 2008. You’ll get to hear her story and why it’s her passion. She has successfully helped owners save their credit and stop foreclosure in all kinds of situations.

What if you can’t pay your mortgage due to illness, divorce, loss of income?

These questions are haunting and can be one of the scariest situations home owners face. Add to that misinformation and bad advise and often consumers find themselves in the perfect storm, especially now during our national COVID-19 crisis.

No one plans to be in foreclosure, or to be “upside down” in home value. It’s a stressful situation that can often leave owners feeling hopeless as if there’s no option but to “walk away” and let it go back to the bank. Unfortunately, I hear this advise coming from family members and friends who mean well but don’t understand the consequences that can literally haunt you financially for years after a foreclosure.

How does a Forbearance impact me?

Many home owners signed up for forbearances without fully understanding what would happen at the end of the forbearance period. There was a lot of misinformation published at the beginning of the CARES ACT forbearance efforts. Here are some of the “surprises” many people find at the end of their forbearance;

Your loan balance is higher; this often wasn’t explained fully at the beginning. The payments are deferred, not forgiven, so that adds to your balance. Some lenders also structured the forbearance to have a balloon payment due at the end. You may be able to renegotiate that if it happened to you.

You can’t refinance; with values rising it makes sense that you would want to refinance and stay in your home. The Catch 22 is that until the forbearance is fully paid, you won’t qualify for a refinance. 

There are options to resolve your situation, but timing is critical. We need to take proactive action prior to the end of your 30 day grace period after the forbearance.

Foreclosure Avoidance Options

Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. In the chart below are highlights from a summary of short sale vs. foreclosure and the impact on your credit, and ability to get a mortgage again soon.

Options for residents facing foreclosure are many, including but not limited to short sales. Following is a brief explanation of these solutions:


A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

As a result of the COVID19 crises, many lenders have proactively approached home owners offering a forbearance. As noted above, a forbearance is not a fit for every situation. There are risks and complications. For instance, it can impact your ability to refinance into a more favorable loan.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, can convert their property to a rental and use the rental income to pay the mortgage.

Deed-in-Lieu of Foreclosure

Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.


Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.


If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

Service Members Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with service members in relation to qualifying for this relief.

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

Short Sale

If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced relocation, and more.

Postponing foreclosure auction

Facing an auction date can feel like it’s too late to get help. Not true! As long as the homeowner is willing to do the work needed, an auction can be postponed to allow the homeowner to explore their options. 

What if I have more questions?

I'm here to help! Please either call or text me at 864-867-2384 or you can schedule a free, confidential consultation by going to my Calendly!