Things You'll Need:
- Title to real estate
- Home mortgage loan agreement
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Step 1
Contact your home mortgage lender directly to ascertain options that may be available to you. Opening the lines of communication with your home mortgage lender is crucial if you want to have any real hope of avoiding foreclosure.
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Step 2
Attempt a modification of your home mortgage loan, taking advantage of incentive programs offered by both the state of California and the federal government. The California Foreclosure Prevention Act is designed to provide you not only with more time to negotiate a home loan modification before a lender can seek foreclosure, but also with incentives to the mortgage holder. For example, a lender can obtain financial protections should you end up defaulting on a modified loan.
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Step 3
Seek a discounted loan from your lender. In this case, the lender lowers the balance due on the loan to permit you the ability to attempt a short sale. (A short sale is selling your property below its established valuation. This can only be accomplished without further loss to you if the lender agrees to discount your loan.) Although there is no California law providing incentives to lenders for a short sale, in many instances it makes financial sense for a lender to cut its losses in this manner.
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Step 4
Engage the services of a California real estate professional versed in short sales. By enlisting professional assistance, you will be in the best position to ensure being able to sell your property and avoid foreclosure.
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Step 5
Place your property on the market with an eye to a short sale. You will want to work closely with your agent to schedule open houses and take other steps to ensure a prompt sale of your property to avoid foreclosure.
