Can You Refinance During Pre-Foreclosure in California?

Mark Hicks
4 days ago
3 min read

If you're afraid about foreclosure after receiving a Notice of Default, remember that you still have choices. Even in pre-foreclosure, Seabrook Group has assisted numerous homeowners in California in regaining control of their finances, protecting their equity, and understanding their rights. "Can I refinance during pre-foreclosure?" is one of the most frequent queries we receive. You can, but timing and planning are key. That's the quick answer. Let's go over what's feasible, how it operates, and if refinancing is the best course of action for you. In this blog we will help you understand how you can refinance during pre-foreclosure in California.

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What Is Pre-Foreclosure in California?

Once your lender files a Notice of Default (NOD), typically following ninety days of nonpayment, pre-foreclosure commences.

This is what takes place at this point:

Your home hasn't been put up for auction yet, so you still have the option to sell, refinance, or adjust the loan terms;
You are legally the owner even though you are formally in default; and
You normally have another ninety days before a Notice of Trustee Sale is recorded.

You have this window of opportunity to act and prevent foreclosure from appearing on your credit report or public record.

Can You Refinance During Pre-Foreclosure?

In California, refinancing during pre-foreclosure is feasible, but it is contingent upon many important factors: You might be eligible if:

You are able to locate a lender who is prepared to work with a pre-foreclosure case.
You have enough home equity.
Your credit hasn't fallen too low yet, and you can provide proof of steady income.

You may struggle to qualify if:

If you have several defaults on your record,
are underwater on your mortgage,
Have already received a Notice of Trustee Sale, you might find it difficult to qualify.
Refinance requirements are not met by your income or credit score.

Refinancing vs. Other Relief Options: What’s the Difference?

It’s common to confuse refinancing with loan modification or forbearance, but they’re very different paths:

Option	What It Does	Ideal For
Refinance	Replaces your current loan with a new one	Borrowers with equity & okay credit
Loan Modification	Adjusts the terms of your current loan	Borrowers struggling financially
Forbearance	Temporarily pauses your payments	Short-term hardship (e.g. medical leave)

At Seabrooke Group, we’ll help you evaluate which option fits best, not just what sounds good.

What Types of Refinance Are Available?

If refinancing is right for you, here are your main options:

Traditional Refinance

Replaces your loan with a new one that has a better rate or is easier to handle.
Needs proof of income and good credit.

Cash-Out Refinance

Allows you to tap into equity to pay off other debts
Riskier during pre-foreclosure, but viable in some cases

FHA Streamline Refinance

Faster refinance with fewer paperwork
Only applicable if your current loan is insured by the FHA.

When Refinancing Makes Sense and When It Doesn’t

Refinance may work if:

You wish to maintain your house for the long run.
You have at least 10% to 20% equity.
Your employment and income are steady.
You still have more than 60 days until the auction.

It may not be right if:

Your foreclosure is only a few days away.
You don't have any deep credit harm or equity.
Selling could better protect your residual value.

What If You Can’t Refinance?

There are alternatives to refinancing.

Selling before foreclosure might be the best course of action if you're out of time or options.
This can help you maintain your equity, protect your credit score, and keep your foreclosure record private.

Even during foreclosure delays, Seabrooke Group specializes in quick, strategic home sales. We will evaluate your circumstances with empathy rather than coercion. For a full breakdown of all foreclosure alternatives; refinance, loan modification, short sales, deed-in-lieu, and more check out the California Department of Real Estate’s The Homeowner’s Guide to Foreclosure in California.

How Seabrooke Group Can Help

Numerous California homeowners in similar circumstances have benefited from our assistance. We'll meet with you (in person or virtually), go over all of your options, and put you in touch with