Facing a Tough Mortgage? You Have More Options Than You Think
You’re not alone in this
If your mortgage has started to feel heavier than the house is worth, take a breath — you haven’t done anything wrong, and you’re in more company than you’d guess. Around San Antonio, plenty of service members bought at the top of a fast market, then got orders, a rate change, or a life curveball that made the numbers stop working. Owing more than your home would sell for has a name — being “underwater” — and it is a solvable problem, not a moral failing.
First, the good news: your options
Foreclosure is usually the last resort, not the first stop. Depending on your situation and your loan, the paths people actually use include:
- Reinstatement or a repayment plan — catch up over time if the hardship was temporary.
- Forbearance — a temporary pause or reduction in payments while you regroup.
- Loan modification — your servicer permanently changes the terms to lower the payment.
- VA Servicing Purchase (VASP) — for eligible VA loans, the VA can take over and modify the loan.
- Short sale — selling the home for less than you owe, with the lender’s approval, without the debt hanging over you.
- Deed-in-lieu — handing the home back to the lender instead of going through foreclosure.
Which one fits depends on your loan, your income, and your timeline. The first move is almost always the same: call your mortgage servicer and ask what home-retention and foreclosure-alternative options you qualify for. It’s a hard call to make. We’ll sit with you while you make it if that helps.
What a short sale actually is
A short sale means you sell your home for less than the balance on your mortgage, and your lender agrees to accept those proceeds — often releasing you from the shortfall. It takes the lender’s sign-off, some paperwork proving hardship, and a real estate team that has done it before. Done right, it’s far gentler on your future than a foreclosure, and it lets you close this chapter on your terms.
If you have a VA loan
VA borrowers have extra options. The VA offers foreclosure alternatives including a “compromise sale” (the VA version of a short sale) and, since 2024, the VA Servicing Purchase (VASP) program, where the VA can purchase and modify a defaulted loan to a fixed, lower rate. You don’t apply for VASP directly — your servicer reviews you for it — so the step is still to call your servicer, and you can reach the VA’s loan team at 877-827-3702, option 5.
What it can mean for your credit and taxes
We’ll always shoot straight with you: a short sale does affect your credit, though typically less than a foreclosure, and forgiven debt can sometimes have tax consequences. Those pieces are real and very situation-specific — which is why we’ll point you to a HUD-approved housing counselor and, where it matters, a tax professional or attorney before you decide.
How we help
This is a big part of what we do, and we do it quietly. We’ll give you an honest read on where your home stands in today’s market, walk through every option so a short sale is a real choice and not a default, handle the listing and the back-and-forth with your lender, and keep the whole thing discreet and calm. No pressure, no judgment, no rush — just a steady hand from a team of military spouses and veterans who understand the clock you’re on.
Let’s talk — quietly and with no pressure
If any of this sounds like where you are, reach out. One confidential conversation, and you’ll at least know your options. That’s the hardest part, and it’s the part we can take off your plate today.
Homefront United Realty Group is a licensed Texas real estate brokerage. We are not a law firm, lender, mortgage servicer, credit counselor, or tax advisor, and nothing on this page is legal, tax, or financial advice. Every situation is different and outcomes vary; we cannot guarantee any specific result, loan approval, or that foreclosure will be avoided. For free, expert help, contact a HUD-approved housing counselor at 800-569-4287 or hud.gov, your mortgage servicer, and — for VA loans — the VA at 877-827-3702, option 5. Texas homeowners can also find resources through the Texas Department of Housing and Community Affairs (tdhca.texas.gov).
