California Foreclosure Bailout Loan

Stop Foreclosure with a California Foreclosure Bailout Loan!

Time is of the essence when it comes to preventing foreclosure in California. A bailout loan can be your lifeline, offering not just financial flexibility but also the chance to regain control over your property. At Global Capital Funding, we understand the urgency of your situation and are committed to providing quick, reliable, and tailored solutions for business owners in distress. 

What Is the Foreclosure Process in California?

In California, foreclosure typically moves forward through a non-judicial process. This means the lender doesn’t have to go to court to take action against the property. Instead, the process is handled through specific legal steps outlined in the mortgage or deed of trust. For property owners, understanding this streamlined approach is key—it can move quickly, leaving little time to respond to default notices or negotiate with the lender.

The process generally starts with a notice of default, followed by a notice of sale if the issue isn’t resolved. Properties can end up at auction much faster than many expect, making it all the more critical to act swiftly if you fall behind on payments.

What Is Foreclosure and How Does the Foreclosure Process Work?

When you finance the purchase of commercial or residential property, the building itself serves as collateral—essentially acting as a safety net for the lender. But if life throws a curveball—maybe a job loss, medical emergency, rising interest rates, or business setback—and you miss several mortgage payments, the lender can initiate a legal process known as foreclosure.

Foreclosure is how a lender reclaims a property after a distressed borrower defaults on their loan. If payments go unpaid, the lender may eventually repossess the property and attempt to sell it, usually through an auction, to recover the outstanding debt. While missed mortgage payments are the classic cause, things like neglected property maintenance or unapproved major renovations can also trigger default.

Common triggers for foreclosure include:

• Job loss or unemployment
• Spike in mortgage payments (especially with adjustable-rate mortgages)
• Inability to pay large balloon
• payments at the end of a loan term
• Illness or injury
• Heavy credit card or tax debt
• Divorce, partnership disputes, or death of a business partner
  Here’s a quick look at how foreclosure typically unfolds:

1. Default and Warning

First, the borrower falls behind. After one or more missed payments, the lender will send warning letters, outlining the arrears and urging the borrower to catch up.

2. The Foreclosure Process: Judicial vs. Non-Judicial

Foreclosure can proceed in one of two ways:

• Judicial Foreclosure: Required if your mortgage doesn’t include a “power of sale” clause. The lender files a lawsuit in court, and the process can take months—or even years—offering borrowers more time to find solutions. States like Florida, New York, and Illinois follow this method.
• Non-Judicial Foreclosure: If your loan agreement does include a “power of sale” clause, the lender can sidestep the courts entirely, moving straight to auction after notifying you. This approach moves swiftly and is common in states such as California and Texas.

3. The Auction

If the situation isn’t resolved, the lender proceeds to auction the property. Bids usually start at the balance owed, plus applicable foreclosure fees. Any excess proceeds (after satisfying the debt and costs) may go back to the original owner.

If no one bites at auction, the lender takes ownership and the property becomes what's called “real estate owned” (REO) until it’s eventually resold—often with the help of a real estate agent.

Timing Matters

Judicial foreclosures provide more time for borrowers but can be lengthy and complex. Non-judicial foreclosures, on the other hand, happen quickly—making it essential for property owners to move fast if they want to protect their assets and avoid losing their property.

In the end, foreclosure is a last resort for lenders—one they prefer to avoid if at all possible. That’s why acting early and exploring alternatives, like a foreclosure bailout loan, can make all the difference.

What Is the Foreclosure Process in California?

In California, foreclosure typically moves forward through a non-judicial process. This means the lender doesn’t have to go to court to take action against the property. Instead, the process is handled through specific legal steps outlined in the mortgage or deed of trust. For property owners, understanding this streamlined approach is key—it can move quickly, leaving little time to respond to default notices or negotiate with the lender.

The process generally starts with a notice of default, followed by a notice of sale if the issue isn’t resolved. Properties can end up at auction much faster than many expect, making it all the more critical to act swiftly if you fall behind on payments.

Navigating the Pre-Foreclosure Stage

Pre-foreclosure can feel like balancing on the edge of a cliff—but it’s not the end of the road just yet. If you haven’t managed to reinstate your loan or secure a forbearance or modification, here’s what typically happens next—and what you can do:

Legal Steps Begin: If your property is in a judicial foreclosure state, the lender may file a lawsuit to request a foreclosure sale. In non-judicial states, a notice of default gets recorded by the trustee, signaling their intent to proceed.

One More Negotiation Chance: Even now, it might be worth reaching out to your lender and giving loan modification talks another go. While success rates at this stage are slim, persistence occasionally pays off.

Consider Legal Counsel: Retaining an attorney to fight foreclosure is an option, but be prepared for potentially steep legal fees and no guaranteed outcome.

Foreclosure Bailout as a Solution: For many, the most practical route is exploring a foreclosure bailout loan. This path can help you avoid protracted legal battles and large attorney bills, letting you direct time and resources toward keeping your property.

Many property owners—like couples in California who faced years of financial roadblocks and even imminent sales—have used bailout loans to regain stability and halt foreclosure proceedings. This option can offer the breathing room you need to recover and regroup.

How Do Foreclosure Bailout Loans Work?

A foreclosure bailout loan is a specialized financing option designed for commercial property owners on the brink of foreclosure. With this loan, you can:

• Refinance your mortgage to halt
  further action from the bank.
• Pay off past due payments and reclaim ownership of your property.
• Achieve peace of mind as you stabilize your finances.
  Applying for a foreclosure bailout loan in California is akin to securing a new mortgage. It can help you:
• Eliminate your current mortgage balance.
• Reduce monthly payments in certain cases.
• Buy time to get your finances back on track.

Can refinancing really prevent foreclosure?
Absolutely. Refinancing your home or commercial property can be a viable strategy to prevent foreclosure—especially if you act before falling behind on payments. By securing a new loan with improved terms, you may be able to lower your monthly payments, reduce your financial stress, and regain control of your property. It’s critical to start the refinancing process early to maintain eligibility and protect your financial interests.

Our team recognizes the critical nature of these situations and is prepared to act swiftly, ensuring you receive the necessary funds before it's too late.

Types of Trust Deeds Accepted

At Global Capital Funding, we structure foreclosure bailout loans using:

First Trust Deeds: Ideal when there are no other liens in place. Most common.

Second Trust Deeds: Used when refinancing is required but a first mortgage still exists. Typically higher risk = slightly higher rate.

Third Trust Deeds (case-by-case): In unique, equity-heavy cases. Approval depends on sufficient exit strategy.
Each deed position affects loan pricing, underwriting, and time to close. We tailor your structure to preserve your property — fast.

What’s Required for Title & Appraisal?

For California properties, we typically require:

Preliminary Title Report: To confirm ownership, lien position, and ensure clean title upon closing.

Current Property Valuation: Either a broker price opinion (BPO) or appraisal.

We’ll determine which is appropriate based on loan amount and speed of closing required.

Repayment Options & Exit Strategies

Most of our California foreclosure bailout clients choose:

• 6–18 Month Interest-Only Loans
• Flexible terms with no prepay penalties
• Monthly or balloon repayment options
• Ability to exit via refinance, property sale, or business revenue restoration

We work with you to ensure the exit plan is realistic and supported by your cash flow or sale timeline.

Risk Disclosure & Realistic Outcomes

Foreclosure bailouts are time-sensitive, high-risk scenarios. That’s why:

• We only approve when equity exists
• We disclose all closing costs upfront
• We assist clients in developing a solid repayment strategy

We do not issue loans that worsen your situation — our job is to create a path to recovery, not a temporary delay.

How Are Appraisals and Title Searches Handled?

Navigating a foreclosure bailout loan involves a couple of key steps behind the scenes—most notably, the appraisal and title search. Both serve to protect your interests, as well as those of your lender, ensuring a smooth and hassle-free process.

Appraisal:
A certified appraiser will assess your commercial property's current market value. They'll look at everything from the building's condition and its rental potential, to recent comparable sales in your area and any unique features your property may have. This thorough evaluation helps determine how much financing you may qualify for and reassures both you and your lender that the loan is backed by real value.

Title Search:
In tandem with the appraisal, a title company will perform a title search to spot any existing liens, unpaid taxes, or legal claims attached to your property. Uncovering these issues early safeguards your lender’s position and ensures you won't encounter any surprises down the road.

Both of these processes are streamlined and handled with care, so you can focus on what matters most—saving your property and moving forward with confidence.

Judicial vs. Non-Judicial Foreclosures: What Sets Them Apart?

When facing foreclosure, it’s essential to understand which process might apply to your property—judicial or non-judicial—as this impacts both your timeline and your options.

Judicial foreclosures involve the court system. If your mortgage does not contain a “power of sale” clause, your lender must file a lawsuit to begin the foreclosure process. You’ll receive formal notification, and you have the opportunity to respond, defend yourself, and potentially negotiate a settlement. The judge will ultimately decide whether the property can be sold at auction or if you get to keep it. States like Florida, New York, Connecticut, and Illinois require this approach, which tends to provide more protection for property owners—but it also takes longer, sometimes stretching over many months or even years.

On the flip side, non-judicial foreclosures are common in states like California, Texas, and Massachusetts, where most mortgages contain a “power of sale” clause. Here, the lender doesn’t need to go to court. Instead, after notifying you of missed payments and allowing a grace period to catch up, the lender can move forward with foreclosure and auction. This process is typically much faster and doesn’t require legal proceedings—meaning time is not on your side if you fall behind.

Key differences to remember:

Judicial Foreclosure: Requires court involvement; slower, offers more protection and more time to resolve the issue.

Non-Judicial Foreclosure: No court required; quicker process, puts more urgency on the borrower to act.

Understanding which process applies to your property will help you plan your next steps and decide whether a foreclosure bailout loan might be the solution you need to protect your investment.

What Causes Borrowers to Fall Behind on Their Mortgage?

Several factors can put property owners at risk of missing mortgage payments and ultimately facing foreclosure. Some of the most frequent causes include:

• Job loss or unemployment, leaving you without steady income;
• Adjustable-rate mortgage increases, where rates and payments suddenly spike;
• Balloon payments coming due, creating a hefty lump-sum you’re not prepared for;
• Unexpected medical issues or injuries that drain your finances;
• High credit card debt or mounting personal loans that stretch your budget thin;
• IRS tax liens or large, unexpected tax bills taking priority;
• Major life changes like the death of a loved one or a divorce;
• Business setbacks or ongoing financial struggles with your company; and
• Disagreements with business partners that disrupt cash flow and operations.

If any of these situations sound familiar, you’re not alone. Life’s curveballs can make even the most responsible owners vulnerable to missed payments—but solutions are available.

Judicial vs. Non-Judicial Foreclosure Timelines: What Borrowers Need to Know

When it comes to foreclosure, the process can unfold in two main ways: judicial and non-judicial.  

Understanding the timeline differences between these methods can make all the difference for borrowers under pressure.

Judicial Foreclosure: More Time, With Strings Attached

Judicial foreclosure, as the name implies, requires the lender to go through the court system. States like New York, Connecticut, and Illinois follow this route. For borrowers, this process generally offers a longer window to resolve their financial troubles. Here’s why:

Legal Steps Add Breathing Room: Lenders must wait until you’re at least 120 days behind on payments before they can kick off foreclosure.
Formal Notices: Expect a written notice and a 30-day period to catch up on payments.

Court Backlogs: Especially in times of heavy caseloads (think: the COVID-19 pandemic), legal proceedings can drag on for months or even years.
This means, if your property is facing judicial foreclosure, you might have more time to get back on your feet or explore solutions like a bailout loan.

Non-Judicial Foreclosure: Fast and Furious

California, Texas, Massachusetts, and several other states often use non-judicial foreclosure. Here, lenders or trustees can move forward without involving the courts:

No Court Delays: The lender typically issues a warning, provides a waiting period, and if payments aren’t made, proceeds directly to foreclosure and auction.

Speed Is the Name of the Game: This process can wrap up much faster—sometimes in a matter of months—leaving borrowers with far less time to act.

If your mortgage has a "power of sale" clause or is secured by a deed of trust, you’re most likely looking at a non-judicial foreclosure and need to move quickly to avoid losing your property.

Key Takeaway: Timing Is Critical

In short, judicial foreclosure offers more breathing room but comes with its own challenges, while non-judicial foreclosure is swift and requires immediate action. Knowing which applies to your situation—and acting decisively—can be the difference between keeping your property and seeing it auctioned off.

With this loan, you can:

• Refinance your mortgage to halt
• further action from the bank.
• Pay off past due payments and reclaim ownership of your property.
• Achieve peace of mind as you stabilize your finances.

Applying for a foreclosure bailout loan in California is akin to securing a new mortgage. It can help you:

• Eliminate your current mortgage balance.
• Reduce monthly payments in certain cases.
• Buy time to get your finances back on track.

What Is the Typical Repayment Term for a Foreclosure Bailout Loan?

Foreclosure bailout loans are usually structured as short-term solutions, most often with terms ranging from one to three years. During this period, many lenders offer interest-only payment options—helping you manage cash flow while you stabilize your business.

Because these loans are temporary, it’s important to have a clear exit plan—such as refinancing into a long-term loan or selling the property—once your financial footing improves. This strategic approach lets you stop foreclosure now while paving the way for a more permanent solution down the road.

Understanding Interest Rates on Foreclosure Bailout Loans

It's important to note that foreclosure bailout loans generally carry higher interest rates than traditional mortgage products. Why? Because lenders take on more risk when working with borrowers who are already facing foreclosure.

Typically, you can expect interest rates for these loans to range anywhere from 8% to 15%, depending on your specific situation and the lender’s criteria. This is noticeably above the average rates seen with conventional commercial loans, such as those offered by established lenders like Wells Fargo or Bank of America. The elevated rates reflect the heightened uncertainty and urgency involved, but for many property owners, this trade-off can mean the difference between saving and losing their business.

How Is Your Foreclosure Bailout Loan Amount Determined?

When it comes to figuring out how much you can borrow through a foreclosure bailout loan, everything centers on your property's value and the amount of equity you hold. Lenders look at several key factors to determine your maximum loan amount—here’s how it works:

Loan-to-Value Ratio (LTV): This is the big one. The LTV represents the percentage of your property’s appraised value that a lender is willing to offer as a loan. For most foreclosure bailout loans, LTV typically falls between 50% and 65%, based on things like your property's location, market conditions, and the lender’s risk tolerance. Occasionally, higher LTVs may be possible in special situations.

Property Appraisal: To get started, the lender arranges for a professional appraisal to establish the current market value of your commercial property. Your LTV is then calculated by dividing your potential loan amount by this appraised value.

Equity Matters: Because foreclosure bailout loans weigh property value more heavily than credit scores, your available equity plays a crucial role. If your current mortgage balance is significantly lower than your property’s value, you’ll typically be eligible for a larger loan—sometimes with the possibility to receive additional cash at closing (beyond just what’s needed to pay off back dues). This extra cash can be used for anything from debt consolidation to property improvements.

Example: If your property is appraised at $1 million and the lender offers an LTV of 65%, you may qualify for a $650,000 loan. If your remaining mortgage is $600,000, after settling your outstanding debt and covering closing costs, you could receive additional funds to put toward your business needs.

Understanding these factors upfront helps you approach the process with confidence and clarity.

Our team at Global Capital Funding recognizes the critical nature of these situations and is prepared to act swiftly, ensuring you receive the necessary funds before it's too late.

What Are the Steps Involved in Applying for a Foreclosure Bailout Loan?

Navigating the path to a foreclosure bailout loan doesn’t have to feel overwhelming. Here’s how you can get started—and move quickly toward financial relief:

Evaluate Your Needs: Begin by reviewing your current loan status and calculating how much is required to pay off your arrears or reinstate the mortgage.

Find the Right Lender: Do some homework to identify reputable bailout lenders—think groups with longstanding experience in commercial finance, such as Wells Fargo, Chase, or Global Capital Funding local commercial specialists.

Gather Your Paperwork: Prepare key documents, including recent mortgage statements, income verification such as pay stubs or business financials, and your most recent tax returns.

Apply for the Loan: Once you have your documents ready, complete the lender's application. Most lenders offer streamlined processes, some even allowing digital uploads and e-signatures for expedited service.

Work with the Lender During Review: The lender will examine your file and may request additional information. Prompt responses can help speed up approval.

Can You Receive Cash-Out Proceeds from a Foreclosure Bailout Loan?

Absolutely—if you have substantial equity in your commercial property, you may qualify to receive extra cash when securing a foreclosure bailout loan. Here’s how it works:

• When the appraised value of your property significantly exceeds your outstanding loan balance, and you meet the lender's loan-to-value (LTV) criteria (often around 60-70%), you can borrow more than what you owe.
• After settling your existing mortgage and covering closing costs, the difference may be paid out to you as cash at closing.

For Example:
Suppose your property is valued at $1,000,000. If a lender is willing to finance up to 65% of that amount ($650,000), and your current mortgage payoff is $600,000, you could potentially receive a cash-out of the difference—minus closing costs and any lender fees. That extra cash might be used for debt consolidation, crucial repairs, or breathing room as you navigate your next steps.

This flexibility is often a vital relief valve for business owners, allowing you to tackle overdue expenses or finally complete those property improvements you’ve been putting off.

By following these steps and maintaining open communication with your lender, you’re better positioned for a timely decision—so you can focus on saving your business and securing your future.

Why an Exit Strategy Matters

It’s important to remember that a foreclosure bailout loan is a short-term solution, not a long-term fix. That’s why lenders—and smart borrowers—require a clear exit strategy from the start. An exit strategy ensures you’re not just postponing foreclosure, but genuinely solving the issues behind it.

Think of it as your game plan for financial recovery:

Avoid repeating history: With a solid strategy, you reduce the risk of falling back into default once the bailout loan ends.

Address the root problem: Whether it’s catching up on missed payments, securing new income, or restructuring your budget, your exit plan should focus on stabilizing your situation for good.

Return to traditional lending: Most borrowers aim to eventually refinance with a conventional lender, once their credit or finances have improved.

For example, if tough times like unemployment caused the crisis, your strategy might include finding new employment or establishing alternative income streams. The goal: to ensure, when the short-term loan matures, you’re ready to transition to a regular mortgage and secure your long-term financial health.

What LTV Percentages Are Available for Foreclosure Bailout Loans?

When considering a foreclosure bailout loan, one important factor is the loan-to-value ratio (LTV)—this essentially determines how much you can borrow compared to the current market value of your property. Most lenders in Californiatypically offer LTV ratios starting at 50% and up to 65%, depending on variables like location, the type of commercial property, and your financial circumstances.

In some situations, especially if the property is in a highly desirable area or you have significant equity, it's possible to qualify for even higher LTV percentages. However, each application is unique and will be carefully reviewed to determine the most viable option for your needs.

Understanding your potential LTV can help you gauge how much funding you may access, which is crucial as you work toward stabilizing your finances and retaining control of your commercial property.

How Appraisal Impacts Your Foreclosure Bailout Loan

When it comes to securing a foreclosure bailout loan, the spotlight isn’t on your credit history—it’s on your property. Lenders primarily rely on a professional appraisal to determine how much they can safely lend.

Here’s how the process unfolds:

Property Value Matters Most: Instead of weighing your credit score, lenders focus on the current market value, location, and condition of your commercial property.

Lender-Ordered Appraisal: An independent appraiser—often from a well-known firm like CBRE, JLL, or Colliers—will inspect your property to establish its fair market value.

Establishing Loan Terms: The appraisal result sets the loan-to-value (LTV) ratio, which directly influences your maximum loan amount and the terms you’ll be offered.

In short, the higher your property’s appraised value, the more financing options become available—potentially making it easier to negotiate favorable terms and keep your business afloat.

Understanding Loan-to-Value Ratio (LTV) for Foreclosure Bailout Loans

When considering a foreclosure bailout loan, one crucial factor lenders evaluate is the loan-to-value ratio (LTV). Simply put, the LTV measures the relationship between the amount you want to borrow and the appraised value of your property. To calculate it, divide the desired loan amount by the current appraised value of your property.

For example, if you’re seeking a $500,000 loan on a property appraised at $1,000,000, your LTV would be 50%. Lenders often use this percentage to assess the level of risk involved—generally, the lower the LTV, the stronger your application appears. In California, commercial property owners can typically secure foreclosure bailout loans with LTVs starting at 50% to 65%, though exceptions may be made depending on property location and specific circumstances. Higher LTVs might be possible, but they'll depend on various qualifications and additional lender requirements.

Are There Prepayment Penalties with Foreclosure Bailout Loans?

When considering a foreclosure bailout loan, it's important to ask about prepayment penalties. These penalties can vary:

• Some lenders may charge a fee if you pay off your loan early, especially within the first few years.
• Other lenders, however, offer more flexible terms and allow you to repay your loan whenever your cash flow improves—without extra costs.

If you’re able to pay down your loan ahead of schedule, you could save a substantial amount in interest over time. Before signing, always review your loan agreement carefully and ask your lender—whether a traditional bank or a private lender like Global Capital Funding, Wells Fargo or Chase—about any potential prepayment fees. This way, you’ll know exactly how much flexibility you have in managing your debt.

Are Interest-Only Payments Allowed on Foreclosure Bailout Loans?

Yes, many foreclosure bailout loans offer the flexibility of interest-only payments during the initial term—often ranging from one to three years. This means you can focus on lower monthly payments by covering just the interest, postponing the repayment of the principal until the loan matures.

This payment structure can help you manage cash flow more effectively while you stabilize your finances and prepare for a more permanent solution. If you need breathing room while you get back on track, this option may be especially helpful.

What Are the Minimum and Maximum Loan Amounts for Foreclosure Bailout Loans?

When it comes to foreclosure bailout loans, both the minimum and maximum loan amounts can vary depending on your property's value and your lender’s risk guidelines. In most cases, the starting point for these loans is typically $500,000, although exceptions can sometimes be made for slightly smaller amounts on a case-by-case basis.

There generally isn't a hard cap on the maximum loan amount—lenders focus on the equity in your commercial property and your ability to meet their requirements. This flexibility ensures that borrowers with substantial equity can potentially secure larger loans to address their foreclosure challenges.

Impact of the Power of Sale Clause on Foreclosure

Not all foreclosure processes are created equal, and much of that hinges on a crucial detail in your mortgage paperwork: the power of sale clause. Think of this clause as a fast pass for your lender—it determines whether foreclosure must wind its way through the court system or takes a much faster track.

If your mortgage includes a power of sale clause, your lender can initiate what's called a non-judicial foreclosure. This means they have the authority to foreclose and sell your commercial property without first filing a lawsuit or waiting for a judge’s approval. The process is generally swift: after missed payments, you'll receive a warning notice and a brief window to catch up, but if the issue remains unresolved, the lender can quickly proceed to auction the property—all without court involvement. States like California, Massachusetts, and Texas commonly use this streamlined approach.

On the other hand, if your mortgage doesn’t include a power of sale clause, your lender must go the judicial foreclosureroute. This path requires the lender to file a formal lawsuit, giving you a chance to respond and potentially defend your position—sometimes with months, or even years, before the sale can happen. Certain states, like Florida, New York, and Illinois, mandate this process, providing borrowers more time and legal protection but making for a much more drawn-out ordeal.

The bottom line:

With a power of sale clause: Expect a quicker, court-free foreclosure process—so you’ll need to act fast to protect your property.

Without this clause: The process is slower and more involved, giving you more opportunities to resolve the issue but less flexibility to delay.

Understanding which process applies to you is key. In urgent, time-sensitive cases—especially with non-judicial foreclosures—the sooner you explore solutions like a foreclosure bailout loan, the more options you’ll have to regain control and avoid losing your business or property.

What Are the Steps Involved in Applying for a Foreclosure Bailout Loan?

Navigating the path to a foreclosure bailout loan doesn’t have to feel overwhelming. Here’s how you can get started—and move quickly toward financial relief:

Evaluate Your Needs: Begin by reviewing your current loan status and calculating how much is required to pay off your arrears or reinstate the mortgage.

Find the Right Lender: Do some homework to identify reputable bailout lenders—think groups with longstanding experience in commercial finance, such as Global Capital Funding, Wells Fargo, Chase, or local commercial specialists.

Gather Your Paperwork: Prepare key documents, including recent mortgage statements, income verification such as pay stubs or business financials, and your most recent tax returns.

Apply for the Loan: Once you have your documents ready, complete the lender's application. Most lenders offer streamlined processes, some even allowing digital uploads and e-signatures for expedited service.
Work with the Lender During Review: The lender will examine your file and may request additional information. Prompt responses can help speed up approval.

By following these steps and maintaining open communication with your lender, you’re better positioned for a timely decision—so you can focus on saving your business and securing your future.

Key Features and Terms of Foreclosure Bailout Loans

Foreclosure bailout loans come with distinct terms and features tailored to address urgent needs—helping you safeguard your equity and avoid the lasting effects of bankruptcy. Here’s what you can expect when considering this type of financing:

Interest Rates and Fees: Unlike conventional mortgages, foreclosure bailout loans typically carry higher interest rates and loan fees. This reflects the increased risk to lenders but enables quick access to the funds you need.

Lenient Credit and Documentation Requirements: Credit challenges—such as missed payments, past foreclosures, or even current bankruptcies—are not automatic disqualifiers. Lenders often do not require strict documentation like tax returns or bank statements, focusing instead on the equity in your property.

Flexible Debt-to-Income Ratios: Higher debt-to-income ratios are generally acceptable, making it easier for business owners in distress to qualify even if their finances have become stretched.

Collateral-Based Approval: Qualification is primarily based on the value of your commercial property, not your credit score or income documentation. Typically, loans are available up to 70% combined loan-to-value (CLTV), allowing you to access the cash tied up in your property.

Shorter Repayment Periods: Terms for foreclosure bailout loans are usually shorter than standard mortgages, with repayment periods often ranging from 1 to 3 years. This allows you time to stabilize your finances and pursue longer-term solutions.

Quick Closings: When time is critical, these loans are structured for expedited processing—often closing within days—so you can act before foreclosure proceedings advance any further.

These unique features make foreclosure bailout loans a practical, life-saving bridge for commercial property owners facing financial hardship.

What Legal Rights and Timelines Do California Borrowers Face During Foreclosure?

Understanding the foreclosure process in California is crucial for any commercial property owner facing financial distress. The laws are designed to provide some protection and opportunity for borrowers, but the clock starts ticking quickly once proceedings begin. Here’s what you need to know:

Key Legal Timelines

120-Day Minimum Period: Federal law requires lenders to wait at least 120 days from your first missed payment before initiating foreclosure, giving you time to explore solutions.

Pre-Foreclosure Outreach: If your property is owner-occupied (1-4 units) and secured by a first trust deed, your lender must try to contact you to discuss alternatives to foreclosure. After contact, the lender must wait an additional 30 days before filing a Notice of Default (NOD).

Notice of Default (NOD): Filing the NOD is the official start to non-judicial foreclosure in California. Once filed, you’re formally notified that your loan is in default—consider this your cue to act fast.

Reinstatement Period: After the NOD is recorded, you typically have three months to “cure” the default by paying the overdue amount plus additional costs and fees. This right to reinstate expires five days before the property’s scheduled foreclosure sale.

Notice of Trustee Sale: At least 20 days before the foreclosure sale, the lender must record and publicly post a Notice of Trustee Sale. The notice is also mailed to all interested parties and published in a local adjudicated newspaper over three consecutive weeks.

Sale Postponements: Trustees can postpone the sale for up to one year if necessary, but must follow strict record-keeping and notification guidelines if the sale date changes.

Borrower Protections and Tenant

Rights Possession After Sale: Following the completion of the foreclosure sale and recording of the Trustee’s Deed Upon Sale, you may lose the right to occupy the property. However, if tenants reside on-site, the federal Protecting Tenants at Foreclosure Act generally allows at least 90 days’ notice to move out—and sometimes longer if a bona fide lease is in place.

Right of Redemption: In most non-judicial foreclosures, you do not have a right to reclaim the property after it is sold. Exceptions exist for homeowners association (HOA) foreclosures, which may grant a 90-day redemption window to both borrowers and junior lienholders. In judicial foreclosures (rare in California), a redemption period may range from three months to a year.

Deficiency Judgments: Most residential non-judicial foreclosures do not expose you to further liability if the sale does not cover the full amount owed. Judicial foreclosures (less common) may allow for a deficiency judgment for up to one year after the sale, depending on loan type and other variables.

Moving Forward With Information

Keep in mind, California allows both judicial and non-judicial foreclosures, though non-judicial (trustee sales) are far more typical for commercial and residential properties alike. For a comprehensive dive into all applicable statutes, consult the official State of California websites or speak to a qualified foreclosure attorney.

Armed with this knowledge, you can make informed decisions and act promptly—because when it comes to foreclosure, understanding the process is half the battle.

Key Steps in the California Foreclosure Process

Understanding the major milestones in a California foreclosure can help you navigate what’s ahead and, more importantly, clarify where a foreclosure bailout loan can make all the difference. Here’s a streamlined overview of what typically happens:

Initial Grace Period: California law requires a 120-day pre-foreclosure period before formal proceedings begin. This period gives property owners valuable time to seek alternatives or catch up on missed payments.

Notice of Default (NOD): If payments continue to be missed, the lender files a Notice of Default, officially starting the foreclosure process. This document is publicly recorded and signals that action is needed immediately.

Reinstatement Window: After the NOD is recorded, borrowers generally have at least three months to reinstate the loan by paying back the overdue amount, plus applicable fees. This right ends five days before the scheduled sale.

Notice of Trustee’s Sale: Following the reinstatement period, a Notice of Trustee’s Sale is issued and publicly posted. The sale date is set at least 20 days out, and the notice is mailed to all relevant parties, posted on the property, and published in a local newspaper several times to ensure broad awareness.

Trustee’s Sale: If the debt isn’t settled, the property is auctioned off at a public trustee’s sale. The highest bidder becomes the new owner. In most commercial cases, there’s no additional right to redeem the property after this sale concludes.

Possession and Tenancy: Once the sale closes and a Trustee’s Deed is recorded, ownership officially transfers. If tenants occupy the property, they are protected under the federal "Protecting Tenants at Foreclosure Act," which typically provides at least a 90-day notice before any eviction.

Postponements and Extensions: Sometimes, the trustee may postpone the sale, and in rare cases, judicial foreclosure might apply, which can extend legal proceedings and potential redemption periods.

California law provides both judicial and non-judicial foreclosure options, but most commercial properties follow the non-judicial route for speed and efficiency. The specific details and timelines can vary depending on the circumstances, property, and lender, so it’s essential to consult reliable sources like the California Department of Real Estate or seek legal guidance for your unique situation.

Understanding Judicial vs. Non-Judicial Foreclosure in California

California property owners facing foreclosure often wonder about the process their lender might take—and what it means for them. In the Golden State, there are two primary paths lenders can follow: judicial and non-judicial foreclosure. Knowing the distinction can help you navigate your options and rights.

Non-Judicial Foreclosure:
This is by far the most common route in California. It’s typically faster because it doesn’t involve the court system. Once the lender’s requirements are met (usually a formal notice of default and a waiting period), the property can be sold at auction. A key point: after your property is sold through a non-judicial foreclosure, you generally do not have the right to buy it back—what’s called a “right of redemption.” There are a few exceptions: if the foreclosure is initiated by an HOA, both borrowers and junior lenders may have a 90-day window to redeem.

Judicial Foreclosure:
In contrast, judicial foreclosure winds its way through the court system. This process is slower, but offers some potential advantages to property owners. For one, there may be a right of redemption, usually lasting from three months up to a year after the sale, allowing you a final window to reclaim your property. Additionally, lenders may seek a deficiency judgment (that is, the remaining balance if the property sells for less than you owe) during this period, depending on the loan and court approval.

What Does This Mean For You?

Most California commercial property owners will encounter non-judicial foreclosure if they default. It’s crucial to understand that, unless it’s an HOA action, once your property is auctioned, it’s gone for good—no second chances. Judicial foreclosures are less common, but if you’re involved in one, there could be a post-sale redemption period and additional financial consequences to be aware of.

Understanding which type of foreclosure you’re facing is a vital first step toward making informed decisions—and exploring foreclosure bailout options before your window of opportunity closes.

What Is a Deficiency Judgment, and When Can It Be Pursued?

A deficiency judgment comes into play when a foreclosed property sells for less than what you owe on the mortgage. In simpler terms, if the sale doesn’t fully cover your debt, the lender might seek a court order requiring you to pay the remaining balance.

In California, whether a lender can go after a deficiency judgment depends on the type of foreclosure:

Non-judicial foreclosure: If your property is foreclosed on without court involvement (the most common route in California), lenders generally cannot pursue you for any leftover balance. This offers some peace of mind during an already stressful process.

Judicial foreclosure: If the foreclosure goes through the courts, there is a window—ranging from three months up to one year after the property sale—during which the lender may seek a deficiency judgment. The exact timeframe can vary based on both the loan structure and the lender.

Knowing your rights and the timelines involved can help you better plan your next steps and protect your financial health.

Who Can Qualify for a Foreclosure Bailout?

To be eligible for a foreclosure rescue loan, you must meet specific criteria:

• Own a commercial property with equity.
• Be in the midst of a foreclosure sale.
  Demonstrate a steady income.
• Meet the lender's qualification standards.

While these are the basics, eligibility can also depend on your ability to repay the loan, your debt-to-income ratio, and whether you have enough equity available in your property. Lenders typically want assurance that you have the financial means to keep up with your new payments, so a solid income and manageable overall debt are essential.

Even if your credit isn't perfect, our dedicated staff is here to explore options that can help you retain your business and property. In many cases, a foreclosure bailout loan can let you avoid bankruptcy, stop foreclosure, and provide the breathing room you need to rebuild and re-establish your credit for the future. It's important to note, however, that taking on a new loan means new obligations—falling behind again could put your property at risk of foreclosure down the road.

With the right guidance and a responsible approach, a foreclosure bailout loan can be a vital tool for protecting your investment and regaining financial stability.

Importantly, there is no restriction on the type of property that can be refinanced with a foreclosure bailout loan. Both residential and commercial real estate are typically eligible, giving property owners a broad range of options when seeking relief. Whether you have an office building, retail space, apartment complex, or even a mixed-use property, you may qualify for this specialized financing solution.

Key Features That Set Us Apart:

• No credit score requirements. Your credit history is not the main focus.
• Higher debt-to-income ratios accepted. We look beyond the numbers to your real potential.
• No need for tax returns, W-2s, or bank statements. We streamline the approval process.
• Currently in bankruptcy? That’s not a deal breaker.
• Up to 70% combined loan-to-value (CLTV). This gives you more borrowing power.

Compensating factors considered. We take a holistic approach to each application.

Our flexible criteria are designed to help you get back on track, no matter what setbacks you’ve faced.

Recognizing that foreclosure can significantly impact your credit score, many foreclosure bailout loans do not require minimum FICO scores. This means that business owners have a real opportunity to refinance—even if delinquent mortgage payments have already been reported to the credit bureaus. With this added flexibility, you can take steps toward financial recovery without being held back by past credit challenges.

Understanding the Foreclosure Timeline

Foreclosure is not a one-step process—it moves through several stages, and a bailout loan can be a solution at nearly any point along the way:

Notice of Default: After missing several payments (often three or four), the lender issues a formal warning. This notice is reported to credit bureaus and filed with the court or county recorder, signaling the start of foreclosure proceedings.

Pre-Foreclosure: If attempts at forbearance, loan modification, or reinstatement have failed, the lender may escalate by filing for a foreclosure sale. Borrowers may try to renegotiate, but the odds of success decrease the further the process goes.

Foreclosure Auction: At this stage, the property is scheduled for public sale. While options become more limited, creative lenders can still step in with a foreclosure bailout loan—even as late as days before the auction—to help you retain ownership or, in rare cases, repurchase the property after auction.

Throughout these stages, traditional options—such as forbearance (pausing payments), loan modification (adjusting terms), or reinstatement (catching up on overdue amounts)—may not always work, especially if time or resources are running out. That’s where a foreclosure bailout loan can provide a crucial lifeline, giving you the funds needed to pay off arrears and reset your financial footing.

Whether you’re navigating the early warnings or facing an imminent sale date, understanding your eligibility and the timing of these options can make all the difference in protecting your property and future.

Even if your credit isn't perfect, our dedicated staff is here to explore options that can help you retain your business and property.

Important Risks and Considerations

While foreclosure bailout loans can provide much-needed relief, it's crucial to step in with a clear understanding of the potential pitfalls. Here’s what commercial property owners in California should keep in mind before moving forward:

Higher Interest Rates: Because these loans are designed for urgent, high-risk situations, rates can be notably steeper than those of traditional loans. Expect to pay more over time.

Added Debt Load: Taking out a bailout loan essentially means replacing your old debt with a new one. If your cash flow is already stretched thin, be sure this new arrangement is sustainable for your business.

Complex Loan Structures: The terms and fine print can be complex. It's vital to read every clause and understand things like prepayment penalties, balloon payments, or variable interest rates. Don’t hesitate to ask for clarification or seek professional advice.

Short Repayment Timelines: Some bailout loans require faster repayment schedules. Make sure the terms align with your business’s capacity to generate revenue each month.

Risk of Repeat Cycle: A bailout loan can provide breathing room, but it's not a long-term cure-all. Without addressing the reasons for your initial financial hardship, there’s a possibility of facing similar challenges down the line.

If you’re unsure whether a foreclosure bailout loan is your best path forward, consider consulting with trusted advisors or financial professionals. This way, you can confidently weigh the benefits against the risks and choose the solution that truly supports your business’s long-term stability.

Is It Possible to Reclaim Your Property After Auction With a Bailout Loan?

Absolutely—there are remarkable situations where a foreclosure bailout loan can make what seems impossible, possible. For instance, we've seen cases where property owners have managed to secure funding and buy back their commercial real estate even after the auction hammer has fallen. In fact, a property investor in California was able to rescue his investment just days before the foreclosure sale thanks to a creative financing solution. In rare yet promising scenarios, families have also utilized these loans to repurchase their property post-auction.

While these situations depend on timing, lender flexibility, and local regulations, it’s clear that a foreclosure bailout loan doesn't only provide a lifeline before the sale—it can sometimes offer a second chance after the fact. If you’re facing a time-critical challenge, don’t lose hope; reach out promptly to explore if these unique solutions could work for your circumstances.

Charting a Path Toward Long-Term Stability

Securing a foreclosure bailout loan is just the beginning—what you do next can make all the difference for your financial future. To improve your chances of qualifying for a traditional mortgage down the road, it’s essential to develop a solid exit strategy.

Here are a few key steps borrowers should consider:

Address the underlying cause: If a temporary setback like unemployment led to missed payments, focus on reestablishing steady income, whether through new employment opportunities or alternative revenue streams.

Practice disciplined budgeting: Reevaluate your expenses, cut unnecessary costs, and prioritize timely debt payments to rebuild your financial foundation.

Improve your credit profile: Make consistent, on-time payments, reduce outstanding debts, and avoid taking on new, unnecessary credit obligations.

Consult with mortgage professionals: Work with trusted advisors or organizations like the National Foundation for Credit Counseling (NFCC) to create a roadmap tailored to your situation.

How Hard Money Lenders Assess Borrowers with Payment History Challenges

If you’ve faced repeated late or missed mortgage payments, you might be wondering how hard money lenders like Global Capital Funding approach your situation. The reality is, lenders generally prefer borrowers who demonstrate consistency and reliability—especially after the loan is funded.

• Chronic late payments or ongoing foreclosure activity can raise red flags. If your existing loan has been in and out of foreclosure or you’ve consistently paid 30, 60, or even 90 days late, many hard money lenders may be hesitant to take on the risk. Simply put, they look for borrowers who are likely to make payments on time, without repeated delays or ongoing issues.
• On the other hand, if your default was an isolated incident—a one-time hardship or a single missed payment due to extraordinary circumstances—some lenders may still be open to working with you. They often consider the context of your situation and whether you’re now in a position to get back on track with regular, timely payments.

In summary, while a rocky payment history can complicate your search for a bailout loan, it doesn’t necessarily close all doors. Demonstrating current financial stability and a clear plan to avoid future late payments can improve your chances of approval.

By taking these steps, you not only resolve immediate issues but also strengthen your ability to transition to a conventional mortgage in the future.

Alternatives to Foreclosure Bailout Loans

A foreclosure bailout loan isn’t your only pathway if you’ve received a notice of default. There are several other strategies property owners can consider before foreclosure becomes inevitable. Here are some practical alternatives:

Forbearance: You may work with your lender to temporarily pause or reduce your mortgage payments. This relief period gives you the breathing room to recover your finances—perhaps by reorganizing your debt or boosting your income. Keep in mind: once the forbearance period ends, you’ll need to repay any missed payments in line with the agreement.

Loan Modification: If your mortgage payments are no longer sustainable, a loan modification could offer relief. Lenders such as Wells Fargo and Chase may be open to adjusting your loan terms—this could involve lengthening the repayment period, reducing the interest rate, or even tacking overdue amounts onto the end of the loan. In some situations, you might be able to negotiate for part of the principal to be forgiven.

Reinstatement: If you’ve managed to resolve your financial setbacks, reinstatement allows you to bring your loan current by paying off all missed payments, fees, and penalties in a single lump sum. This option reinstates your original mortgage terms, putting you back in good standing.

Exploring these options with your lender—or with guidance from a HUD-approved housing counselor—can help you chart the best path forward for your situation.

Important Risks and Considerations

While foreclosure bailout loans can provide much-needed relief, it's crucial to step in with a clear understanding of the potential pitfalls. Here’s what commercial property owners in California should keep in mind before moving forward:

Higher Interest Rates: Because these loans are designed for urgent, high-risk situations, rates can be notably steeper than those of traditional loans. Expect to pay more over time.

Added Debt Load: Taking out a bailout loan essentially means replacing your old debt with a new one. If your cash flow is already stretched thin, be sure this new arrangement is sustainable for your business.

Complex Loan Structures: The terms and fine print can be complex. It's vital to read every clause and understand things like prepayment penalties, balloon payments, or variable interest rates. Don’t hesitate to ask for clarification or seek professional advice.

Short Repayment Timelines: Some bailout loans require faster repayment schedules. Make sure the terms align with your business’s capacity to generate revenue each month.

Risk of Repeat Cycle: A bailout loan can provide breathing room, but it's not a long-term cure-all. Without addressing the reasons for your initial financial hardship, there’s a possibility of facing similar challenges down the line.

If you’re unsure whether a foreclosure bailout loan is your best path forward, consider consulting with trusted advisors or financial professionals. This way, you can confidently weigh the benefits against the risks and choose the solution that truly supports your business’s long-term stability.

What Is the Maximum Loan-to-Value Ratio?

Foreclosure bailout loans in California typically allow you to borrow up to 70% of your property's appraised value, known as the combined loan-to-value (CLTV) ratio. This means you can access a significant portion of your equity to cover outstanding debts and rescue your property, even if you’re facing urgent deadlines. Lenders like Global Capital Funding work swiftly to leverage your available equity—putting a practical, effective solution within reach for property owners in need.

The Advantages of Bailout Loans for Foreclosures

The benefits of obtaining a bailout loan in California are numerous:

• Prevent foreclosure by stopping the process before it's too late.
• Protect your credit score from the damaging effects of foreclosure.
• Fast approval allows you to meet urgent financial demands.
• Flexible repayment plans tailored to your financial situation.

In addition to these advantages, a bailout loan can provide vital financial relief during a challenging period, offering you the chance to avoid bankruptcy and start rebuilding your credit for future conventional financing. Many programs require you to demonstrate an ability to repay the loan, maintain manageable debt-to-income ratios, and have sufficient equity in your home.

However, it’s important to weigh the potential drawbacks. While a bailout loan can save your home and buy much-needed time, taking on new debt may put you at risk of further financial strain. If the new payments become unmanageable, you could still face the possibility of foreclosure down the road.

By understanding both the benefits and responsibilities that come with a foreclosure bailout loan, you can make an informed decision about the best way to protect your home and financial future.

A foreclosure bailout loan acts as a specialized bridge loan, designed for property owners facing the imminent threat of foreclosure. Much like other hard money loans, its defining feature is the ability to close quickly, often making the difference between keeping and losing your property.

With this type of loan, your entire existing mortgage balance is paid off, immediately halting any ongoing foreclosure proceedings. Once the original lender is satisfied and the foreclosure actions are dismissed, you regain control of your property and begin making monthly payments to the new lender—providing a fresh start and an opportunity to stabilize your finances.

In essence, a foreclosure bailout loan not only buys you time but also delivers a clear path back to security, freeing you from the urgency of auction deadlines and the stress of losing your property.

The Risks of Foreclosure Bailout Loans

While bailout loans can offer a crucial lifeline, they aren’t without potential downsides:

Risk of added debt: Taking out a new loan often means increasing your total debt load, which can be challenging if you're already financially stretched.
Possibility of future foreclosure: If you’re unable to keep up with the new payments, you still face the chance of losing your property down the road.

Higher interest rates: Bailout loans sometimes come with steeper rates and fees compared to traditional refinancing, leading to higher long-term costs.

Limited long-term solutions: These loans may solve your immediate crisis, but without addressing the underlying financial issues, you could find yourself in a similar situation again.

It’s important to weigh these risks carefully and speak with a HUD-approved housing counselor or trusted financial advisor before making a decision.

Rebuilding Credit After Avoiding Foreclosure

Once you've sidestepped foreclosure with a bailout loan, you have a valuable opportunity to begin repairing your credit. By making on-time payments on your new loan and keeping up with your monthly obligations, you gradually demonstrate financial responsibility to credit bureaus. Over time, this positive payment history can raise your credit score. Additionally, maintaining your property means you stay positioned to build equity if the market improves—giving you a second chance at both financial security and future borrowing power.

Understanding Reinstatement and Redemption Rights

Before the foreclosure clock runs out, commercial property owners in California have a couple of final lifelines: reinstatement and redemption rights. But what do these terms actually mean for your situation?

Reinstatement Rights:
This is your chance to set things right before the final countdown. If you or a junior lien holder can pay all overdue amounts—plus any associated fees and costs—you may be able to reinstate the loan and stop the foreclosure process in its tracks. However, the window for reinstatement closes five days prior to the scheduled foreclosure sale, so acting quickly is crucial.

Redemption Rights:
Once the gavel falls at a foreclosure sale, your options narrow—but not entirely in all situations. In non-judicial foreclosures, which are the most common in California, borrowers generally have no right to reclaim the property after the sale. However, there are exceptions: for example, if a homeowners association (HOA) initiated the foreclosure, both borrowers and junior lenders are sometimes granted a 90-day redemption window to pay off the full amount and regain the property.

In judicial foreclosures, the redemption period can stretch from three months up to one year, depending on the details of the case. This gives some property owners a longer shot at reversing the process, providing a little more time to regroup and rescue your investment.

Understanding these rights—along with acting promptly—can help you maintain control and preserve your business assets.

Why Choose Global Capital Funding?

As a leader in the industry, Global Capital Funding has earned the trust of commercial property owners seeking financial relief. Here’s why our California foreclosure bailout loans stand out:

Swift processing: We act quickly to avert foreclosure before it becomes irreversible.

• Expertise: Our experienced lenders have a track record of assisting property owners in financial distress.
• Customized loan options: We provide lending solutions tailored to your unique needs.

What Happens If Your Property Reaches the Auction Stage?

Reaching the auction stage in the foreclosure process can feel like the end of the road for many borrowers. At this point, all traditional resolution opportunities have typically expired, and the property is now at risk of being sold to the highest bidder—often in a matter of days.

However, all is not lost. Even at this critical juncture, strategic refinancing through a foreclosure bailout loan may still be possible. Creative lenders and experienced professionals often step in to refinance borrowers at the eleventh hour, helping property owners avoid the permanent loss of their commercial or residential real estate.

Consider this: There have been situations where individuals in cities like Miami were able to save their investment properties just days before an auction thanks to last-minute financing. In unique circumstances, some borrowers have even managed to reclaim their properties after they were auctioned, leveraging specialized post-sale redemption opportunities available in certain states.

Bottom line—while facing an auction is a serious and urgent stage of foreclosure, timely action and the right financial solutions, like a bailout loan, could provide the opportunity to halt the sale, recover your property, and safeguard your future.

What Happens After a Foreclosure Sale?

Understanding what happens to your property after foreclosure can help you plan your next steps. Once the foreclosure process is complete, the lender typically moves forward with a public auction to sell the property—this could be either a commercial or residential asset. Here’s a breakdown of what you can expect:

Auction Process: The property is placed up for bid, and the auction generally begins at the balance owed on your loan, plus any accrued fees and foreclosure costs.

Winning Bidder: The highest bidder at the auction secures the property. Payment is collected, and the ownership is transferred.

Proceeds Distribution: If the winning bid exceeds your remaining debt and associated expenses, the surplus—by law—goes back to you, the former property owner. This is an important protection for borrowers, although the exact process can vary based on California regulations.

What If Nobody Buys at Auction?

In cases where the property does not sell at auction, the lender takes ownership, and the asset becomes classified as "real estate owned" (REO) by the bank. Here’s what typically happens:

• The lender hires a local real estate agent or broker—brands like Coldwell Banker, Keller Williams, and others are frequently involved—to market and sell the property on the open market.
• While the property remains in the lender’s hands, they often work to recoup as much of the outstanding loan as possible through a traditional real estate sale.

Navigating post-foreclosure scenarios can feel overwhelming, but understanding your rights and the typical process can make a world of difference as you explore your next options.

Take Action Now!

Facing foreclosure is daunting, but you don’t have to navigate this challenge alone. Contact Global Capital Funding today to explore your options for a bailout loan. Together, we can work towards saving your commercial property and securing your financial future. Get Started Today!

 2nd & 3rd Trust Deed Bailout Loans – Preserve Equity Without Refinancing

If you're facing foreclosure but want to avoid refinancing your entire mortgage, a 2nd or 3rd trust deed bailout loanmay be the perfect solution. These subordinate liens allow you to keep your existing first mortgage intact—especially if it has a favorable rate—while still accessing the capital you need to stop foreclosure.

How Subordinate Bailout Loans Work:

• Preserve your low-interest first mortgage
• Avoid the costs and delays of a full refinance
• Access funds quickly—often in 5–10 business days
• Minimal documentation required—equity-focused
• Ideal for borrowers with upcoming auction dates or Notices of Default (NODs)

Perfect for High-Equity California Markets:

We fund 2nd and 3rd lien bailout loans throughout California, including Los Angeles, San Diego, Sacramento, and San Francisco. Whether your property is residential, mixed-use, or commercial, we can structure a subordinate loan to buy you time, protect your equity, and position you for refinance or sale.

Speak with a Foreclosure Funding Expert:

Call 1-888-260-7081 or Request a Quote to learn more about your options.

California Foreclosure Bailout Coverage

Global Capital Funding proudly provides foreclosure bailout loans throughout California. Whether you’re facing a Notice of Default or a scheduled trustee sale, our equity-based financing can help you regain control — fast.

We serve property owners in:

• Los Angeles
• San Diego
• San Francisco
• Sacramento
• Fresno
• Oakland
• San Jose
• Riverside
• Santa Ana
• Long Beach

From coastal estates to inland commercial assets, our team is equipped to fund urgent transactions across every major California market.