Protection 3: Exit Protection

If Loss Mitigation fails to provide the right remedy and a retail sale at market value fails to materialize, there's one option left that is preferable to a Trustee Sale:

A cash purchase by an investor.

Selling to an investor is a last resort as it typically results in a lower sales price than a retail sale. However, it's still better than a Trustee Sale which reflects extremely negatively on your credit rating.

The key to the investor strategy is:

1 - Meeting with them immediately after the real estate agent

2- Transparency with regard to the balance owed on the loan so they can communicate whether their cash offer will cover it.

In most cases an investor cash offer won't cover it making it a short sale and subject to lender approval. That's why it's good to be prepared right away for that potential outcome.