When a homeowner is struggling with mortgage payments, most people assume a short sale is the only escape before foreclosure. But the truth is: a short sale is just one option—often not the fastest, not the easiest, and not the most beneficial.
California homeowners also have alternatives like loan modifications, forbearance, repayment plans, selling to a cash buyer, reinstatement, and even letting the lender take the house through a deed-in-lieu. And depending on your situation—behind on payments, underwater on your loan, facing a job loss, or dealing with major repairs—some options can help you avoid foreclosure much faster than a short sale.
If you’re exploring ways to get out from under your mortgage quickly, this guide walks through every viable alternative in California.
(For related help, see our guide for Foreclosure in California).
Why Many Homeowners Want Something Faster Than a Short Sale
Short sales sound like a good idea—sell your home for less than you owe and avoid foreclosure. But they come with drawbacks:
Short Sale Challenges
- They require bank approval (which may take 60–180+ days).
- The bank may still ask for documentation proving hardship.
- You must list the home on the open market (showings, inspections, repairs).
- The buyer can cancel at any time before bank approval.
- You may still owe a deficiency balance depending on the loan type.
- You lose control over timing and the closing schedule.
For homeowners with urgent issues—job loss, impending auction date, divorce, inherited home, or severe repairs—waiting months isn’t realistic.
This is exactly why most distressed sellers in California look for quicker, simpler alternatives.
The Fastest Short Sale Alternatives to Escape Your Mortgage
Below are the most common solutions that allow homeowners to get relief without waiting on a lengthy short sale approval.
1. Sell the House As-Is to a Cash Buyer
This is by far the fastest alternative, especially if the home needs work or you’re behind on payments. To understand how timing affects this option, homeowners can review the California foreclosure timeline from the California Attorney General.
Why It’s Fast
Cash buyers:
- Close in as little as 7–14 days
- Buy homes as-is, no repairs, no showings
- Can often stop the foreclosure process (depending on the auction timeline)
- Don’t need bank approval or financing
- Allow you to choose your closing date
In California, around 30% of distressed homes are bought by investors because homeowners prefer fast, certainty-based exits instead of lengthy short sale processes.
Real Seller Example:
A homeowner in San Bernardino, “Tina,” was 4 months behind and owed more than the home was worth because of a bad HELOC. A real short sale would’ve taken 90+ days and risked auction cancellation. Instead, she chose a cash sale, closed in 12 days, and avoided foreclosure completely.
2. Loan Modification
A loan modification permanently changes your loan terms to make your payment more manageable.
What Lenders May Adjust
- Interest rate
- Loan term
- Principal balance (rare, but possible)
- Payment structure
When It Works Best
- You want to keep the home
- You have some income but need lower payments
- You can prove a legitimate hardship
Timeline
30–90 days, depending on lender cooperation.
Real Seller Example
A homeowner in Lancaster, “Miguel,” had a payment jump after an ARM adjustment. Instead of selling, he got a 40-year modified loan with a reduced interest rate. Payment dropped by $640/month.
3. Forbearance (Temporary Payment Pause)
This is a short-term pause or reduction in mortgage payments.
What It Does
- Gives breathing room after a hardship
- Buys time to sell the home normally
- Prevents immediate foreclosure action
Forbearance skyrocketed during the pandemic—in 2021, nearly 4.7 million Americans used it to avoid foreclosure.
The Catch
Payments get added to the end or are due after the pause ends.
But it can give homeowners precious time to list the home or arrange another plan.
4. Repayment Plan
If you’re behind by only a few months, lenders may allow you to roll your missed payments into a structured plan.
Good For
- Temporary income loss
- Short-term hardship
- Situations where keeping the home is the goal
Not ideal for someone deeply underwater or facing long-term financial difficulty.
5. Reinstatement
Reinstatement means paying the past-due balance in full to bring the mortgage current.
You can learn more about how reinstatement works from this helpful guide on mortgage reinstatement options from the CFPB.
Where People Get the Funds
- Tax return
- Family help
- Settlement
- Retirement withdrawal
- Personal loan
- Cash-out refinance (if equity is available)
Reinstatement immediately stops foreclosure—but it’s only realistic if arrears are small.
6. Deed in Lieu of Foreclosure
A deed in lieu allows the homeowner to voluntarily hand the title back to the lender.
Benefits
- Stops foreclosure
- Faster than a short sale
- Less damage to credit
- Some banks offer relocation assistance
Downsides
- You lose the home
- The bank must approve
- It may still show as a negative mark on credit
This option is good for homeowners with no equity, major damages, or no desire to go through the selling process.
7. Traditional Sale (If You Have Equity)
Many homeowners are surprised to learn they may have more equity than they think.
In California, home values jumped over 38% between 2020 and 2023, which means even families who were once underwater may now sell normally.
When It Works
- You’re not too far behind
- The home is in decent condition
- You have enough equity to cover agent fees and closing costs
A traditional sale takes 30–60 days—not as fast as a cash sale, but faster than a short sale.
8. Bankruptcy (Chapter 13)
This is a last-resort option—but it can stop foreclosure instantly.
For an overview of how Chapter 13 works, see this official U.S. Courts guide to Chapter 13 bankruptcy.
What It Does
- Stops creditor action
- Allows repayment of arrears over 3–5 years
- Lets some homeowners keep their home
When It’s Useful
- You need immediate protection
- You want to keep the property
- You have income but cannot catch up quickly
This shouldn’t be taken lightly and requires legal advice.
Which Option Is Fastest? Here’s the Breakdown
| Option | Speed | Good For | Keeps Home? |
|---|---|---|---|
| Cash Sale | 7–14 days | Behind on payments, repairs, urgent timeline | ❌ |
| Loan Modification | 30–90 days | Wanting to keep home | ✔️ |
| Forbearance | 7–14 days | Temporary relief | ✔️ |
| Repayment Plan | 30 days | Minor arrears | ✔️ |
| Reinstatement | Immediate | Funds available to catch up | ✔️ |
| Deed in Lieu | 30 days | No equity | ❌ |
| Traditional Sale | 30–60 days | Some equity, decent condition | ❌ |
| Bankruptcy | Immediate | Stop foreclosure | ✔️ |
How to Choose the Right Short Sale Alternative
Short sales are sometimes the right move—but often not the fastest or easiest.
Here’s how to decide:
Choose a Cash Sale if You:
- Need relief fast
- Don’t want repairs or showings
- Are facing auction date pressure
- Have extensive property damage
Choose a Mortgage Assistance Program if You:
- Want to stay in the home
- Can afford modified payments
- Have a documented hardship
Choose a Deed in Lieu if You:
- Want to walk away cleanly
- Have no equity
- Want a faster process than foreclosure
How Mrs. Property Solutions Helps
Now speaking from our perspective:
If you’re overwhelmed by payments or unsure which path is best, Mrs. Property Solutions helps homeowners explore every available option—not just selling to us. Sometimes the best move is a modification, repayment plan, or selling traditionally, and we’ll tell you that.
But if a fast as-is sale is the right fit, we can typically:
- Close in as little as 7 days
- Cover all costs
- Buy the home as-is, even with liens, code issues, or damage
- Work with bank timelines to postpone a sale date
- Help relieve you from the debt quickly
We’ve helped hundreds of families in foreclosure avoid stress and move on peacefully.