What happens if I don’t make my mortgage payments?

If you are unable to make your mortgage payments in California, you will likely face foreclosure. Foreclosure is when your lender or loan servicer takes possession of your home and sells it in order to recover the remaining debt. This process can take months or even years. In California, the foreclosure process is initiated by the lender sending you a Notice of Default. This document informs you that you are in default of your loan and notifies you of the consequences. You have the right to respond to the Notice of Default and can ask your lender for more time or come to a loan modification agreement. Once the foreclosure process has started, you have the opportunity to reinstate the loan. This means that you pay the missed payments as well as all associated fees and costs to stop the foreclosure proceedings. If you are unable to pay the missed payments and fees, the lender will proceed with foreclosure. Depending on the type of loan, the foreclosure process may be judicial or non-judicial. In judicial foreclosure, the lender must go through the court system in order to foreclose on your home. If it is a non-judicial foreclosure, the lender can proceed without court involvement. In both cases, the lender will sell the property at a foreclosure auction in order to recover the remaining debt. However, if they cannot recover the money they are owed, you may be responsible for any remaining debt after the foreclosure auction.

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What happens if I don’t make my mortgage payments?

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