Frequently Asked Questions

Mortgage default occurs when a homeowner fails to make required mortgage payments according to the terms of their loan agreement. Sometimes, a loan will be several months or even years delinquent before the formal foreclosure process has started. Being in default does not mean you have lost your home — there are options available to help.

There are several paths available depending on your financial situation. These include loan modifications, repayment plans, forbearance agreements, short sales, and deed-in-lieu of foreclosure. AM Solutions works with homeowners to assess their specific circumstances and identify the most appropriate solution — whether that means getting back on track with payments or transitioning out of the home with minimal impact.

AM Solutions is a private mortgage investment firm that specializes in acquiring defaulted residential mortgages. When we contact you, our first priority is to understand your financial situation and counsel you on your best available options. Our goal is to help you avoid foreclosure, protect your credit where possible, and find a path forward that works for your family.

Generally no. Credit score is most impacted when payments are first missed. Working with us to reach a structured resolution — such as a loan modification or assisted sale — can help minimize further damage to your credit compared to allowing foreclosure to proceed.

A loan modification is a permanent change to one or more terms of your mortgage loan — such as the interest rate, loan term, or principal balance — that makes your monthly payment more manageable. Modifications are designed to help homeowners who are struggling financially but want to remain in their home.

A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance, with the lender's approval. It is often used as an alternative to foreclosure when the homeowner can no longer afford the home. In many cases a short sale will not affect your credit, and it is generally less damaging than a foreclosure and allows you to move forward more quickly.

The foreclosure timeline varies by state and individual circumstances, but the process typically takes anywhere from a few months to over a year. During this time, homeowners have opportunities to explore alternatives. The sooner you reach out for help, the more options are available to you.

There is no cost to call our Homeowner's Help Hotline and speak with a workout specialist. We encourage homeowners to reach out as early as possible — the earlier we connect, the more options we can explore together.

Unfortunately, homeowners in financial distress are often targeted by scammers who charge upfront fees and promise results they cannot deliver. Warning signs include requests for payment before services are rendered, pressure to sign over your deed, and instructions to stop communicating with your lender. If you suspect a scam, report it to the FTC at reportfraud.ftc.gov. You can also review the FTC's guidance linked on our Resources page.