A foreclosure and conflict resolution strategy are essential for a distressed real estate investor to retain their property. In this era of market concentration, the investor must determine if the sale of the distressed properties is the only remedy or if there is an equally good solution elsewhere. The investor must also make sure that the new acquisition does not violate any existing covenants or commitments. Foreclosure and conflict resolutions can also be achieved through a successful negotiation with the lenders. As with any negotiation, one must set realistic expectations and understand all the nuances of the market, including the potential for loss.

A foreclosure and conflict resolution specialist have the option of either purchasing the homeowner's deed, or committing themselves to a "nuisance contract" to mitigate the homeowner's liability exposure in the event of foreclosure. Under a deed of purchase, the investor would commit to buy at a pre-determined price, plus accrued interest and fees. However, these types of arrangements often have a number of traps that can cause investors great financial stress and set them up for later foreclosure and conflict. Another option for a buyer is a "nuisance contract", which would resolve some or all of the existing liabilities. Investors involved in these types of transactions should be aware of the expenses associated with a nuisance lawsuit.

One of the most beneficial foreclosure and conflict resolution strategies is to utilize both a deed in lieu and a nuisance lawsuit as a means of avoiding the costs of foreclosure. A deed in lieu will effectively terminate all current commitments, which means that the investor is no longer obligated to make payments on mortgages or loans. This creates a significantly lower risk to the investor, as they will not be committed to any future commitments. On the other hand, a nuisance lawsuit can significantly limit and delay the ability of the investor to recoup monies lost due to default or foreclosure. These two strategies combine to provide real estate investors with the best means of avoiding high market concentration and addressing the specific issues that may arise in any given situation.