Behind on payments
Before you call the bank, call Joe.
The lender has a team looking out for its bottom line. You need someone looking out for yours.
A consumer advocate
The worst thing you can do is go quiet.
When you fall behind, the natural thing is to isolate yourself and put it away. But the lender has a fleet of attorneys and employees working to collect what is due.
As a consumer advocate, Joe and his team communicate with the lender and its attorneys on your behalf. At worst, that buys you time. In many cases it leads to a remedy. And where it can't, Joe works with attorneys and CPAs who do this every day and can give you options.
California · in calendar days
How much time do you actually have?
Joe's rule of thumb for California, from the day you first become delinquent. Every case is different, so treat these as approximate.
- Day 90 to 120
Notice of Default
Once you are three or four payments behind, the lender can record a Notice of Default. You are now in pre-foreclosure. It does not mean you lose the house tomorrow. It is a warning.
- About day 180
Notice of Sale
Roughly 90 days after the Notice of Default, the lender can post a Notice of Sale. This is no longer a warning. It is a plan of action, with an auction date.
- About day 210
Auction
In Joe's experience the sale lands about 30 days after the Notice of Sale. California requires at least 20 days' notice.
Your options
There is usually more than one way out.
Loan modification
Restructure the loan and keep the home.
Short sale
When you owe more than the home is worth, sell with the lender's approval and limit the damage.
Strategic sale
List or sell off market before the auction, and keep the equity that is left.
Bankruptcy and lien strips
With Joe's legal partners, sell through bankruptcy while protecting equity, or clear liens to make the property marketable.
Notice of default is a warning. Notice of sale is a plan of action.
Go deeper
What is a Notice of Default in California?
A Notice of Default (NOD) is the lender's formal, recorded warning that you have broken your mortgage contract.
Read the answerGuideHow long does foreclosure take in California?
As a rule of thumb, about 210 days from your first missed payment.
Read the answerGuideCalifornia AB 2424, explained.
AB 2424 lets a California homeowner postpone a scheduled foreclosure sale in two steps.
Read the answerGuideBehind on your mortgage? Do this first.
Don't isolate yourself, and don't stop communicating with the lender.
Read the answerQuestions
What people ask Joe.
What does it mean to be in default on my mortgage?
You have broken your contract with the lender. It doesn't mean one missed payment. Default usually means you are three or four payments behind, 90 to 120 days late, and the lender now has the legal right to record a Notice of Default. You are in pre-foreclosure. It doesn't mean you will lose your home tomorrow, but it is a big red warning.
What is the difference between a Notice of Default and a Notice of Sale?
Think of them as chapter one and chapter two of foreclosure. A Notice of Default is a warning. A Notice of Sale is a plan of action: it sets an auction date for your home.
How long do I have before foreclosure in California?
As a rule of thumb, about 210 days from when you first become delinquent: roughly 90 days to a Notice of Default, about 90 more to a Notice of Sale, then the auction. California requires at least 20 days between the Notice of Sale and the sale. Your dates may differ, so act early.
Can AB 2424 stop my foreclosure sale?
It can postpone it. In California, giving the trustee a valid listing agreement at least five business days before the sale requires a postponement of at least 45 days, and a signed purchase agreement adds a further 45 days to close. It applies to residential property of up to four units. This is general information, not legal advice.
What can a consumer advocate do that I can't?
Communicate with the lender and its attorneys on your behalf, and bring in attorneys and CPAs who handle these cases every day. At worst it buys you time. In many cases it leads to a solution that saves the home.
Time is on your side only if you use it.
Call Joe today. The conversation costs nothing.