This checklist is organized by area, financial, legal, property, and personal, rather than by legal stage, since protecting what matters most usually requires attention across all of these at once. Work through each section, checking off what applies to the current situation.
Financial Steps
☐ Get an exact payoff statement from the mortgage servicer, including missed payments, fees, and interest
☐ Confirm the current market value of the property through a recent comparable sales estimate
☐ Calculate the actual equity position: current value minus the full payoff amount and any other liens
☐ List every other lien on the property, a second mortgage, HOA dues, property taxes, or a judgment
☐ Review household income and expenses honestly to determine whether the underlying hardship is temporary or lasting
☐ Avoid draining retirement savings or taking on new high-interest debt without confirming this actually solves the problem
☐ Set aside funds separately if planning to reinstate the loan, rather than spending them on other pressing needs
Legal and Document Steps
☐ Gather every mortgage statement, notice, and piece of correspondence from the servicer in one place
☐ Confirm whether a Notice of Default or Notice of Trustee Sale has been recorded, checked directly through the Los Angeles County Registrar-Recorder/County Clerk
☐ Request the payment history, promissory note, and deed of trust if there’s reason to question the lender’s right to foreclose
☐ Confirm whether a trusted family member, attorney, or HUD-approved counselor should be authorized to receive copies of foreclosure notices
☐ Have any unusual agreement, especially a deed transfer or anything resembling a rescue offer, reviewed by an attorney before signing
☐ Keep a written log of every phone call with the servicer: date, representative’s name, and what was discussed
☐ Request written confirmation of any agreement, including trial payment plans or forbearance terms
Property Protection Steps
☐ Keep basic maintenance current where financially possible, since deferred issues can reduce the property’s value
☐ Confirm homeowners insurance remains active and paid, since a lapse can create additional complications
☐ Address any known code violations or safety issues that could otherwise escalate separately from the mortgage situation
☐ If the property is tenant-occupied, confirm rent collection status and whether the tenancy affects the overall timeline
☐ Secure the property appropriately if it becomes vacant at any point during this process
Options and Decision-Making Steps
☐ Contact the mortgage servicer directly and ask about forbearance, a repayment plan, or a loan modification
☐ Contact a HUD-certified housing counselor for a free review of the full situation
☐ Decide honestly whether keeping the home is realistic given the hardship and the numbers
☐ If selling is a real possibility, order a preliminary title report to identify every lien early
☐ Compare traditional, as-is, short sale, and direct sale options against the actual time remaining
☐ Confirm refinancing eligibility honestly before assuming it’s available, since it generally requires the loan to be current or close to it
Scam Protection Steps
☐ Never pay an upfront fee for foreclosure or mortgage relief assistance, since this is illegal in California
☐ Be cautious of any offer promising a guaranteed outcome without reviewing the actual numbers
☐ Verify any company or individual offering help through a state license lookup or HUD’s counselor directory
☐ Avoid signing a deed transfer or unusual agreement without independent legal review
☐ Confirm that any real transaction goes through a licensed title or escrow company
Personal and Family Steps
☐ Talk with family members who may be affected by the outcome, particularly if the property involves shared ownership or inheritance considerations
☐ Confirm whether a spouse, co-owner, or other party needs to be involved in any decision or agreement
☐ Consider the practical timeline for a move, if selling or a completed foreclosure becomes the outcome
☐ Reach out for personal support if the situation is taking an emotional toll, separate from the practical steps involved
Quick Reference Summary
| Category | Core Action |
|---|---|
| Financial | Get the payoff amount and calculate real equity |
| Legal and documents | Confirm exactly what’s been recorded and gather all paperwork |
| Property | Maintain the property and keep insurance active |
| Decision-making | Contact the servicer and a free housing counselor |
| Scam protection | Never pay upfront; verify before signing anything |
| Personal | Involve family and plan practically for any outcome |
A Realistic Example
A homeowner in Lincoln Heights working through this checklist starts with the financial section, requesting a payoff statement and confirming the property still carries meaningful equity despite two missed payments. Moving to the legal section, the homeowner confirms no Notice of Default has been recorded yet and begins keeping a written log of servicer calls. In the decision-making section, a HUD-certified counselor helps confirm that a short-term forbearance solves the immediate problem, since the hardship, a temporary reduction in work hours, is expected to resolve within a few months. Working through the checklist methodically, rather than reacting to any single piece of mail, keeps the situation from escalating further.
Legal and Financial Considerations
None of this is legal or tax advice. An attorney can review any unusual agreement, a specific Notice of Default, or questions tied to shared ownership. A HUD-certified housing counselor can help evaluate options at no cost. A tax professional can address questions tied to a short sale, forgiven debt, or retirement account withdrawals. Title and escrow companies confirm exact payoff amounts and any recorded liens.
Los Angeles-Specific Notes
Given the significant equity many Los Angeles County homeowners have built through rising property values, the financial steps on this checklist, confirming the real payoff amount and current market value, often reveal more available options than initially assumed. Notices of Default, Notices of Trustee Sale, and other liens on Los Angeles County properties are all recorded with the Los Angeles County Registrar-Recorder/County Clerk, the most reliable place to confirm exactly what’s on record for a specific property.
Frequently Asked Questions
Where should I start on this checklist if I don’t know what to do first?
The financial section is a strong starting point: getting an accurate payoff statement and current market value clarifies the real numbers before anything else gets decided.
Do I need to complete every item before making a decision?
Not necessarily, but working through each category at least once gives a fuller picture than focusing on only one area, like the mortgage, while overlooking others, like other liens or property maintenance.
What’s the most commonly overlooked item on this checklist?
Keeping a written record of servicer calls and getting agreements confirmed in writing. Verbal promises don’t always match what shows up later in official paperwork.
Is it too late to use this checklist if I’ve already received a Notice of Trustee Sale?
No. Every category still applies, though the timeline for acting on the decision-making steps becomes more urgent.
Should I involve my family in this process?
If the property involves shared ownership, inheritance considerations, or a spouse or co-owner, yes. Decisions made without everyone involved can create complications later.
What if I can’t tell whether I should keep the house or sell it?
A HUD-certified housing counselor, combined with an honest look at the financial numbers from this checklist, is the most reliable way to sort that out.
How do I protect myself from scams while going through this process?
Never pay an upfront fee, verify anyone offering help through official channels, and have any unusual agreement reviewed by an attorney before signing.
Does this checklist replace legal advice?
No. It’s a practical starting framework. An attorney or HUD-certified housing counselor should still be part of the process for anything involving specific legal deadlines or unusual agreements.
How EZ Casa Buyer May Help
We talk with Los Angeles homeowners working through exactly this kind of checklist, and we’re glad to help confirm the financial numbers, the payoff amount, current value, and any other liens, so a decision can be made with real information rather than guesswork.
Tell Us About Your Property
Where to Get Foreclosure Assistance in Los Angeles
Homeowners facing foreclosure do not have to rely on a single solution. You can contact your mortgage servicer, speak with a HUD-approved housing counselor, explore legal assistance, or consider selling the property. HUD-approved foreclosure prevention counseling is available at no charge. If you are facing foreclosure in Los Angeles, getting reliable information early can help you understand which options fit your situation.
Should You Keep or Sell Your House When Facing Foreclosure?
Deciding whether to keep or sell your property depends on your finances, mortgage balance, available equity, and ability to afford future payments. Homeowners who want to stay may first explore available options with their mortgage servicer, while those who can no longer comfortably afford the property may consider selling. HUD recommends contacting your servicer as soon as mortgage problems develop because available workout options can become more limited as you fall further behind. If you are facing foreclosure in Los Angeles, compare the financial impact of keeping the property with the potential benefits of selling before making your decision.