Know Your Options.

A Notice of Default (NOD) means the formal foreclosure process has begun. In a typical California nonjudicial foreclosure, the lender records the NOD after required pre-foreclosure contact with the borrower. Once recorded, the homeowner generally has 90 days to cure the default, meaning bring the loan current or work with the lender on an alternative.

This period may provide an opportunity to pursue options such as a loan modification, repayment arrangement, selling the property, or another foreclosure-avoidance solution. It is important to act quickly because additional costs and deadlines may apply.

Yes. A homeowner may generally sell a property while it is in foreclosure, provided the sale is completed before the foreclosure sale and the transaction satisfies the lender's payoff requirements.

If the home's value is enough to pay the mortgage and other required costs, the loan can generally be paid off through the sale. If the property is worth less than what is owed, a short sale may be an option, but it typically requires approval from the mortgage servicer or lender.

Because foreclosure deadlines can move quickly, homeowners should determine how much time remains before the trustee's sale before putting a property on the market.

A Notice of Trustee Sale (NTS) is the notice that sets the date, time, and location for the foreclosure auction.

In a typical California nonjudicial foreclosure, the NTS may be recorded after the 90-day period following the Notice of Default. The sale generally cannot occur sooner than the legally required notice period, which is commonly at least 21 days after the Notice of Sale is recorded.

Receiving an NTS means the foreclosure is approaching a scheduled sale, so homeowners should seek professional assistance immediately to determine whether the sale can be stopped or another solution can be completed.

The length of a foreclosure depends on the type of foreclosure and the circumstances surrounding the loan.

In a typical California nonjudicial foreclosure, after the Notice of Default is recorded, the homeowner generally has 90 days before the lender can proceed with recording a Notice of Trustee Sale. The Notice of Trustee Sale then establishes the auction date, subject to the required notice period.

The process can take longer if the homeowner pursues a loan modification, repayment arrangement, short sale, legal remedy, or another foreclosure-avoidance option.

Homeowners facing foreclosure may have several potential options depending on their financial situation, the loan, the property, and how far the foreclosure has progressed.

Potential options can include:

• Reinstatement — paying the amount necessary to bring the loan current.

• Loan modification — requesting changes to the terms of the mortgage to make payments more manageable.

• Repayment or forbearance plan — working with the servicer to address missed payments over time.

• Selling the property — selling before the foreclosure sale and using the proceeds to satisfy the loan.

• Short sale — selling the property for less than the amount owed, subject to lender/servicer approval.

• Deed in lieu of foreclosure — voluntarily transferring the property to the lender in exchange for resolving the foreclosure, when accepted by the lender.

• Bankruptcy — in appropriate circumstances, bankruptcy may provide legal protections that affect the foreclosure process. This should be discussed with a qualified bankruptcy attorney.

• Legal defense or court action — depending on the circumstances, a homeowner may have legal claims or defenses that should be evaluated by an attorney.

California's Homeowner Bill of Rights also provides certain protections for eligible homeowners seeking foreclosure alternatives, including requirements concerning foreclosure-prevention options and a designated point of contact in qualifying circumstances.

Important: The best option depends heavily on the homeowner's individual circumstances. Homeowners should act early rather than waiting until immediately before a scheduled trustee sale.