If it appears there is no way to stop house foreclosure in California, the Deed in Lieu of Foreclosure allows you to transfer title on the property over to the lender and be relieved of all or most of your personal indebtedness associated with the loan. This option for avoiding foreclosure offers several advantages to both parties:

• Avoids a formal foreclosure proceeding.
• Prevents public record filing, causing less harm to your credit record
• Eliminates foreclosure costs and legal fees for the lender

The process is complex, requiring projections of the future home value and the fair market value. It also means we must convince the lender to stop foreclosure sale because although you can't afford to make mortgage payments now, you didn't know this was going to happen when you took out the loan. Otherwise they may allege mortgage fraud, and cause even bigger problems for you.