Facing Foreclosure? Here's What You Need to Know and What You Can Do About It

If you're behind on your mortgage payments and worried about foreclosure, you're not alone and you're not without options. With foreclosure filings rising again across California, it’s more important than ever to understand what you can do before it’s too late.

📈 California Foreclosure Snapshot

Foreclosure activity is climbing across the state as interest rates remain high and property insurance costs surge. Here’s what the numbers show:

• 2,501 foreclosure starts were recorded in California in April 2025

• California ranks third in the U.S. for new foreclosure filings

• The state also led the nation in completed foreclosures during Q1 2025 with 944 homes repossessed

• In cities like Bakersfield and Chico, foreclosure rates are more than double the national average

• About 1 in every 3,893 California homes received a foreclosure filing last month

These numbers are still below the 2008 crisis levels, but they’re rising fast — especially in high-risk and climate-impacted areas.

🚨 What Is Foreclosure?

Foreclosure is when your lender takes legal action to repossess your home after missed mortgage payments. It’s stressful, but there are several ways to stop or avoid it altogether.

🧭 8 Options If You’re Facing Foreclosure

1. Talk to Your Lender Immediately

Lenders often offer
Forbearance
Loan modifications
Payment deferments

Most banks prefer to help you stay in your home rather than go through foreclosure.

2. Apply for a Loan Modification

A loan mod could reduce your monthly payment or extend your loan term.
💡 Tip: Include a clear hardship letter with your application.

3. Request Forbearance

This lets you pause or reduce payments temporarily, giving you time to regroup.

4. Ask for a Repayment Plan

Catch up on missed payments by spreading them out over future months.

5. Explore a Short Sale

If your home’s value has dropped below your mortgage balance, your lender may agree to a short sale, allowing you to sell for less and avoid foreclosure.

6. Sell Your Home Before Foreclosure

Sometimes, the best move is to sell your home on your own terms, before the bank does.

✅ Why this works
Avoids foreclosure on your credit report
You may walk away with equity
Gives you control over the process

🏡 Need help selling fast Connect with a local expert who specializes in preforeclosure or cash offers.

7. File for Bankruptcy

This option pauses the foreclosure process and may help restructure your debts. It’s not for everyone, so consult a bankruptcy attorney first.

8. Speak With a HUD Approved Counselor

They’ll guide you through options and help you talk to your lender. The service is free or low cost.

📌 Special Note for California Homeowners

California offers extra protection under the Homeowner Bill of Rights, and programs like the California Mortgage Relief Program may still be available in certain counties.

Time Matters

In California, once a Notice of Default is filed, you typically have 90 days before a foreclosure sale can be scheduled. After that, the sale can take place in as little as 21 days.

The earlier you act, the more control you have.

✅ Final Thoughts and Next Steps

Foreclosure is serious, but it is not the end. You have more options than you think, and taking action now could save your credit, protect your equity, or help you reset without long term damage.

📣 Need to Sell Your Home Before Foreclosure?

Whether you want to explore a traditional listing or need a fast cash offer, we can help you sell your home quickly and discreetly.

📞 Schedule a confidential consultation

⏳ Don’t wait for a Notice of Sale. Take control of your situation today.