Behind on Mortgage Payments in California? What to Know Before a Notice of Default or Foreclosure
Missing a mortgage payment can be stressful. Missing two, three, or four payments can make it feel as though you are running out of options.
But being 30, 60, 90, or even 120+ days behind on your mortgage does not automatically mean you have lost your home.
If you own a home in Lake Elsinore, Menifee, Murrieta, Temecula, Wildomar, Corona, or elsewhere in Riverside County and are experiencing financial hardship, one of the most important things you can do is understand where you are in the process and begin evaluating your options early.
Federal mortgage-servicing rules generally prevent a servicer from making the first notice or filing required for foreclosure until a borrower is more than 120 days delinquent, although exceptions may apply. California also has additional foreclosure procedures and homeowner protections.
Important: Legacy Homes Realty provides real estate information and representation. We are not attorneys, CPAs, financial advisors, lenders, bankruptcy professionals, or foreclosure counselors. This page provides general educational information and should not be considered legal, tax, financial, lending, or foreclosure advice.
What Happens When You Miss Mortgage Payments?
Every mortgage, loan servicer, and homeowner situation can be different. The 30-, 60-, 90-, and 120-day points below are best understood as delinquency milestones, not guaranteed foreclosure dates.
About 30 Days Behind on Your Mortgage
One missed payment can lead to late fees and communication from your mortgage servicer.
This is a good time to contact your servicer rather than avoiding calls or letters. Ask what hardship or loss-mitigation options may be available for your particular loan.
If your financial hardship appears temporary, your servicer may have programs such as a repayment arrangement, forbearance, or loan modification depending on your circumstances, loan type, and available programs.
About 60 Days Behind on Your Mortgage
At two missed payments, the delinquent amount is growing and catching up may become more difficult.
Start organizing your mortgage statements, income information, property documents, and correspondence from your servicer. Keep copies of important letters and document your conversations.
If you are considering selling rather than keeping the property, this is also an appropriate time to determine what the home may realistically be worth in the current market.
Helpful Tip: Do not assume you have no equity simply because you are behind on mortgage payments. Mortgage delinquency and home equity are two different things. Start by requesting a personalized home value analysis so you can better understand what your property may be worth.
About 90 Days Behind on Your Mortgage
Three missed payments can become an important decision point for homeowners experiencing financial hardship.
If keeping your home is your priority, stay in communication with the mortgage servicer and respond promptly to requests for loss-mitigation documents.
If keeping the mortgage payment is no longer financially realistic, you may also want to determine whether a traditional home sale could provide another path forward.
The earlier you understand your estimated market value, mortgage payoff, possible liens, and estimated selling expenses, the more information you have when comparing your real estate options.
120+ Days Behind on Your Mortgage
For many mortgages covered by federal servicing rules, a servicer generally cannot make the first notice or filing required for foreclosure until the loan is more than 120 days delinquent. Limited exceptions can apply.
Being 120 days behind does not mean your home is automatically sold on day 120 or day 121.
It does mean the situation may be entering a more time-sensitive stage and should not be ignored.
If you have received official foreclosure documents, carefully review the dates and contact your mortgage servicer. You may also want to speak with a HUD-approved housing counselor and an appropriate California attorney if you need advice regarding your legal rights.
You can also read our detailed Southern California foreclosure prevention and homeowner options guide for additional information.
What Is a Notice of Default in California?
A Notice of Default, commonly called an NOD, is a recorded document that can begin the formal nonjudicial foreclosure process in California.
A Notice of Default is serious, but receiving one does not mean a trustee sale has already happened.
Receiving an NOD does not automatically mean:
- Your home has already been sold.
- You must immediately move out of the property.
- You can no longer communicate with your mortgage servicer.
- You automatically have to sell your home.
- You have lost the ability to investigate your real estate options.
What it does mean is that deadlines and timing have become increasingly important.
Helpful Tip: Keep every letter, email, mortgage statement, Notice of Default, Notice of Trustee Sale, and other document you receive. Write down important dates and keep records of conversations with your mortgage servicer.
Can You Sell a Home After Receiving a Notice of Default?
In many situations, yes.
A Notice of Default does not automatically prevent a homeowner from putting the property on the market. However, timing becomes increasingly important as the foreclosure process progresses.
One of the first real estate questions to answer is whether the property has enough equity for a traditional sale.
A real estate professional can help you begin estimating:
Estimated Market Value − Mortgage Payoff − Liens − Estimated Selling Expenses = Estimated Net Proceeds
This is only an estimate. Actual payoff demands, title information, liens, taxes, escrow figures, and other transaction costs must be determined as part of the sale.
If the home has sufficient equity, a traditional open-market sale may allow the mortgage and other amounts required through escrow to be satisfied, with remaining net proceeds distributed according to the closing.
If you are unsure where to start, request a confidential home value analysis before making assumptions about your equity.
What If You Owe More Than Your Home Is Worth?
If the total amount required to satisfy your mortgage and other liens is greater than what the property can reasonably sell for, a short sale may be one option worth investigating.
A short sale generally requires lender approval because the lender is being asked to approve a sale when the proceeds may not be sufficient to pay the entire mortgage balance.
Short sale approval is not automatic. Every homeowner, lender, mortgage, lien, hardship, and property can be different.
Learn more about what a short sale is and how the short sale process works.
Because a short sale can involve legal, tax, credit, lending, and financial considerations, homeowners should speak with appropriate qualified professionals about those issues.
Should I Sell My Home or Try to Keep It?
There is no single answer that is right for every homeowner facing mortgage hardship.
A useful starting point is to separate the decision into two questions.
If You Want to Keep Your Home
Contact your mortgage servicer and ask what loss-mitigation programs may be available for your loan and circumstances.
Depending on the loan and homeowner situation, potential programs might include repayment arrangements, forbearance, or loan modification. Availability and eligibility are determined by the mortgage servicer or applicable program—not by your real estate agent.
If Keeping the Home Is No Longer Realistic
Find out what your property could reasonably sell for and approximately how much equity may be available.
Knowing your home’s estimated value does not obligate you to sell.
It simply gives you another piece of information to consider while evaluating your options.
Helpful Tip: Be cautious of anyone who guarantees they can stop foreclosure, tells you to stop communicating with your mortgage company, pressures you to sign documents immediately, or asks you to transfer ownership of your home before you fully understand the transaction.
Selling With Equity vs. Selling Without Enough Equity
If Your Home Has Equity
A traditional sale may be possible. The property’s market value, mortgage payoff, liens, estimated selling costs, and available time should all be reviewed before making a decision.
Start with a home value analysis rather than relying solely on an automated estimate.
If Your Home Does Not Have Enough Equity
A lender-approved short sale may be worth investigating. Because the lender must approve the transaction, homeowners considering this path should begin gathering information well before an approaching foreclosure deadline.
Read our short sale homeowner guide for additional information about how the process may work.
Why Acting Early Can Give Homeowners More Choices
The purpose of acting early is not to rush you into selling your property. It is to give you time to gather accurate information and understand the choices that may be available.
- Contact your mortgage servicer.
- Review every notice and deadline.
- Determine your approximate mortgage payoff.
- Check for additional liens or obligations involving the property.
- Determine the property’s realistic market value.
- Estimate whether you may have positive equity.
- Compare keeping the property with selling it.
- Seek legal, tax, lending, or housing-counseling advice when those issues are involved.
How Legacy Homes Realty Can Help With the Real Estate Side
Homeowners experiencing financial hardship often receive information from many different sources. Our role is specific: we help you understand the real estate side of your situation.
That can include reviewing local market conditions, estimating the property’s current market value, discussing traditional-sale possibilities, explaining the real estate short-sale process when appropriate, marketing the property, reviewing offers, and helping coordinate the real estate transaction.
Legacy Homes Realty brings 21+ years of combined Southern California real estate experience helping buyers and sellers navigate both straightforward and more complicated real estate transactions.
Learn more about Josephine and Raj Sharma and Legacy Homes Realty.
For homeowners who prefer discussing their real estate situation in another language, assistance is available in Hindi, Punjabi, Urdu, and Fiji Hindi.
Frequently Asked Questions About Missed Mortgage Payments and Notice of Default
1. I missed one mortgage payment. Am I in foreclosure?
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Generally, one missed mortgage payment means the loan is delinquent; it does not mean a foreclosure sale has already occurred. Contact your mortgage servicer promptly and ask about your account status and available options.
2. What happens when I am 60 days behind on my mortgage?
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At approximately two missed payments, your delinquent balance may continue growing and catching up can become more difficult. Contact your servicer, organize your documents, and consider determining your home’s current market value so you understand whether you have equity.
3. What happens when I am 90 days behind on my mortgage?
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Three missed payments can be an important time to evaluate your situation. Continue communicating with your servicer if you want to keep the home, while also considering whether you should determine the property’s market value and estimated equity.
4. Can foreclosure start when I am 90 days late?
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For mortgages covered by federal servicing rules, a servicer generally cannot make the first notice or filing required for foreclosure until the mortgage is more than 120 days delinquent. Exceptions may apply, so homeowners should confirm the status of their individual loan with their servicer.
5. What happens when I am 120 days behind on my mortgage?
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At this stage, the situation may become more time-sensitive and a loan may become eligible for the formal foreclosure process under applicable rules. It does not mean your property automatically goes to auction on day 120 or day 121.
6. Is a Notice of Default the same as losing my home?
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No. A Notice of Default is an important step in California’s foreclosure process, but it is not the same as a completed trustee sale. If you receive an NOD, pay close attention to deadlines and begin evaluating your available options promptly.
7. Can I sell my house after receiving a Notice of Default?
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Potentially, yes. A Notice of Default does not automatically prevent you from listing the property for sale. Whether a transaction can be completed depends on factors such as market value, mortgage payoff, liens, title issues, foreclosure deadlines, the buyer, and escrow timing.
8. What if I have equity but cannot afford my mortgage anymore?
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A traditional home sale may be worth evaluating. Start by determining a realistic market value and estimating what may remain after mortgages, liens, and selling expenses are paid. You can request a home value analysis from Legacy Homes Realty.
9. What if I owe more than my home is worth?
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A lender-approved short sale may be one potential real estate option. Because lender approval is required and every homeowner situation is different, learn about the process early and seek appropriate tax or legal advice when needed. Read more about short sales in California.
10. Should I wait until I receive a Notice of Default before contacting a Realtor?
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No. You do not have to wait until a Notice of Default is recorded. If selling might become necessary, learning your property’s estimated market value and possible equity earlier can give you more information and potentially more time. Speaking with a real estate professional does not obligate you to list or sell your home.
You Do Not Have to Make a Real Estate Decision From Fear
Financial hardship can happen because of job loss, reduced income, divorce, unexpected expenses, loss of a family member, increased housing costs, business difficulties, or many other life changes.
The goal should not be to pressure you into selling.
The goal is to help you understand the real estate portion of your situation so you can make an informed decision based on your home’s estimated value, equity, local market conditions, and available time.
For additional information, visit our complete guide to avoiding foreclosure in Southern California.
Confidential Home Value & Real Estate Options Review
If you are behind on your mortgage, have received a Notice of Default, or simply want to know whether selling may be an option, we can help you evaluate the real estate side of your situation without pressure.
Legacy Homes Realty
Josephine Sharma, Broker — CA DRE #01507253
Raj Sharma, Realtor® — CA DRE #01886334
21+ Years Combined Real Estate Experience
Serving homeowners throughout Lake Elsinore, Menifee, Murrieta, Temecula, Wildomar, Corona, and surrounding Riverside County communities.
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Important Disclaimer: Legacy Homes Realty, Josephine Sharma, and Raj Sharma are licensed California real estate professionals. We do not provide legal, tax, accounting, financial, lending, bankruptcy, credit-repair, or foreclosure-counseling advice. Foreclosure procedures, homeowner rights, loan-servicing requirements, and available options can depend on applicable law, loan type, mortgage servicer activity, and individual circumstances. Homeowners should contact their mortgage servicer and appropriate qualified legal, tax, financial, lending, or HUD-approved housing-counseling professionals when needed.
