Mitigation in California

What it means in California:
Mitigation in California refers to alternatives to foreclosure that lenders and borrowers can pursue to address default or imminent foreclosure.

Key points:

• Usually pursued before a trustee sale
• Involves negotiations with lenders
• Often overlaps with bankruptcy and foreclosure defence

Common mitigation options in California:

• Loan modification
• Forbearance agreements
• Repayment plans
• Short sales
• Deeds in lieu of foreclosure

California-specific considerations:

• California’s non-judicial system makes early mitigation especially important
• Lenders are not required to accept mitigation options
• Certain state rules mandate notice requirements and timelines for foreclosure, affecting mitigation timing

Whom it applies to:

• California homeowners experiencing financial hardship
• Borrowers seeking alternatives to foreclosure
• Property owners exploring non-litigation solutions