Foreclosure is a legal process in which a lender takes possession of a property from a borrower who has defaulted on their mortgage payments. In California, there are several alternatives to foreclosure that borrowers may consider:

  1. Loan modification: This involves renegotiating the terms of the mortgage with the lender, such as reducing the interest rate, extending the repayment period, or lowering the monthly payments.
  2. Short sale: This involves selling the property for less than the amount owed on the mortgage, with the lender agreeing to accept the sale proceeds as full satisfaction of the debt.
  3. Deed in lieu of foreclosure: This involves the borrower voluntarily giving the property back to the lender in exchange for a release from the debt.
  4. Forbearance: This involves the lender agreeing to temporarily suspend or reduce mortgage payments, giving the borrower time to get back on their feet.
  5. Refinance: This involves replacing the current mortgage with a new loan, potentially with a lower interest rate and/or longer repayment period.

It’s important for borrowers in California to explore all available options and seek professional guidance before making a decision.

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