What Happens If You Stop Paying Your Mortgage in California?
If you’ve missed mortgage payments or are considering stopping, you need to know exactly what happens next—and your options to avoid foreclosure. In California, lenders can begin foreclosure after just 90 days of missed payments, but you have ways to protect yourself, including selling the home quickly.
Here’s what to expect and how to take control of the situation.
The California Mortgage Default Timeline
Missed Payment (Day 1-30)
- Lender sends a late notice (usually after 15 days)
- Late fees (typically 4-5% of the payment) are added
- Credit score drops by 60-100 points
30-90 Days Delinquent
- Lender’s collections department starts calling
- Default is reported to credit bureaus
- You may receive a Demand Letter (formal notice of default)
90+ Days Delinquent – Pre-Foreclosure Begins
- Lender files a Notice of Default (NOD) (public record)
- You have 90 days to reinstate the loan (pay past due + fees)
- Short sale or cash sale becomes urgent
After 90 Days – Notice of Trustee Sale
- Lender schedules an auction (as early as 21 days later)
- Home is sold to the highest bidder (often the bank)
- Eviction may follow within weeks
Your 5 Options If You Can’t Pay
Reinstate the Loan
- Pay all missed payments + fees before the auction
- Requires significant cash (often $10,000+)
Loan Modification
- Lender may adjust terms (lower rate, extended term)
- Approval isn’t guaranteed; takes 3-6 months
Short Sale
- Sell for less than owed (with lender approval)
- Still damages credit, but less than foreclosure
Deed in Lieu of Foreclosure
- Voluntarily transfer ownership to the lender
- Must prove financial hardship
Sell Fast to a Cash Buyer
- Avoid foreclosure entirely
- Close in 7-14 days
- No bank approval needed
Why Selling to a Cash Buyer Can Stop Foreclosure
If you’re already in default, a fast sale to a company like Semi Homes can:
✅ Stop foreclosure immediately – Sale pays off the mortgage
✅ Avoid credit damage – No foreclosure on your record
✅ Skip repairs/showings – We buy as-is
✅ No bank red tape – Close without lender delays
How It Works:
- We make a same-day cash offer
- You choose a closing date (even if auction is scheduled)
- Sale pays off your mortgage (and any liens)
- You walk away with no further obligations
Find What It's Like Working with Semi Homes
Frequently Asked Questions
How long can I stay in my home if I stop paying?
In California, you may have 6-12 months from the first missed payment until eviction, but the foreclosure stays on your credit for 7 years.
Will the bank work with me if I’m behind?
Some lenders offer forbearance or modifications, but approval isn’t guaranteed. Selling may be faster and more reliable.
Can I sell if I owe more than the house is worth?
Yes. In a short sale, the bank accepts less than owed. Or, a cash buyer can negotiate with the lender on your behalf.
What’s the difference between foreclosure and a short sale?
- Foreclosure = Bank takes the home, damages credit severely
- Short sale = You sell (with bank approval), credit takes a smaller hit
How fast can Semi Homes close if foreclosure is pending?
We’ve closed in as little as 7 days—even with an auction scheduled.
Need to Stop Foreclosure Fast?
If you’re behind on payments and want to avoid foreclosure, Semi Homes can help. We:
- Make no-obligation cash offers within 24 hours
- Buy homes in any condition (no repairs needed)
- Handle all paperwork, including lender coordination
- Close on your timeline