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Navigating Foreclosure in California: Options and Resources

The prospect of a home going into foreclosure is a distressing and challenging situation that many Californians face. However, it's crucial to understand that there are various options available to homeowners who find themselves in this predicament. In this blog post, I will explore key facts and viable options, including loan modification, the California Mortgage Relief Program, and the possibility of selling the home to creative investors.


Loan Modification:

One potential lifeline for homeowners facing foreclosure is a loan modification. This option involves negotiating with the lender to modify the terms of the existing mortgage to make it more affordable. This may include lowering the interest rate, extending the loan term, or adjusting other terms to better suit the homeowner's financial situation. It's essential for homeowners to communicate openly with their lenders and provide all necessary financial documentation to support their case.


California Mortgage Relief Program:

The state of California offers a Mortgage Relief Program to assist homeowners in danger of foreclosure. This program provides various resources and assistance, including financial counseling, loan modification assistance, and direct aid to eligible homeowners. This government program is free, there is nothing to pay back.  The funding available includes up to $80,000 mortgage relief,  delinquent property taxes, to reduce or eliminate an existing partial claim/loan deferral or to help with late taxes and homeowners insurance for a reverse mortgage.  For more information on program eligibility, you can review this link:  WhoIsEligible | California Mortgage Relief Program (  “Homeowners are eligible for assistance from the program if their household income is at or below the county income limit (150% of their county’s AMI, based on federal limits set for this program). The AMI varies by county and household size.”   According to the AMI Calculator (California Mortgage Relief Program | (, the income limit for a household size of 4 in Orange County is $215,250 and for that same household in L.A. County, the income limit is $189,150.


Selling to Creative Investors:

For those who may not qualify for loan modification or government assistance, selling the home to creative investors can be a viable alternative. Creative financing options, such as lease options, seller financing, or subject-to transactions, allow homeowners to sell their homes quickly and potentially salvage some equity. The key factor in this option is whether the homeowner wants or needs to remain in the home.


a. Lease Options: This involves leasing the home with an option to purchase at a later date. It provides an immediate solution for homeowners who need to move quickly while maintaining the possibility of repurchasing the property.


b. Seller Financing: In this arrangement, the homeowner acts as the lender, allowing the buyer to make payments directly to them. This can be an attractive option for both parties, especially if the homeowner needs income and the buyer has difficulty obtaining traditional financing.


c. Subject-To Transactions: This option involves selling the property "subject to" the existing mortgage. The new buyer takes over the mortgage payments without formally assuming the loan. This can be beneficial for homeowners who want to avoid foreclosure while passing the property to a new owner.




Facing foreclosure in California is undoubtedly a challenging situation, but thankfully homeowners have some options at their disposal. Whether pursuing loan modification, seeking assistance from the California Mortgage Relief Program, or exploring creative financing options, the most critical factor is whether the homeowner wants or needs to remain in their current home. Each option has its merits, and finding the right solution depends on individual circumstances and priorities. Seeking professional advice and exploring all available resources is crucial for making informed decisions during these challenging times. For individuals in need, I offer my services for free to review and discuss your situation and help you understand the options available based on your specific mortgage status and eligibility for relief.  For more information, email me at

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