The Foreclosure Process in Los Angeles County: A Complete Guide

by Shiv Patel

Foreclosure is a stressful and overwhelming process, but if you’re a homeowner in Los Angeles County, knowing what to expect can make all the difference. Whether you’re behind on payments or already received a foreclosure notice, this guide will break down everything you need to know—from the legal process to ways you can stop or avoid foreclosure altogether.

Understanding Foreclosure in Los Angeles County

California is primarily a non-judicial foreclosure state, meaning that most foreclosures happen without the lender taking you to court. Instead, your lender follows a trustee process, which moves relatively quickly. However, Los Angeles County’s real estate market and local laws offer some unique opportunities to prevent or delay foreclosure if you take action early.

The Step-by-Step Foreclosure Process in Los Angeles

1. Missed Payments & Lender Communication

Your mortgage contract has a grace period, but after 90 days of missed payments, your lender can officially start the foreclosure process. Before that happens, they are required to reach out and discuss potential loss mitigation options.

What You Should Do:

Contact your lender immediately and ask about repayment plans, loan modifications, or forbearance options.
Seek professional guidance from a HUD-approved housing counselor or foreclosure specialist.

2. Notice of Default (NOD)

If no resolution is reached, the lender will file a Notice of Default (NOD) with the county recorder’s office. This legally notifies you that you are in default on your loan.

The lender must also send you a copy of this notice by mail.
You have at least 90 days after the NOD is recorded to bring your loan current.

3. Notice of Trustee’s Sale (NOTS)

If you do not resolve the default, the lender can file a Notice of Trustee’s Sale (NOTS) after the 90-day period. This notice states that your property will be sold at a public auction in as little as 21 days.

The NOTS must be published in a local newspaper and posted on the property.
At this stage, you still have options to stop the foreclosure sale.

4. Public Auction (Trustee’s Sale)

Your home is placed up for auction, and bidders can compete to purchase it. If there are no bidders, the property reverts to the lender as a Real Estate Owned (REO) property.

No redemption period: Unlike some states, California does not allow you to reclaim your home after the sale.
Once the sale is completed, you must vacate the property, and the new owner can initiate an eviction process if necessary.

How to Stop or Avoid Foreclosure in Los Angeles

If you’re facing foreclosure, time is critical. Here are the most effective strategies to protect yourself:

1. Loan Modification

A loan modification restructures your mortgage to lower payments or extend the loan term. This is one of the most effective ways to avoid foreclosure if you’re experiencing long-term financial hardship.

2. Repayment Plan or Forbearance

If your hardship is temporary, your lender may agree to a repayment plan, allowing you to catch up over time. Forbearance temporarily reduces or suspends payments to help you recover financially.

3. Short Sale

If your home is worth less than what you owe, a short sale allows you to sell the property with the lender’s approval for less than the outstanding mortgage balance. This option can be less damaging to your credit than a full foreclosure.

4. Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is a voluntary agreement where you transfer ownership of the property to the lender in exchange for debt forgiveness. While not ideal, this can prevent the foreclosure from appearing on your credit history.

5. Allow a Buyer to Assume Your Mortgage & Cover Back Payments

One creative and often overlooked solution is allowing a buyer to assume your existing mortgage and pay off your back payments. This benefits both the homeowner and the buyer:

For the homeowner:

✅ Avoids foreclosure and negative impact on your credit score

✅ Can actually improve your credit by showing continued mortgage payments

✅ Provides a way out without the hassle of selling traditionally

For the buyer:

✅ No need for new financing, which can save time and costs

✅ May require less money upfront compared to buying a home traditionally

✅ Offers a streamlined process compared to conventional purchases

Our team works with many buyers who specialize in purchasing homes this way. If you’re interested in learning how this could work for you, schedule a call with us today.

6. Bankruptcy (Last Resort)

Filing for Chapter 13 bankruptcy can halt foreclosure and give you time to reorganize your finances. However, this is a serious legal action that requires professional consultation.

Los Angeles County Foreclosure Assistance & Resources

Los Angeles homeowners have access to several local and state resources to help prevent foreclosure:

Los Angeles County Consumer & Business Affairs (DCBA) – Offers free foreclosure prevention counseling.
Keep Your Home California – A state program that provides mortgage assistance.
HUD-Approved Housing Counselors – Free or low-cost advisors who can guide you through loan modifications and loss mitigation options.
Legal Aid Foundation of Los Angeles (LAFLA) – Provides legal assistance to homeowners in foreclosure.

Final Thoughts: Take Action Before It’s Too Late

Foreclosure in Los Angeles County moves quickly, but you still have options. The sooner you act, the more solutions are available to you. Whether it’s negotiating with your lender, exploring legal options, or seeking professional help, being proactive can make all the difference.

If you’re unsure of your next step, reach out to a foreclosure specialist or real estate expert to discuss your best course of action. The key is to take control of your situation before the foreclosure process takes control of you.

Get Expert Help Today – Book a Free Consultation

Facing foreclosure can be overwhelming, but you don’t have to go through it alone. My team specializes in helping Los Angeles homeowners navigate foreclosure, negotiate with lenders, and explore the best solutions to protect their homes and financial futures.

Why Choose Us?

✅ Expert foreclosure guidance tailored to Los Angeles homeowners

✅ Proven negotiation strategies to stop or delay foreclosure

✅ Access to alternative solutions, including short sales, loan modifications, and mortgage assumption options

✅ Free, no-obligation consultation to review your options

📞 Call us now or book a free consultation online to discuss your situation. Don’t wait—your home and financial future depend on taking action today.

Disclaimer: This article is for informational purposes only and should not be taken as legal or financial advice. Always consult with a professional advisor to discuss your specific situation.