Foreclosure Bailout
Foreclosure Bailout Loans — Stop the Sale, Protect Your Equity
Short-term bailout financing to pay off a defaulted mortgage, stop the foreclosure sale, and protect your equity on non-owner-occupied investment property. Approval based on equity, not credit. In-house underwriting and funding from a direct lender that closes on the timelines foreclosure actually demands.
2-Yr Term, 40-Yr Am
Typical Close
On As-Is Value
Credit-Event-Friendly
Bailout
What is a
Foreclosure Bailout Loan?
A foreclosure bailout loan is short-term, asset-based financing that pays off a mortgage in default, in pre-foreclosure, or scheduled for a foreclosure sale. The new loan covers the full payoff to the foreclosing lender, including principal, arrears, default interest, late fees, and legal costs. That stops the foreclosure and returns control of the property to you.
Banks won't lend to a borrower in active default. We underwrite the property itself: its current value, the available equity, and a realistic exit. Most borrowers refinance into a long-term DSCR loan once the credit event seasons, or sell at full market value instead of at auction.
💡 Business-Purpose Loans for Investment Property
Every foreclosure bailout loan we originate is a business-purpose loan on non-owner-occupied investment property. No tax returns, no W-2s, no debt-to-income analysis. We do not offer this program on primary residences. If you live in the property, contact a HUD-approved housing counselor at 800-569-4287.
See all of our loan programs →
Situations We Finance
- Missed-payment default caused by a vacancy, a non-paying tenant, a rehab that ran long, or a portfolio cash-flow gap
- Matured or balloon loans where the bridge or private lender refused to extend and filed to foreclose
- Notice of default or lis pendens filed, with no sale date set yet
- Scheduled foreclosure auctions where funds are needed before the sale
- Estates and heirs holding an inherited investment property with a delinquent mortgage
- Commercial and multifamily 5+ in maturity default that need time to stabilize and refinance
Foreclosure Bailout Loan Terms
| Loan Amounts | $100,000 to $5,000,000+ |
| Maximum LTV | Up to 65% of as-is value |
| Term | 2 years |
| Rate | 12.99% fixed |
| Payment Structure | 40-year amortization, balance due at end of term |
| Property Types | SFR 1–4, multifamily 5+, mixed-use, commercial. Non-owner-occupied only. |
| Vesting | LLC, LP, corporation, or trust |
| Income Documentation | None — no tax returns or W-2s |
| Credit Score | No minimum FICO |
| Recent Credit Events | Foreclosure, notice of default, late payments, and maturity defaults accepted |
| Use of Funds | Payoff of the defaulted lien, arrears, default interest, legal fees, and delinquent taxes |
| Exit Strategy | Refinance (DSCR or commercial) or sale of the property |
| Time to Close | As little as 7–10 days with a clear title path |
Check Your Bailout
in 30 Seconds
Enter the property value and what it takes to pay off your lender to see whether the payoff fits inside our leverage limit.
Your Estimate
Estimate only, not a commitment to lend. Assumes closing costs of about 5% of the loan. Final terms depend on valuation, title, property type, and exit strategy.
Foreclosure Bailout Frequently Asked Questions
Can you stop a foreclosure sale that is already scheduled?
In many cases, yes. If we can get a payoff and clear title before the sale date, the loan pays off the foreclosing lender and the sale is cancelled. The earlier you call, the more options you have. Files with less than 7 days to auction are reviewed case by case.
Do I need good credit to get a foreclosure bailout loan?
No. Bailout loans are underwritten on property value, equity, and your exit strategy. Recent late payments, a pending foreclosure, and prior credit events are expected in this program.
How much equity do I need?
We lend up to 65% of the as-is value, so the full payoff plus closing costs generally needs to fit inside that limit. If it doesn't, you can bring the difference to closing.
Do you offer foreclosure bailout loans on primary residences?
No. This program is for non-owner-occupied investment property held for business purposes only. Homeowners facing foreclosure on their residence should contact a HUD-approved housing counselor at 800-569-4287.
What documents do I need?
A copy of the notice of default or foreclosure filing, a current payoff or reinstatement statement, property details and photos, leases if the property is tenanted, entity documents, and your exit plan. No tax returns or W-2s.
What is the typical exit strategy?
Most borrowers refinance into a long-term DSCR or commercial loan once the credit event has seasoned and the property is stabilized. Others sell at market value on their own timeline and keep the equity that would have been lost at auction.
How fast can you close?
Clean files with clear title can close in as little as 7–10 days. Title complexity, junior liens, and how quickly the foreclosing lender returns a payoff are the biggest variables.
Can the loan cover back taxes and legal fees?
Yes. Delinquent property taxes, default interest, late charges, and the foreclosing lender's attorney fees can be included in the payoff, subject to the LTV limit.
How the Foreclosure Bailout Process Works
Step 1 — Submit your scenario
Send the property address, foreclosure notice or sale date, current payoff estimate, and your exit plan. You'll have an offer in minutes.
Step 2 — Valuation and term sheet
We confirm value with a BPO, desktop, or full appraisal depending on the file, and issue a term sheet within 24–48 hours.
Step 3 — Title and payoff coordination
We order title, request the official payoff from the foreclosing lender or its counsel, and coordinate with the trustee or attorney on the sale date.
Step 4 — Fund and close
We wire the payoff directly to the foreclosing lender, the foreclosure is dismissed or the sale cancelled, and you move forward with your exit.
Choose your loan type.
Four loan programs built for real estate investors. Pick the one that fits your deal and send us your scenario.
Credit Challenged OK
12.99%Fixed
Bridge financing, all property types. Purchase, refinance, rate & term, or pay off a note coming due.
Alt-doc, no tax returns · Cash-out refi or rate & term.
Facing Foreclosure on an Investment Property?
Get an offer in minutes. Direct lender, in-house underwriting, and payoff coordination handled by our closing team.