Pre-Foreclosure Options in Maryland, DC and Virginia: What to Know

Falling behind on a mortgage is frightening, and the letters that follow can be hard to read. Pre-foreclosure is the period after a homeowner misses payments and before any foreclosure sale. It is the time when a homeowner usually has the most choices, which is why acting early matters. This guide explains the Options for Homeowners Facing Foreclosure that people commonly discuss with their lenders, attorneys and housing counselors. For details on how we help, see our page on pre-foreclosure options.

This article is general information, not legal, tax or financial advice. Foreclosure procedures and timelines differ among Maryland, the District of Columbia and Virginia. Talk with an attorney about your situation as soon as possible.

First steps when you fall behind

Open every letter from your servicer and keep copies in one folder. Write down dates, names and what was said in every call. Contact your servicer to ask what programs are available to homeowners in hardship. A HUD-approved housing counselor can explain the process at no or low cost and help you prepare for those conversations. Your attorney can tell you what the notices mean and what deadlines apply.

Choose licensed professionals who explain your options honestly, charge no money up front and never ask you to sign over your deed. Talk with your attorney before signing anything.

Options to discuss with your lender and advisors

Each of these depends on the lender's programs and approval, your finances and your goals.

Reinstatement. Paying the past-due amount, fees and costs to bring the loan current.

Repayment plan. Spreading the past-due amount over several months on top of your regular payment.

Forbearance. A temporary reduction or pause in payments during a short-term hardship, with a plan to repay later.

Loan modification. A permanent change to the loan terms, such as the rate, term or balance, approved by the lender.

Refinancing. Replacing the loan with a new one, if you qualify.

Traditional sale. If your home is worth more than you owe, selling it may pay off the loan and leave you with remaining equity.

Short sale. If you owe more than the home is worth, the lender may approve a sale for less than the full payoff. See our guide to short sales and Options for Homeowners Facing Foreclosure.

Deed in lieu of foreclosure. Transferring the property to the lender, with its approval, in exchange for release from the loan on terms the lender sets.

Some jurisdictions also offer mediation or other programs for homeowners. Ask your attorney or housing counselor what is available where your home is located.

Where a real estate professional fits

If selling is the right path, time matters, because preparing, marketing and closing a home all take time, and short sales take longer. We provide a market analysis based on recent comparable sales so you can see whether you have equity or are underwater. If you are underwater, our page on underwater mortgage home sales explains the sale paths.

When a short sale is involved, Real Estate Search and Sale facilitates the transaction: we list and market the home and communicate with and follow up with every lienholder. The title company collects the documents and obtains payoffs, and sellers may choose a service provider from our network to help organize documents. We do not negotiate with short-sale mortgage lenders. Any negotiation with the lender is the seller's or the seller's representative's responsibility. We cannot stop or prevent a foreclosure, and no one can promise that a sale will close before a scheduled sale date.

Other debts on the property

Homeowners in pre-foreclosure often have HOA balances, tax bills or judgments too. These must be accounted for in any sale. Our guide to selling a house with liens explains how payoffs are typically coordinated at closing.

Preparing the home while time is short

Whether your home is a condominium in Silver Spring, a townhouse in Bowie, a single-family home in Frederick, a rowhouse in Washington DC or a home in Fairfax or Manassas, simple steps can help it sell: decluttering, cleaning and fixing small items buyers notice. Some independent providers may accept payment at closing, which helps when cash is tight.

How Real Estate Search and Sale can help

For more than 20 years, Carolyn Thompson and agents affiliated with Real Estate Search and Sale have helped homeowners in pre-foreclosure understand their sale options and move quickly when selling is the right choice. Carolyn holds the Certified Distressed Property Expert (CDPE) certification, a certification program with extensive training in compliance, the Certified Residential Specialist (CRS) designation and the Short Sales and Foreclosure Resource (SFR) certification from the National Association of REALTORS®. We provide a clear market analysis, follow up with lienholders on short sales and help you locate independent service providers for preparation, with remote closings for owners who have moved. Most of our business comes from referrals. Learn more about pre-foreclosure options.

Frequently asked questions

Can I still sell my house if I am behind on payments? Often, yes, until the foreclosure process is complete. Ask your attorney how much time you may have in your situation.

Can you stop my foreclosure? No. Real Estate Search and Sale cannot stop or prevent a foreclosure. Your attorney and lender can explain how any option may affect your timeline.

Who talks to my lender about a short sale? We follow up with lienholders, and the title company handles documents and payoffs. Any negotiation with the lender is the responsibility of the seller or the seller's representative.

Where can I get free help understanding my options? A HUD-approved housing counselor can help. The Consumer Financial Protection Bureau explains how to find one.

What should I avoid? Choose licensed professionals who explain your options clearly, charge no upfront fees and never ask you to sign over your deed. Talk with your attorney first.

What Real Estate Search and Sale, LLC Does Not Do

Real Estate Search and Sale, LLC provides real estate brokerage services. To keep our role clear, we do not:

• Collect any money beyond our real estate brokerage commission.
• Negotiate with your lender or loan servicer for a loan modification, for a promissory note covering a deficiency, or to prevent foreclosure.
• Arrange refinancing or contact creditors on your behalf.
• Promise to save your home, stop a foreclosure or obtain a short sale.
• Advise on the benefits of a strategic default.
• Predict how one loss-mitigation option will affect your credit score compared with another.
• Predict whether a lender will waive a deficiency judgment or pay relocation costs in a short sale.

Resources Available for You to Consider

Real Estate Search and Sale, LLC has resources available for you to consider. We can share contact information for licensed professionals, such as real estate attorneys, tax professionals and HUD-approved housing counselors. You are free to choose any provider you like, and providers should be licensed. Real Estate Search and Sale, LLC does not receive payments from service providers whose contact information we share.

You can also read the Foreclosure Help Guide for an overview of options for homeowners facing foreclosure. To ask for resources, call the 24-Hour Appointment Desk at 202-630-5070.

References are available on request. Real Estate Search and Sale, LLC · 24-Hour Appointment Desk: 202-630-5070 · Open 24 hours. Equal Housing Opportunity.

Real Estate Search and Sale, LLC does not endorse, guarantee or receive compensation from any service provider. Please interview and verify any provider you choose.