In California, there are several ways to stop notice of trustee sales and avoid losing a home in foreclosure. To begin with, immediately notifying the mortgage lender is critical if there has not been any prior contact. The owner may ask the lender for a loan modification to lower the payments and change the loan terms. The owner and lender may come to a mutual signed agreement for a loan modification. The lender does not have offer a loan modification, but a lender cannot move forward with foreclosure at the same time they are reviewing an application for a modification. If a loan modification was never offered, or if an application was denied, the homeowner must find another way to stop the trustee sale of the home.

Hire a good Foreclosure Attorney

A homeowner that has received a notice of trustee sale needs to find an experienced foreclosure attorney to help complete the paperwork to stop foreclosure sale or file an emergency bankruptcy. An experienced foreclosure and bankruptcy attorney has the skills and knowledge to understand the unique circumstances surrounding every case. An experienced foreclosure attorney can help stop the foreclosure with the legal options.

Emergency Bankruptcy Filing

The homeowner can immediately stop a trustee sale by filing an emergency bankruptcy petition. The moment an attorney files for bankruptcy relief, all foreclosure activity must stop automatically. It is best to discuss legal option after receiving a notice of default, or notice of trustee sale. Without an experienced attorney and the proper documentation the homeowner could end up with a dismissed case or fail to stop foreclosure sale.

Back Payments Renter

This option permits the homeowner to stay in the home and rent until the back payments are current with the next pending payment. The lender takes a third of the rental payment placing this part in escrow until the back payments are current. The homeowner does not have the option to miss any payments without the property going into immediate foreclosure. This option needs the lender permission, and not everyone qualifies.

Deed in Lieu of Foreclosure

This option deed in lieu of foreclosure transfer ownership, or guarantee deed to a lender to pay off the entire loan avoiding the foreclosure process. The lender’s agreement shows the market value or higher will pay the entire mortgage owed on the home. The homeowner must provide documentation of voluntarily entering this type of agreement.

Short Sale

Another lender and homeowner possibility is the short sale, which the lender permits the homeowner to sell the home, which is pre-foreclosure. This agreement for the sale of real estate will fall short of the balance due on the property. The short sale agreement does not always release the homeowner from the balance of the mortgage debt. However, California Congress passed legislation to preclude deficiencies after a short sale, which means the homeowner no longer owes any debt after the short sale process. The bankruptcy filing may show a negative remark on the homeowner’s credit report for seven years.