Behind on your mortgage? Know your options before foreclosure

Falling behind is stressful, and it is more common than people admit. The earlier you act, the more options you have. A cash sale is one of them, but it isn't always the best one.

You usually have more options early

In California, foreclosure generally moves in stages, and each stage has its own notices and deadlines. Timelines vary, so the first step is to find out exactly where your loan stands. Contact your lender and consider speaking with a HUD-approved housing counselor (the service is typically free) or a real estate attorney before deciding anything.

Options to consider

Catch up or modify the loan. Lenders sometimes offer repayment plans, forbearance, or modifications. If you can keep the home and keep up with payments, this may be the best outcome.
Sell the house traditionally. If you have equity and enough time, listing with an agent usually brings the highest price.
Sell for cash. If time is short, the house needs work, or you want certainty, a direct sale can pay off the loan and may leave you with some money. We can often close in as little as two to three weeks.
Short sale or other lender-approved options. If you owe more than the house is worth, your lender may agree to accept less than the full balance. An attorney or counselor can walk you through it.

Protections for homeowners in foreclosure

California has rules that apply when a company buys a home from an owner who is facing foreclosure. Among other things, they are designed to protect homeowners from being rushed or misled. We recommend that you have an attorney review any agreement before you sign, no matter who the buyer is. If someone pressures you to sign quickly or asks for money up front, slow down.

Our honest take

If you can realistically keep the home, or if selling on the open market would leave you much better off, we'll tell you that rather than push a sale. A cash offer makes sense for some people in this situation, and it is worth a conversation, but it should be your decision with all the facts in front of you.

Common questions

How fast can you close?

Often in two to three weeks, and sometimes faster or slower depending on your timeline and the title work. If you have a sale date, tell us right away.

Will I get any money after the loan is paid off?

That depends on how much the house sells for and what you owe. We will show you the numbers before you agree to anything.

Other situations

Where we buy

Sacramento Elk Grove Citrus Heights Folsom Rancho Cordova Carmichael Fair Oaks Orangevale Galt Rancho Murieta