LA County Information

County of Los Angeles
Department of Consumer Affairs
Information Sheet

 DCA
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SAVING YOUR HOME

What to do when facing foreclosure

Updated June 15, 2009

The collapse of the housing market means many homeowners in Los Angeles County are stuck with mortgages they can no longer afford. If you bought a home in the last few years, chances are you have a nontraditional mortgage with an exotic name like adjustable-rate, pick-a-payment, negative-amortized or interest-only. And you, like thousands of others, might be facing a financial crisis.

If your mortgage payments are going up, your loan is more than your home is worth, or you are facing foreclosure, you have options to help save your home.

Lenders and lawmakers are taking new steps every day to avoid foreclosures and deal with this crisis. Call us at (800) 973-3370 for up-to-date information.

California moratorium on foreclosures

Starting June 15, 2009, a new California law went into effect which put a 90-day moratorium on foreclosures.

Loan companies cannot foreclose a mortgage without either renegotiating the loan or giving you 90 days notice.

However, this moratorium does not apply in all cases. Contact your lender or call DCA for more information.

Lenders must reach out to you

In California, lenders now must call you on the phone or try to reach you in person before they can file a Notice of Default. Once they reach you, they must offer to set up a meeting with you within 14 days to discuss your financial situation.

If your lender does not reach you by telephone or in person, they must send you a letter, then more phone calls, then a certified letter.

The lender does not have to contact you if you surrender the property, file bankruptcy, or hire an advisor who helps people extend the foreclosure.

Lenders setting up programs

Many lenders are starting special programs to help homeowners who are behind on payments or in danger of falling behind. Look for a letter from your lender or call them to work out a plan.

Click here for a list of lenders.

Contact DCA’s Real Estate Fraud and Information Division at (800) 973-3370 for more details.

Talk to your lender

If you’re behind on payments, don’t wait for your lender to call. Call your lender now and work something out. When you talk to your lender:

  • Ask about their new programs.
  • Ask them to lower your payments or the interest rate
  • Ask for more time to make up past due payments.

If you are having trouble making payments, contact a HUD-approved counseling agency at (888) 995-4673.

Making Home Affordable

A new government-backed program called Making Home Affordable aims to help millions of homeowners get better mortgages and stay in their homes.

The Homeowner and Affordability and Stability Plan went into effect on March 4, 2009.

There are two main parts of the plan:

  • Refinancing for responsible homeowners
  • Loan modifications for at-risk homeowners

You can also get more information about the program and other U.S. government programs at FinancialStability.gov.

Contact us for more information or speak with one of our counselors at (800) 973-3370.  If you live outside of Southern California, call us at (213) 974-1450.

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For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within LA County)
web site: dca.lacounty.gov

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