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How do I get a home out of foreclosure?
How do I get a home out of foreclosure? How long does it take? What are the steps? Do I need an attorney or real estate agent?
Asked By Thad | San Diego, CA | 724 views | Finance Legal Info | Updated 10 months ago
Answer(5)
Arlene Modarelli
Fathom Realty
You will need to bring your mortgage current or have a loan modification agreement in place.
You should call your mortgage company to see if you have options available. Calling an attorney would be a good idea to help you.
You should call your mortgage company to see if you have options available. Calling an attorney would be a good idea to help you.
- 9 months ago
Helpful (0)
Unhelpful (0)
Raquel Penas Fernandez
RE eBroker Group
Steps to Stop Foreclosure in California
Call your mortgage lender as soon as you miss a payment or receive a Notice of Default (NOD).
Why: California’s Homeowner Bill of Rights requires lenders to explore alternatives before foreclosing. They may offer a repayment plan, forbearance, or loan modification.
Find the loss mitigation department on your mortgage statement. Have financial details (income, expenses) ready to negotiate.
Explore Loss Mitigation Options
Repayment Plan: Add missed payments to future ones (e.g., $300/month extra for a year).
Forbearance: Pause or reduce payments for 3–6 months, ideal if you’re waiting on your home sale.
Loan Modification: Adjust terms (e.g., lower rate or extend loan) to make payments affordable. California law mandates lenders consider this.
Sell the home for less than the mortgage balance with lender approval. A real estate agent can list it as a short sale.
Deed in Lieu of Foreclosure: Hand the home back to the lender to clear the debt, avoiding foreclosure’s credit hit.
File for Bankruptcy (Last Resort)
File for Chapter 13 bankruptcy to trigger an “automatic stay,” pausing foreclosure while you create a 3–5-year repayment plan.
Call your mortgage lender as soon as you miss a payment or receive a Notice of Default (NOD).
Why: California’s Homeowner Bill of Rights requires lenders to explore alternatives before foreclosing. They may offer a repayment plan, forbearance, or loan modification.
Find the loss mitigation department on your mortgage statement. Have financial details (income, expenses) ready to negotiate.
Explore Loss Mitigation Options
Repayment Plan: Add missed payments to future ones (e.g., $300/month extra for a year).
Forbearance: Pause or reduce payments for 3–6 months, ideal if you’re waiting on your home sale.
Loan Modification: Adjust terms (e.g., lower rate or extend loan) to make payments affordable. California law mandates lenders consider this.
Sell the home for less than the mortgage balance with lender approval. A real estate agent can list it as a short sale.
Deed in Lieu of Foreclosure: Hand the home back to the lender to clear the debt, avoiding foreclosure’s credit hit.
File for Bankruptcy (Last Resort)
File for Chapter 13 bankruptcy to trigger an “automatic stay,” pausing foreclosure while you create a 3–5-year repayment plan.
- 5 months ago
- Helpful (0)
- Unhelpful (0)
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Debbie Sagorin
Coldwell Banker Realty
You’ve still got options, Thad!
You may stop foreclosure by catching up on missed payments, refinancing, or working out a repayment plan with your bank / mortgage company. If that’s not possible, selling the home before the foreclosure date can protect your credit and let you keep any equity you’ve built.
Once a foreclosure is complete, it will take 7 years to qualify for another mortgage, (sometimes less, depending on your situation). The key is to act fast - talk with a San Diego real estate agent experienced in distressed sales, (look for "SFR certified" among his/her credentials).
Of course speaking to a foreclosure attorney about your best next move is a good idea too..
You may stop foreclosure by catching up on missed payments, refinancing, or working out a repayment plan with your bank / mortgage company. If that’s not possible, selling the home before the foreclosure date can protect your credit and let you keep any equity you’ve built.
Once a foreclosure is complete, it will take 7 years to qualify for another mortgage, (sometimes less, depending on your situation). The key is to act fast - talk with a San Diego real estate agent experienced in distressed sales, (look for "SFR certified" among his/her credentials).
Of course speaking to a foreclosure attorney about your best next move is a good idea too..
- 1 month ago
- Helpful (0)
- Unhelpful (0)
Robert MacLean
MacLean Realty Group
Talk to the lender who hold the note on the property. They have a whole department that will assist you in the steps necessary and get you the amount needed to bring it out of foreclosure.
- 6 months ago
- Helpful (0)
- Unhelpful (0)
Vishal Sharma
Alliance Bay Realty
Best and fastest step is start conversation with lender.
- 4 months ago
- Helpful (0)
- Unhelpful (0)
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