Behind on Mortgage Payments? Here’s Exactly What to Do in California
Missing mortgage payments doesn’t have to mean losing your home. In California, you have options – whether you want to catch up, modify your loan, or sell quickly to avoid foreclosure. Here’s your step-by-step guide to taking control.
First Steps When You Fall Behind
Contact Your Lender Immediately
- Lenders offer more help before you’re 90+ days late
- Ask about:
- Forbearance (temporary pause)
- Repayment plans
- Loan modification
Understand Your Timeline
- 30 days late: Late fees apply (4-5% of payment)
- 90 days late: Notice of Default filed (pre-foreclosure starts)
- 180+ days late: Auction scheduled
Prioritize Your Options
| Option | Best For | Speed | Credit Impact |
|---|---|---|---|
| Reinstatement | Those who can catch up | Immediate | Minimal |
| Loan Modification | Long-term affordability | 2-4 months | Moderate |
| Short Sale | Little/no equity | 3-6 months | Significant |
| Cash Sale | Need speed, avoid foreclosure | 7-14 days | Minimal |
5 Ways to Get Back on Track
Reinstatement
- Pay past-due amount + fees
- Requires lump sum (typically 3-6 months of payments)
- Stops foreclosure if done before auction
Forbearance Agreement
- Temporarily reduces or pauses payments
- Common with job loss/medical issues
- Must repay paused amounts later
Loan Modification
- Permanent change to loan terms
- May lower rate or extend term
- Requires financial documentation
Refinance
- Only works if you’ve regained financial stability
- Challenging with recent late payments
Sell the Property
- Traditional sale: 30-90 days (if you have time)
- Cash sale: 7-14 days (best for urgent cases)
Why Selling Might Be Your Best Option
If you:
- Can’t afford reinstatement
- Don’t qualify for modification
- Need to relocate
- Want to avoid foreclosure
Find What It's Like Working with Semi Homes
How to Decide What’s Right For You
If You Want to Keep the Home:
- Apply for modification/forbearance
- Seek housing counseling (HUD-approved)
- Consider renting out rooms
If You Need to Sell:
- Get a professional valuation
- Compare cash offers vs. traditional sale
- Choose fastest option that meets your needs
Frequently Asked Questions
How many payments can I miss before foreclosure?
In California, lenders typically file Notice of Default after 3 missed payments (90 days).
Will one late payment ruin my credit?
A single 30-day late payment may drop your score 60-100 points, but multiple lates cause more damage.
Can I stop foreclosure once it starts?
Yes, until the auction occurs. Selling the home is the most reliable way to stop it.
What if I’m already in foreclosure?
You still have options:
- Last-minute reinstatement
- Bankruptcy (temporary stop)
- Emergency cash sale
How fast can I sell to avoid foreclosure?
Cash buyers like Semi Homes can close in 7-14 days, even with an auction date scheduled.
Take Action Today
At Semi Homes, we help California homeowners:
- Get same-day cash offers
- Stop foreclosure in its tracks
- Sell quickly without repairs
- Move on with cash in hand
Don’t wait until the bank takes action – explore your options now. Contact us for a no-pressure consultation and see how much you can sell for before it’s too late.