What to do when you are facing foreclosure in California
If you are behind on your mortgage, you may feel scared, embarrassed, or frozen. Those feelings are normal, and you are not alone. The most important thing to know is that in California, foreclosure usually takes months, and there are often steps you can take along the way.
Step 1: Take a breath and open your mail
Many homeowners stop opening letters from their lender because it feels overwhelming. Unfortunately, those letters often contain deadlines and options. Gather every letter from your servicer, the trustee, or the county in one folder. Look for words like "Notice of Default" or "Notice of Trustee Sale," and write down any dates you see.
If you are not sure what a letter means, our Where am I? timeline tool explains each stage in plain language.
Step 2: Call your servicer and write things down
Your servicer is the company you send payments to. Call and ask: How far behind am I? Has a Notice of Default been recorded? Is a sale date scheduled? What options are available to me? Ask for the name of your single point of contact, and keep notes of every call with the date, time, and name of the person you spoke with.
California's Homeowner Bill of Rights gives many borrowers certain protections, such as limits on "dual tracking" while a complete loan modification application is under review. Rules depend on your situation, so ask questions and keep copies of everything you send.
Step 3: Get free, trusted help
HUD-approved housing counselors are free or low-cost, and many speak Spanish. They can look at your budget and help you talk with your servicer. Visit our free help page for counselors and legal aid organizations across Southern California.
Step 4: Learn all of your options
Depending on your situation, options may include a loan modification, forbearance, a repayment plan, reinstatement, selling with equity, a short sale, or other paths. Each has pros and cons. Our options page compares them side by side. No single option is right for everyone, and no one can guarantee a particular result.
If you have equity in your home, protecting it is often an important part of the conversation. Selling on your own terms, before a sale date, can sometimes preserve money that would otherwise be lost.
Step 5: Watch out for scams
People in foreclosure are often targeted by scammers. Never sign over your deed to someone who promises to save your home, and never send mortgage payments to anyone other than your servicer.
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No upfront fees
In California, it is illegal for anyone to collect a fee for loan modification or other mortgage relief services before the work is fully done (Civil Code section 2944.7). If someone asks you to pay first, walk away and talk to a free HUD-approved counselor.
Talk to an Equity Guard Agent
If you would like someone to listen and help you think through your situation, an Equity Guard Agent is happy to talk, free and with no pressure. We cannot promise any outcome, and we will always point you to free counselors and attorneys when that is the right next step.
Informational only, not legal advice. This article is general information about California foreclosure and is not legal, tax, or financial advice. Laws and programs change, and every situation is different. Please confirm details with your servicer, a HUD-approved housing counselor, or a licensed attorney.