Foreclosure and conflict can be dealt with effectively only if the parties involved come to an agreement regarding the size of the mortgage, and the cost of any necessary repairs. Negotiations between buyer and seller usually result in a Foreclosure and Conflict Settlement Package (FCSP), which address the concerns of both sides and are presented to the court for approval. This is a binding contract between the buyer and the seller that clarify all financial obligations and responsibilities. The FCSP is designed to provide maximum protection to the vulnerable homeowners from the threat of immediate foreclosure and the resulting chaos that ensues. A good negotiation results when all concerned parties to come to an understanding regarding their responsibilities and financial obligations, and this enables a foreclosure to be avoided.

The primary aim of the FCSP is to provide "market value" to the sellers by allowing them to realize maximum flexibility in accepting offers, while avoiding a forced foreclosure, which involves unreasonable rental payments. Essentially, the buyer's offer covers the seller's non-compete commitments, debt obligations, judgments, tax liens, and other related duties. In addition to covering these Seller Obligations, the buyer's remedy package also includes a non-recourse commitment. This means that if the Seller does not abide by the terms of the remedy package, the buyer is not obligated to do so. The non-recourse commitment also covers the obligation of the Seller to notify the Seller and the Office of the District Attorney if any action is initiated or brought against the Seller under the FCPS.

A Foreclosure and Conflict Settlement Package are available at most financial institutions and through many brokerages. It can be tailored to suit the specific needs of each situation, including consideration of the high market shares and the possibility of an avoidance of a forced foreclosure. In this context, it must be understood that there are many reasonable solutions to the complex issues involved in foreclosure and conflict resolutions. They include but are not limited to, short sales, short lease options, and deed in lieu of foreclosure. Each solution has its own advantages and disadvantages, as well as its own time requirements and expenses.