Educational information, not personalized financial, tax, or legal advice. Numerical scenarios and market figures are illustrations unless a dated source is identified; they are not verified results or current quotes. Rates, costs, eligibility, and timelines must be confirmed for your property.
A Notice of Default requires prompt attention, but refinancing is not the only possible response. Contact your mortgage servicer about assistance, consult a HUD-approved housing counselor, and seek legal advice about the actual notices and deadlines. A private-money refinance may be an option when equity, eligibility, costs, and timing support it; approval and prevention of a sale are not guaranteed.
Evaluating a Possible Refinance
A proposed refinance is not itself a postponement or cancellation of a trustee's sale. Funding, payoff arrangements, and confirmation with the servicer or trustee must occur in time. Do not stop responding to notices or rely on a conditional term sheet as proof that a sale has been stopped.
A lender reviews equity, title, borrower qualifications, loan purpose, and a credible repayment plan. Available leverage and pricing are specific to the file. Compare total costs and risks with servicer assistance, a sale, or other options discussed with qualified advisers.
The Exit Strategy
Bailout loans are short-term bridges, usually 12 to 24 months. The borrower must have a clear exit strategy. This typically involves using the time bought by the bailout loan to either sell the property at market value (preserving their equity rather than losing it at auction) or to improve their financial situation to qualify for a conventional refinance later.
A refinance may provide time to pursue a repayment plan, but it adds costs and can put remaining equity at risk if repayment fails. Compare alternatives promptly and obtain case-specific advice; no website summary or proposed financing guarantees that foreclosure will stop.
Whether credit is primarily business-purpose is a case-specific determination. Owner occupancy and use of funds matter; an investment-related label alone does not establish an exemption. CFPB: Regulation Z business-purpose credit rules
Contact your servicer promptly about repayment, modification, or other assistance options. Foreclosure protections and deadlines depend on the case, and no third party can guarantee a loan modification or that foreclosure will stop. California Attorney General: homeowner rights and foreclosure assistance
Yes, some lenders — including Fidelity Funding — offer owner-occupied foreclosure bailout loans. Consumer-purpose loans on a primary residence carry additional federal disclosure requirements, so start the conversation early in the foreclosure timeline.
Fidelity Funding Corp · Direct California private money lender since 2006
450 N Brand Blvd, 6th Floor · Glendale, CA 91203 · Mon-Fri 8AM-6PM PT