Legal Question in Real Estate Law in California

Whatever you can work out with the lender, or file Chapter 13 and make the monthly payments from now on.

Mr. Stone is correct, though his abreviated version may not be clear. Your only options are to pay to come current under the loan, negotiate a loan modification and comply with the terms of the modified loan, or file Chapter 13 bankruptcy, if you qualify, get a plan of payments approved, and then make all the payments required under the Chapter 13 plan.

Calif Legislature has prevented Lenders/Services from filing a Notice of Default until 30 days after contacting you by phone or in person to access your financial situation and provide options. CivCode2923.5

Then they Foreclose.CC2924

Assuming the Lender/Servicer and a conventional lender/loan, they do not have the additional 90 days required by CC2923.6 between NOD and Notice of Trustee Sale. Your time is limited but if your loan is securitized in an MBS trust, they may not have documented the loan properly. If you end up filing a C13, you will be able to confirm the documentation is in order.

If the documentation is incomplete or made up after the fact, you may be able to negotiate a reformation or modification with principal reduction....? This could significantly alter the cost, fees, expenses, and repayment.

In addition, in theory at least, you can refinance.

If you choose the option to "come current under the existing loan," California statutes provide that the lender must reinstate you under the original loan terms and cease foreclosure activity if you pay 100% of what is due within five business days of a foreclosure sale. See Civil Code section 2924c. This is sometimes called a "nonconsensual workout" because the defaulting borrower can force the lender to put him or her back in good standing by paying 100% of the arrearages, costs and penalties.