How do I formally respond to a Notice of Default on my home loan in California?

To formally respond to a Notice of Default in California, you must take direct action with your loan servicer to cure the default, as there is no specific court form to file. Your primary options are to reinstate the loan by paying the past-due amount or to apply for a loan modification. Here are the steps to take: Step 1: Review the Notice of Default Immediately Carefully read the entire document. Identify the date it was recorded, the exact amount required to cure the default (past-due payments, fees, and costs), and the contact information for your loan servicer and the foreclosure trustee. Step 2: Contact Your Loan Servicer Call your loan servicer right away. Inform them you have received the Notice of Default and want to discuss your options. Ask for their loss mitigation department and request a single point of contact, which you are entitled to under California law. Discuss both reinstatement and loan modification options. Step 3: Request an Official Reinstatement Quote If you can pay the past-due balance, you must request a formal, written reinstatement quote from the trustee or servicer. This amount changes daily. Under California Civil Code Section 2924c, you have the right to reinstate your loan by paying this full amount anytime up to five business days before the scheduled foreclosure sale date. Step 4: Pay the Reinstatement Amount Once you have the official quote, pay the exact amount using certified funds (like a cashier's check) as instructed by the trustee. Paying this amount in full will stop the current foreclosure process and bring your loan current. Step 5: Apply for a Loan Modification if You Cannot Reinstate If you cannot afford to reinstate the loan, you must submit a complete loan modification application to your servicer immediately. Gather all required documents, such as recent pay stubs, tax returns, bank statements, and a hardship letter. Under California Civil Code Section 2924.11, servicers are prohibited from advancing the foreclosure (a practice called "dual tracking") while a complete loan modification application is pending review. Important considerations: The Notice of Default starts a minimum 90-day waiting period before the lender can record a Notice of Sale. You have this time to act. It is crucial to send any applications or documents via a method with tracking, like certified mail, to prove when you sent them. Note: Be wary of foreclosure rescue scams that ask for upfront fees or ask you to sign over your property deed. Only work directly with your servicer or a HUD-approved housing counseling agency. Time is critical, so do not delay. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney or a HUD-approved housing counselor to understand your specific rights and options.