County of Los Angeles - Department of Consumer Affairs

Your lender uses your home as security for your mortgage payments. This means that if you do not make the payments, the lender can take your home. The process the lender uses to take your home is called Foreclosure.

If you are behind on your payments, it is important that you act quickly to prevent foreclosure.

What should I do if I am behind on my house payment?

Call your lender - Most lenders do not want you to lose your home.  Tell them why you're behind on your payments and ask them to work with you to get your payments current.

Don 't ignore letters from your lender - Let them know you've received their letters and that you want to work with them.

How your lender can help

Your lender may accept a payment plan for the back payments or give you extra time to pay the loan.

What if my lender won’t help?

You still have options:

• Call another lender - Ask if they will give you a new loan to pay off your existing mortgage.
• Sell your home - You might get enough money from the sale of your home to pay the loan off and even have money left over.
• Talk to a lawyer – Ask if filing for bankruptcy can help you keep your home. You can find a lawyer by calling the Los Angeles County Bar Association at (213) 243-1525.

The foreclosure process

Foreclosure begins when you get a Notice of Default in the mail from the County Registrar-Recorder’s Office. The Notice of Default tells you that you have not made your payments; It also tells you the amount you owe in missed payments and foreclosure fees.

You have 3 months from the date the Notice of Default is recorded to pay the back payments and fees. You can find the date the notice was recorded on the first page next to the words “recorded on.” If you pay the amount on the Notice of Default, the lender cannot sell your home.

When can they sell my home?

If you don’t pay the amount owed within 3 months, your lender can sell your home. However, before the home is sold, your lender must mail you a Notice of Sale. The Notice of Sale will include the date, time, and place your home is to be sold. The notice of sale must be mailed to you at least 20 days before the day the lender plans to sell your home.

How do I stop the sale of my home?

You can pay the amount due, including fees, up to 15 days before the sale date. If you wait until the last 5 days before the sale, you will have to pay the entire loan amount. Once you pay, the lender must record a Notice of Rescission. This proves that that the sale has been canceled.

Watch out for scams!

Avoid people who promise to stop the foreclosure by having you transfer title of your property. Transferring ownership does not stop the foreclosure. You will still be responsible for the money you owe, even if you no longer own the home. Also, it will not keep the foreclosure from showing up on your credit report.