If you've missed a mortgage payment — or several — I want you to know something first: you are not alone, and you are not out of options. In my work helping homeowners across Los Angeles County, Orange County, the Inland Empire, and beyond, I've sat across the table from people who felt completely stuck. Good people who hit a hard stretch — a job loss, a divorce, a medical crisis, a death in the family — and suddenly found themselves in a situation they never imagined.
California's foreclosure process moves quickly once it gets started, but there's usually more runway than people realize. The worst thing you can do right now is nothing. So let's talk through what's actually available to you.
First, Understand Where You Stand in the Process
Missing one payment is stressful, but it's not foreclosure. In California, the formal process typically doesn't begin until you're significantly behind — usually 90 days or more. After that, your lender can record a Notice of Default (NOD) with the county. Once that happens, you have 90 days to bring the loan current or explore alternatives before a Notice of Trustee Sale is issued.
From the Notice of Trustee Sale, the actual auction is typically scheduled at least 21 days out.
That timeline matters. It means that even homeowners who feel like they're "almost out of time" often still have real choices on the table — especially in high-value markets like Glendale, Pasadena, Whittier, or Montebello, where equity has built significantly over the past several years.
Option 1: Loan Modification
If you want to stay in your home, a loan modification should be your first call to your servicer. This is a formal change to the terms of your existing loan — it might lower your interest rate, extend your loan term, or roll missed payments into the back end of the loan.
Lenders aren't always easy to deal with, and the paperwork can feel overwhelming. But many servicers have hardship departments specifically designed to help. You can also reach out to a HUD-approved housing counselor for free guidance — I always recommend this as a starting point because it costs you nothing.
Option 2: Forbearance Agreement
A forbearance is a temporary pause or reduction in your mortgage payments, agreed upon by your lender. This is typically designed for short-term hardship — if you know you'll be back on your feet within a few months, this might be a bridge that buys you the time you need.
Be sure to get any forbearance agreement in writing, and understand exactly what happens at the end of the forbearance period. Will the missed payments be due all at once? Rolled into the loan? These details matter.
Option 3: Refinancing
If you have equity in your home and your credit hasn't taken too much damage yet, refinancing into a new loan with better terms may be an option worth exploring. A mortgage professional can walk you through whether this is realistic based on your current financial picture.
This is often overlooked in distress situations, but in neighborhoods like Downey, Norwalk, or Alhambra — where values have held strong — homeowners sometimes have more options than they think.
Option 4: Selling the Home
Sometimes keeping the home isn't the goal — getting out of a painful situation with your credit and finances as intact as possible is. If you have equity in the property, a traditional sale may allow you to pay off what you owe, walk away with proceeds, and start fresh.
Even if you're already in pre-foreclosure, a sale is very much possible. I've helped homeowners in Compton, East Los Angeles, San Bernardino, and across Southern California sell before the auction date — and walk away in a much better position than if they had waited.
Time is the key factor here. The earlier we get the home on the market, the more options you have.
Option 5: Short Sale
If you owe more on your home than it's currently worth — or if you don't have enough equity to cover what you owe and closing costs — a short sale may be the right path. In a short sale, your lender agrees to accept less than the full amount owed on the mortgage as payment in full.
This is one of my areas of certification, and I want to be honest with you: short sales are not simple. They require lender approval, careful documentation, and a real estate professional who understands the process from start to finish. But when done correctly, a short sale can be a far better outcome than a full foreclosure — for your credit, your finances, and your peace of mind.
California also has specific laws — including protections under the Homeowner Bill of Rights — that may apply to your situation. I always recommend consulting with a real estate attorney to understand your rights before making any decisions.
Option 6: Deed in Lieu of Foreclosure
A deed in lieu is when you voluntarily transfer ownership of your home to the lender in exchange for being released from the mortgage obligation. It avoids the formal foreclosure process and can sometimes be negotiated with relocation assistance.
Not all lenders offer this, and there are eligibility requirements. But it's worth asking about if other options have been exhausted.
What You Should Avoid
There are people out there who prey on homeowners in distress. If someone approaches you promising to "stop foreclosure" with no clear explanation of how — or asks you to sign over your deed before anything is settled — please be cautious. Foreclosure rescue scams are real, and they can make an already difficult situation much worse.
The Sooner You Act, the More Options You Have
I know reaching out for help can feel uncomfortable. There's a lot of emotion tied up in a home — memories, pride, family history. But I've never once judged a homeowner for struggling. What I've seen, time and again, is that the people who reach out early have far more choices available to them than those who wait until the last possible moment.
Whether you're just starting to fall behind on payments in the San Fernando Valley, already received a Notice of Default in Riverside County, or facing a sale date in Ventura County — let's talk before you make any decisions. I'll give you a clear, honest picture of what your home is worth today, what your options look like, and what I would do if I were in your position.
I'm Suzanna Saharyan, a Realtor with CENTURY 21 Realty Masters and a certified Short Sales & Foreclosure specialist. I work with homeowners throughout LA County, Orange County, Riverside, San Bernardino, and Ventura County.
📞 Call or text me directly at 323-472-7059 🌐 Or visit homenest.house to learn more and reach out anytime.
There's no pressure, no judgment — just real information so you can make the best decision for your family.
