What is Foreclosure?

In the Bay Area, the lender can sell or take the property as stated in the terms of the mortgage contract if a homeowner is unable to make principal and/or interest payments.

What Happens When a Mortgage Payment is Missed?

After missing 3 mortgage payments, foreclosure can unfortunately happen. Your lender then has legal rights to force you to move out and repossess your home. A Deficiency Judgment can be pursued if your property is worth less than what you owe on your loan. It is important to avoid foreclosure if possible because both a Foreclosure and a Deficiency Judgment can affect your credit in the future.

How Can a Foreclosure be Avoided?

First of all, if you are struggling to make your payments, call or write to your lender’s Loss Mitigation Department right away. Explain your situation and be prepared to provide them with financial information like your monthly income and expenses. Just follow these 3 simple rules:


  • Contact your lender as soon as you know your payment will be late.
  • Never ignore the lender’s letters or phone calls.
  • Don’t assume that your situation is hopeless.

Disclaimer: Information contained herein is provided to assist real estate professionals and is not an advertisement to extend consumer credit as defined by section 1026.24 of Refulation Z. BlueCrest Mortgage, a California Corporation, NMLS ID 1930841