DCBA Stories is an ongoing series of articles showcasing the many ways the staff of the Department of Consumer and Business Affairs answer the call to help the people of Los Angeles County.
The Department of Consumer and Business Affairs Foreclosure Prevention Unit has a team of counselors skilled in helping rental property owners with 15 or fewer units avoid foreclosure and facilitate communication with lenders.
A local property owner, whose rental income was impacted by her tenant’s inability to pay rent during the COVID-19 emergency, recently contacted DCBA for assistance in obtaining a loan modification and was helped by Letty, a DCBA Foreclosure Prevention Counselor.
Ms. Brown’s* story begins when the tenant in her rental unit unable to pay rent because of the COVID-19 pandemic – owing $20,000 in back rent. The situation worsened when Ms. Brown fell ill with COVID and was also unable to work. This combination of unfortunate events left Ms. Brown at risk of losing her rental property to foreclosure.
She applied for the state’s CA COVID-19 Rent Relief Program and believes that she will eventually receive monetary relief from the back rent owed by her tenant. However, prior to the relief being granted, she received a statement from her mortgage company saying she was in danger of foreclosure and needed to pay approximately $40,000 immediately to become current on her mortgage.
Ms. Brown stated that her lender offered to add the amount in arrears to her principal balance, but when she applied for a loan modification she was denied. After several unsuccessful attempts to speak with a representative at her mortgage company, Ms. Brown turned to DCBA.
Our counselor worked with Ms. Brown to gather all the necessary documentation to submit with her completed loan modification application and she ultimately received a permanent modification, which placed the arrears at the end of the loan and allowed her to continue making monthly payments on her account.
If you are a property owner seeking information about how to avoid a foreclosure or available relief programs, visit dcba.lacounty.gov/foreclosure-prevention. You can speak to a DCBA Foreclosure Prevention counselor by calling (800) 593-8222 or make an appointment to have a DCBA counselor call you at a time most convenient for you.
You can also watch the Foreclosure Prevention team’s comprehensive webinar series, Help For Homeowners, on DCBA’s YouTube page.
* Note: Some names and specific details of cases featured in DCBA Stories have been adjusted to respect the privacy of our team members and the people we serve.
