Behind on Your Mortgage in Lodi or Stockton? What to Do First
DISTRESSED HOMEOWNERS SERIES · PART 1
A step-by-step guide for San Joaquin County homeowners, from someone who has been there. By Jesse J. Rivas, REALTOR® · Updated November 2026
| The short answer If you’re behind on your mortgage in California, act during the first 120 days: call your servicer, talk to a free HUD-approved housing counselor, and find out what your home is worth. After a Notice of Default, California law allows at least three months plus 20 days before an auction, and you can generally catch up until five business days before the sale. The earlier you start, the more options you have. |
I lost a home to foreclosure. I rebuilt my credit one collection account at a time and bought again. So I’m not writing this from a textbook. I’m writing the guide I wish someone had handed me.
Foreclosure activity is rising in California. The state logged 21,543 properties with foreclosure filings in the first half of 2026, about 13% more than a year earlier, according to ATTOM data. Levels are still well below the 2008 crisis, when Stockton had the highest foreclosure rate of any U.S. metro. But if you’re the one who’s behind, statistics don’t matter much. Your timeline does.
Step-by-step: what to do this week
- Open every piece of mail from your servicer and the trustee. Put it in one folder. The dates in those letters are real deadlines.
- Call your servicer and get four answers. How many payments am I behind? What is my reinstatement amount? Has a Notice of Default been recorded? Which loss-mitigation options can I apply for? Write down the date, the name, and what they said.
- Call a HUD-approved housing counselor. It’s free. In Stockton, Visionary Home Builders of California is HUD-approved and counsels in English and Spanish: (209) 466-6811. Anywhere in the U.S.: (800) 569-4287.
- Write a simple budget. Monthly take-home pay, the mortgage, and every other bill. Counselors and servicers will ask for this.
- Find out what your home is worth. If you have equity, you have choices, including selling on your terms instead of losing it at auction.
- Decide your goal: keep the home or leave on your terms. You don’t have to decide on day one, but you need to decide before the deadlines decide for you.
How the California foreclosure timeline works
Most California home foreclosures are “nonjudicial,” meaning they happen outside of court under the deed of trust. Here is the general sequence.
| Stage | What happens | ||
| First 120 days behind | Federal rules generally prevent the servicer from starting foreclosure until you’re more than 120 days delinquent. This is the best time to apply for help. | ||
| 30-day outreach | Before recording a Notice of Default, the servicer must contact you (or make specific attempts), assess your situation, and give you the HUD housing counselor number. | ||
| Notice of Default | Recorded with the San Joaquin County Recorder. You then have three months to cure the default. | ||
| Notice of Trustee’s Sale | Sets the auction date, at least 20 days after the three-month period. It is posted on the property, published, and mailed. | ||
| Reinstatement deadline | You can generally bring the loan current until five business days before the sale. | ||
| Trustee’s sale | A public auction, typically at the courthouse entrance on East Weber Avenue in downtown Stockton for San Joaquin County properties. | ||
| One tip if you tend to avoid the mail Since January 1, 2025, your servicer must tell you that a family member, attorney, or HUD-approved counselor can record a request to receive copies of the Notice of Default and Notice of Sale. If opening the envelopes is hard for you, let someone you trust get copies too. | |||
Your options, in plain English
| Option | What it is | Best when |
| Reinstatement | Pay all past-due amounts, fees, and costs in one lump sum | The hardship is over and you have the funds |
| Repayment plan | Spread the past-due amount over several months on top of your payment | Short-term setback, income is back |
| Forbearance | A temporary pause or reduction in payments | Temporary hardship (job loss, medical, disaster) |
| Loan modification | Permanently changes the loan terms to lower the payment | Income dropped long-term but you can afford a lower payment |
| Sell the home | A normal sale; you keep the equity left after the loan and costs | You have equity and the payment no longer fits your life |
| Short sale | Sell for less than you owe, with lender approval | You owe more than the home is worth |
| Deed in lieu | Give the home back to the lender instead of foreclosure | No equity, and a sale isn’t realistic |
| Bankruptcy | An automatic stay pauses the sale; Chapter 13 may let you catch up over time | Talk to a bankruptcy attorney |
California bans “dual tracking.” If you submit a complete first-lien loan modification application at least five business days before a scheduled sale, the servicer generally can’t record notices or hold the sale while the application is pending.
Free, legitimate help in San Joaquin County
| Resource | What they do | Contact | ||
| Visionary Home Builders of California (Stockton) | HUD-approved housing counseling, including mortgage delinquency and default; English and Spanish | 315 N. San Joaquin St., Stockton · (209) 466-6811 | ||
| HUD housing counselor locator | Find any HUD-approved agency near you | (800) 569-4287 · consumerfinance.gov/find-a-housing-counselor | ||
| California Rural Legal Assistance (CRLA) | Free legal help for income-qualified homeowners; serves San Joaquin County | (800) 337-0690 · crla.org | ||
| California Courts Self-Help Guide | Plain-language foreclosure and mortgage resources | selfhelp.courts.ca.gov | ||
| CalAssist Mortgage Fund | Grants for homes destroyed or made uninhabitable by a qualifying disaster (not general hardship) | (800) 501-0019 · calassistmortgagefund.org | ||
| Red flags: walk away if someone… …wants a fee up front to “save your house.” California law bars foreclosure consultants from collecting any payment until they have fully performed every service they promised. …asks you to sign over your deed, give them power of attorney, or stop talking to your lender. …guarantees they can stop the foreclosure. Nobody can honestly guarantee that. | ||||
Frequently asked questions
How long does foreclosure take in California?
After the Notice of Default, there is a three-month cure period, and the sale must be at least 20 days after that. So the minimum is roughly four months from the Notice of Default, and the whole process from the first missed payment usually takes much longer. In 2026, ATTOM reported properties foreclosed nationally spent an average of 563 days in the process.
Can I still sell my house if I received a Notice of Default?
Yes. You can sell up until the trustee’s sale, and a 2025 California law can postpone the sale by 45 days if you list with a licensed broker and notify the trustee in time. See Part 3 of this series.
Will the lender come after me for the remaining balance?
After a nonjudicial foreclosure, California generally does not allow a deficiency judgment (Code of Civil Procedure § 580d). Second loans and other situations can differ, so ask an attorney about yours.
Is housing counseling really free?
Yes. HUD-approved housing counseling agencies provide foreclosure prevention counseling free of charge.
Distressed Homeowner Series
- Part 1: Behind on Your Mortgage? What to Do First (you are here)
- Part 2: Why We Don’t Open the Mail → [link]
- Part 3: Selling Before Foreclosure to Protect Your Equity → [link]
| About the author Jesse J. Rivas, REALTOR® (DRE #02282782) is an agent with Jesse Rivas Realty, Keller Williams Central Valley (Broker DRE #02324551), based in Lodi, California. He serves buyers, sellers, and homeowners facing financial hardship across Lodi, Stockton, Manteca, and San Joaquin County. Before real estate he spent 23 years in heavy civil construction. He went through a foreclosure himself, rebuilt his credit, and bought again. This article is general education, not legal or tax advice. Jesse is not an attorney or tax professional. |
| Talk it through, confidentially If you’re behind on payments in Lodi, Stockton, or anywhere in San Joaquin County, I’ll walk through your timeline and options and tell you what your home could sell for. No cost, no pressure, and no obligation to list. Call or text (510) 506-3800 · JesseRivas@KW.com · JesseRivas.KW.com |
Jesse J. Rivas, REALTOR® · DRE #02282782 · Keller Williams Central Valley · Broker DRE #02324551 · Equal Housing Opportunity. Laws and programs change; confirm current rules with a HUD-approved counselor or attorney.
Sources
- The Norris Group — CA foreclosure filings rise 13% in first half of 2026 (citing ATTOM) — https://www.thenorrisgroup.com/post/ca-foreclosure-filings-rise-13-in-first-half
- ATTOM — Foreclosure activity rises as the market continues to normalize (Midyear 2026) — https://www.attomdata.com/hnr/foreclosure-activity-rises-as-the-market-continues-to-normalize/
- HousingWire — U.S. foreclosures rise in 2026 midyear ATTOM report (563-day average timeline) — https://www.housingwire.com/articles/us-foreclosures-rise-2026-midyear-attom-report/
- NBC News/AP — Foreclosures more than doubled in 2008 (Stockton ranked first) — https://www.nbcnews.com/news/amp/wbna28663624
- Nolo — California Foreclosure Laws and Procedures (updated 9/29/2025) — https://www.nolo.com/legal-encyclopedia/california-foreclosure-laws-procedures.html
- HUD — Housing counseling agencies in Stockton, CA — https://apps.hud.gov/offices/hsg/sfh/hcc/hcs_print.cfm?searchstate=CA&searchCity=Stockton&webListAction=Search
- CFPB — What is a HUD-approved housing counseling agency? — https://www.consumerfinance.gov/ask-cfpb/what-is-a-hud-approved-housing-counseling-agency-how-can-they-help-me-en-261/
- CalAssist Mortgage Fund — Legal assistance list (CRLA serves San Joaquin County) — https://calassistmortgagefund.org/legal-assistance/
- California Courts Self-Help — Foreclosure and mortgage help — https://selfhelp.courts.ca.gov/foreclosure-and-mortgage-help
- CalAssist Mortgage Fund — program overview (disaster-affected homes) — https://calassistmortgagefund.org/
- California Civil Code § 2945.4 (prohibited foreclosure consultant practices) — https://law.counselstack.com/statute/ca/CIV/2945.4.
