transfer the borrower may have missed at least one payment due on the loan the default may be due to the borrower 39 s economic situation or due to falling real estate values which have made the property worth less than the balance of the loan or loans in the latter situation the borrower is left with a reduced incentive to make payments on his loans regardless of his ability to pay the user of the system who may be alternatively referred to in this description as the facilitator confirms that a property must be sold the facilitator confirms that the borrower is not in a position to either refinance his loan package or to negotiate a modification of the terms of the loan with the lender in many cases the lender servicer may have attempted a refi and or loan mod and they have been unsuccessful the borrower may be experiencing what is known as the u201c default waterfall u201d wherein the borrower is late on payments has little or no equity has been turned down for refi and has been rejected for loan mod when these events have been confirmed it may be determined that the property must change hands once a property reaches this point the borrower has two options some form of short sale or foreclosure it should be noted that there may be multiple loans on the distressed property as well as other liens such as tax or improvement liens if the facilitator confirms that the borrower is not able to in any.