What Drea de Matteo’s Story Teaches Us Foreclosure Defense

When news broke that The Sopranos star Drea de Matteo used a side hustle to save her home, it highlighted a reality I see often in my practice and research: many homeowners are one financial setback away from a crisis. However, while a sudden influx of cash is one way to stop a sale, foreclosure defense involves much more than just catching up with missed payments.

After two decades of practice and more than a decade as a law professor, I’ve found that true protection comes from understanding how to negotiate with the lender, state assistance programs, planning out strategies such as discovery to delay the foreclosure, and the power of the Bankruptcy Code and automatic stay.

While de Matteo’s solution was unconventional not only as a Hollywood celebrity but also by joining OnlyFans, her situation is not. When income fluctuates, homeowners need to know their options. My experience with clients is that I see homeowners wait too long to act. Whether you start a side business or seek legal help with a bankruptcy lawyer or foreclosure attorney, timing is everything.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on January 17, 2026.

Key Strategies in Foreclosure Defense

• Negotiate Early: Contact your lender regarding deferment or loan modification.
• Explore Local Aid: Research city, county, or state foreclosure assistance programs.
• Voluntary Surrender: Consider a “Deed in Lieu of Foreclosure” to avoid a judgment.
• Legal Defense: Hire an attorney to challenge procedural errors or predatory lending.
• Chapter 13 Bankruptcy: Use the law to force a repayment plan and save the home.

The Power of Deferment and Negotiation

Be proactive with the lender. Start by contacting your mortgage lender and ask about deferment programs that allow missed payments to be added to the end of the loan term.

For example, if you have five years remaining but need to skip three months of payments to get your finances in order, the lender may extend your term to five years and three months. This buys you the “breathing room” necessary to stabilize your income without the threat of foreclosure.

Utilizing Local Assistance Programs

Don’t overlook government-backed help. Many municipalities offer foreclosure assistance programs that provide grants or low-interest loans to help bridge the gap.

In my decade of practice in Hialeah, Florida, I saw firsthand how local programs helped homeowners with down payment assistance and foreclosure avoidance. These often come with “strings attached” such as a requirement to remain in the home for a set number of years, but they are a vital resource for those who qualify. These local programs are a financial lifeline and are often overlooked.

The “Deed in Lieu of Foreclosure” and the 1099 Trap

A Deed in Lieu of Foreclosure is a voluntary surrender of your home. You give the property back, and the lender stops the foreclosure. In some cases, lenders may even offer “cash for keys” to avoid the expense of litigation.

The Caveat: Be wary of tax consequences. If you owe $100,000 more than the home is worth, the lender may issue a 1099-C (Cancellation of Debt). The IRS generally views forgiven debt as taxable income. While lobbyists have ensured the law favors creditors, a savvy accountant or a bankruptcy filing can often mitigate these “phantom” tax liabilities.

When to Hire a Foreclosure Defense Attorney

Sometimes, the system simply fails. I have seen lenders attempt to foreclose on the wrong property or fail to account for payments made after a mortgage transfer.

In my own life, a lender once failed to notify me of a transfer. I kept paying the old company, and they kept cashing the checks, leading to a foreclosure filing. Because I am an attorney, I was able to resolve it quickly by filing a response to the complaint. For a non-lawyer, these clerical errors can result in the loss of a home if not contested in court.

Chapter 13 Bankruptcy: A Tool to “Catch-Up” on Missed Payments

If negotiations fail and a side hustle isn’t enough, Chapter 13 Bankruptcy is the most powerful tool for saving a home.

Upon filing, the Automatic Stay goes into effect, immediately halting the foreclosure sale. Unlike Chapter 7, which only delays the process, Chapter 13 allows you to cure the “arrears” (the amount you are behind) over a 36 to 60-month period. You continue your regular monthly payment while slowly chipping away at the past-due balance through a court-ordered plan.

Professor’s Note: While the Automatic Stay stops the foreclosure, there could be a delay between the mortgage lender learning from the bankruptcy clerk’s office of the bankruptcy filing. So debtors should take the extra step of filing a Suggestion of Bankruptcy so that the foreclosure court is immediately notified.

The Professor’s Conclusion

The foreclosure process is not an overnight event. There’s plenty of time to take action to save your home. Whether you follow Drea de Matteo’s lead and find a new revenue stream or utilize the protections of the Bankruptcy Code with the Automatic Stay, the goal is the same: stay informed and act immediately.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

You can find additional categories by clicking below or by using the search feature at the top of this page:

• Bankruptcy
• Insights & Analysis

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on Updated on January 31, 2025, and October 2, 2025.