Option	Keep Home?	Credit Impact	Equity Preserved	Time Required
1. Reinstatement	✅ Yes	Low	100%	Days
2. Loan Modification	✅ Yes	Low-Medium	100%*	60-120 days
3. Forbearance	✅ Yes	Low-Medium	100%*	30-90 days
4. AB 2424 Market Sale	❌ No	Medium	90-97%	60-90 days
5. Short Sale	❌ No	Medium-High	0%	90-180 days
6. Deed in Lieu	❌ No	High	0%	30-60 days
7. Foreclosure	❌ No	Severe	0%	Varies

🤔 Feeling Overwhelmed by Choices?

Seven options is a lot to process. Most homeowners I work with feel the same way at first. A quick conversation can help narrow it down to the 1-2 options that actually fit your situation.

Call or text us at (213) 839-4111 for a confidential 15-minute call. No pressure. No judgment.

1. Reinstatement 100% Equity Preserved

What It Is: Pay all missed payments, late fees, and legal costs to bring your loan current.

The Numbers: Typical cost: $15,000-$50,000+. Timeline: Days. Credit impact: Only the late payments already reported.

✅ When This Works: Temporary hardship resolved; you have access to funds; you can afford ongoing payments.

❌ When This Doesn't Work: You can't afford future payments; you don't have the reinstatement amount.

My Take: Ideal if you had a temporary setback but are now stable. Don't reinstate just to delay the inevitable.

2. Loan Modification 100% Equity Preserved*

What It Is: Negotiate new loan terms with your lender to create an affordable payment.

The Numbers: Timeline: 60-120 days. Payment reduction: 10-30% is common.

✅ When This Works: You can afford a reduced payment; documented hardship; haven't had recent modification.

❌ When This Doesn't Work: You can't afford any reasonable payment; income too low or high; you'd rather sell.

California Advantage: Under the Homeowner Bill of Rights, your servicer can't foreclose while reviewing a complete modification application.

3. Forbearance 100% Equity Preserved*

What It Is: Temporarily pause or reduce your mortgage payments, with a plan to catch up later.

The Numbers: Timeline: Typically 3-12 months. Monthly savings: 50-100% of payment.

✅ When This Works: Temporary hardship with clear end date; you can resume and catch up.

❌ When This Doesn't Work: Permanent hardship; you can't catch up; you'd rather sell.

AB 238 Wildfire Relief: California law provides up to 12 months of forbearance for homeowners affected by the January 2025 LA wildfires.

4. AB 2424 Market Sale 90-97% Equity Preserved

What It Is: List your home with a licensed broker, trigger AB 2424's 90-day postponement, and sell at full market value.

The Numbers: Timeline: 60-90 days. Equity preserved: 90-97% after selling costs.

Real Example (Riverside Home): Market Sale ($700,000 sale, $50k costs, ~$250k equity*) vs. Cash Buyer (~$420k sale, ~$20k equity*) vs. Foreclosure Auction ($0 equity). *Assuming $400k mortgage

✅ When This Works: Significant equity; willing to sell; at least 5 business days before auction; home in sellable condition.

❌ When This Doesn't Work: Auction in <5 days; you're underwater; you want to keep your home.

Why This Is Often the Best Option: For homeowners with equity, AB 2424 captures 30-50% more than cash buyer offers and infinitely more than foreclosure.

5. Short Sale 0% Equity Preserved

What It Is: Sell your home for less than you owe, with lender approval.

The Numbers: Timeline: 90-180 days. Equity preserved: $0.

✅ When This Works: You're underwater; can't afford payments; want to avoid foreclosure's severe impact.

❌ When This Doesn't Work: You have equity (market sale is better); lender won't approve; junior liens complicate.

California Advantage: For most purchase-money mortgages, anti-deficiency laws protect you from owing the difference after a short sale.

6. Deed in Lieu 0% Equity Preserved

What It Is: Voluntarily transfer your home to the lender in exchange for release from your mortgage.

The Numbers: Timeline: 30-60 days. Equity preserved: $0.

✅ When This Works: No or minimal equity; want to avoid process; lender agrees; no junior liens.

❌ When This Doesn't Work: You have equity (you're giving away money); you have second mortgages.

7. Foreclosure 0% Equity + Max Damage

What It Is: The lender completes the process and takes your home at auction.

The Numbers: Cost: Loss of equity + severe credit damage (100-150+ point drop; stays 7 years).

When This Might Be Your Only Option: All other options exhausted; no equity; out of time.

When to Explore Other Options: You have equity (use AB 2424); you can afford modified payment; you have time.

🤷 I don't know what to do:

That's completely normal. Most people facing foreclosure feel this way. You don't have to figure it out alone.

A HUD-approved housing counselor (free) or a local real estate professional who understands foreclosure options can help you sort through what makes sense for your specific situation.

Call us today at (213) 839-4111 — no pressure, just clarity.

Which option has the least credit impact?
Reinstatement (if you've only had late payments) or loan modification (no foreclosure reported). Market sales under AB 2424 have moderate impact, less than foreclosure.

Can I use multiple options?
Yes. Many homeowners try loan modification first, and if denied, pivot to an AB 2424 market sale. The key is not waiting too long between attempts.

What if I don't know how much equity I have?
Get a professional market analysis from us (free) or check sites like Zillow/Redfin for estimates. Compare to your loan balance(s).

How do I know if I qualify for loan modification?
Submit a complete application to your servicer. Generally, you need documented hardship and ability to afford a modified payment.

Is it ever too late to do an AB 2424 market sale?
If your auction is scheduled within 5 business days, you may have missed the AB 2424 deadline. However, other postponement options might still be available.

🏠 You're Not Alone in This

Each of these alternatives comes with different trade-offs. The earlier we connect, the more paths we can explore together. If you're facing foreclosure in Riverside, San Bernardino, Los Angeles, or Orange County and want help determining which option fits your situation, we're here to help.

(213) 839-4111

info@realestateeastvale.com

12672 Limonite Ave Ste. 3E #106B, Eastvale, CA 92880
17332 Irvine Blvd Suite 280D Tustin, CA 92780

DRE: 02069559 / 01959226

Disclaimer: This article provides general information about foreclosure alternatives and is not legal or financial advice. Every situation is different. Consult with qualified professionals (attorney, financial advisor, housing counselor) before making decisions about your specific circumstances.