OPTIONS for default period.

 Any of these options need to be completed within the 90 day default period:

• Do Nothing
• Debt Counseling
• Loan Modification
• Forbearance Agreement - For emergencies only (hardship)
• Deed in Lieu of Foreclosure
• Payoff - Refinance - Reinstatement
• Sale (Must happen during 90 day period) Agent ask for help - Disclosures - CC Code 1695-1695.17

To be safe, if a property is in default, real estate agents should consult knowledgeable attorney regarding the correct legal procedures before getting involved with the sale.

• Hard money loans - Lender, realtor, investor working together to sell the property
• Short Sale
• Beware bankruptcy.       Chapter 7 - sidetracks a lender's right to foreclose until it gets permission to go forward with the foreclosure proceedings by requesting and receiving "relief from the automatic stay" from the court.                    Chapter 13 - With big arrears on their mortgage that they can't pay off right away is the common reason for filing.  The solution to that problem that allows them to keep their home is to file chpt 13.  This plan provides for continuing monthly payments on the mortgage and paying off the arrearages over the file of the plan (3-5 years).

T I M E = the most important word in the process, and remember your time as an agent is valuable too. These tips are for California foreclosure, some work the same in other states and some are exclusively California.