A missed payment or even a Notice of Default is not the end of the road. Your options include working with your loan servicer on a loan modification, repayment plan, or forbearance; a short sale if you owe more than the home is worth; or selling before the auction to protect the equity you've built. Free counseling is available, and acting early keeps the most doors open.
Your options, plainly
- Talk to your servicer first. California's Homeowner Bill of Rights requires lenders to pause foreclosure while reviewing a loan-modification application. You may qualify for a modification, a repayment plan, or forbearance — especially after a disaster like fire or flood.
- Sell before the auction to protect your equity. If your home is worth more than you owe, selling lets you pay off the loan and keep your equity instead of losing it in a foreclosure. This is the option many homeowners don't realize they still have.
- Short sale. If you owe more than it's worth, a short sale with lender approval is usually far better for your credit than a completed foreclosure.
- Free counseling. HUD-approved, bilingual foreclosure-prevention counseling is available locally through Fair Housing Advocates of Northern California, at no cost.
A California law that can buy you time: AB 2424
As of 2025, AB 2424 lets a homeowner postpone a trustee's sale by up to 90 days simply by listing the home for sale with a licensed agent. If selling is the right path to protect your equity, listing can create the time you need to actually complete that sale. The deadlines matter, so it's worth moving early.
What I can — and can't — do for you
I'm a Realtor, not an attorney or your lender, so I won't pretend to give legal or tax advice. What I can do is give you an honest value on your home, tell you whether selling would protect your equity, and — if it makes sense — sell it quickly and with dignity. I'll also point you to free counseling and legal resources so you can make the decision with all the facts. You'll get a straight answer and a clear path — not a sales pitch.
Let's find out where you actually stand
A confidential, no-cost conversation: what your home is worth, whether selling protects your equity, and what your timeline looks like. The sooner we talk, the more options you have.
Book a confidential call707-849-6775 · alicia@excelleraterealestate.com · DRE #02272644
This is general information, not legal, tax, or financial advice. For your specific situation, consult a HUD-approved housing counselor, a qualified attorney, and your loan servicer.