Act Now: First Things to Do When You Learn of a Foreclosure
If you’ve received a Notice of Default, Notice of Trustee Sale, or are behind on mortgage payments, time is critical. Do not ignore letters or calls from your lender — early action preserves the most options. This short checklist will help you stabilize the situation immediately.
- Call your mortgage servicer immediately. Ask for the loss-mitigation or foreclosure-prevention department and request all available options in writing (forbearance, repayment plan, loan modification, short sale, deed-in-lieu). Keep a log of names, dates, and call details.
- Contact free local counseling and legal help: Los Angeles County offers free foreclosure prevention counseling and help submitting paperwork — call LA County DCBA’s foreclosure unit or email the program listed on their site.
- Get a HUD-approved housing counselor. HUD-certified counselors can review documents, help apply for loan mods, and guide you away from scams. The State and HUD both recommend counseling before paying third parties.
- Assemble your documents. Collect your mortgage statement, Notice of Default, income proof, tax returns (2 years), recent paystubs, bank statements, hardship letter, and ID — servicers usually request these for loss-mitigation applications.
- Beware of scams. Do not pay upfront fees to “guarantee” a loan modification; California law prohibits charging fees before services and requires foreclosure consultants to register. If in doubt, verify registration and ask for references.
Why speed matters: Many foreclosure-prevention options are more available before a trustee sale is scheduled; after the Notice of Trustee Sale, stopping a sale often requires paying the full loan balance or using bankruptcy protection.
Legal Options That Can Pause or Prevent a Foreclosure
There are several legal and administrative paths to stop or delay foreclosure. Which one is best depends on your goals (keep the home vs. exit with the least harm), your finances, and how far the foreclosure has progressed.
1. Loss-mitigation with your lender (loan modification, forbearance, repayment plan)
Ask your servicer about loss-mitigation programs immediately. California law requires servicers to provide a single point of contact for loan-modification applicants and to explain options; this can make the application process more navigable. Apply for a loan modification and complete the servicer’s paperwork quickly — missing a requested document can lead to denial.
2. Reinstatement or curing the default
If you can pay the past due amount plus allowed fees, you may be able to reinstate the loan and stop foreclosure. In many cases under California procedure you can reinstate up to 5 days before the trustee sale; verify deadlines on any recorded Notice of Trustee Sale.
3. Short sale or deed in lieu
If keeping the home isn’t feasible, negotiate a short sale (sell for less than mortgage balance with lender approval) or a deed in lieu (transfer title to lender). Both options can avoid a contested sale and sometimes reduce deficiency risk; consult a counselor or attorney before proceeding.
4. Bankruptcy — automatic stay and Chapter 13 plans
Filing bankruptcy creates an automatic stay that immediately halts most foreclosure activity while the case is pending. Chapter 7 usually gives only temporary relief; Chapter 13 can provide a multi-year repayment plan that cures arrears and can permanently stop a foreclosure if you keep plan payments current. Bankruptcy is a powerful tool but has costs and eligibility rules — talk to a bankruptcy attorney promptly if you consider this route.
5. Emergency court remedies (rare)
In special cases (procedural defects, servicer violations of the Homeowner Bill of Rights, or demonstrable errors in the foreclosure paperwork), an attorney can seek temporary injunctions or other judicial relief to delay a sale. These are fact-specific and require quick legal action.
A Practical Step-by-Step Checklist & Typical Timeline for Los Angeles Homeowners
Below is a practical roadmap you can follow. Timelines vary by loan type and servicer, but these are common stages in California non-judicial foreclosures and the actions you should take at each stage.
| Stage | Typical Timing | What You Can Do |
|---|---|---|
| Missed payments | Month 1–3 | Contact servicer, request loss mitigation, gather documents, get HUD counselor. Early fixes (catch up or forbearance) are easiest now. |
| Notice of Default (NOD) | Often ~90 days of delinquency | Submit full loan-mod application; you typically have a 90‑day period after NOD to cure or negotiate. Use LA County free counseling for application help. |
| Notice of Trustee Sale / Notice of Sale | Weeks to months after NOD | Reinstatement may still be possible up to a few days before sale in some cases, but options narrow. If needed, consult bankruptcy counsel about an automatic stay. |
| Trustee Sale / Auction | Sale date set in Notice of Sale (public) | If sale occurs, new owner must follow eviction procedures; you may have short time to vacate or pursue surplus funds claims. Discuss post-sale remedies with an attorney. |
Local resources & programs: Los Angeles County’s DCBA foreclosure unit provides one-on-one counseling and mediation referrals; county-level mortgage relief funds and nonprofit partners (for example, Neighborhood Housing Services network) may have limited emergency assistance — check eligibility and application deadlines.
Quick contact list to save:
- LA County DCBA Foreclosure Prevention: call the number on the DCBA page for counseling and filings.
- HUD foreclosure avoidance counseling search: available online or by HUD phone.
- California Attorney General homeowner rights / HBOR information: refer for servicer-rights and complaint steps.
Final note: Each case is fact-specific. Use free counseling to prepare strong applications, document every contact with your servicer, and consult an experienced Los Angeles foreclosure or bankruptcy attorney if you face a sale date or complicated legal questions.