If you’re behind on the mortgage or the HOA dues, the first thing to do is figure out exactly where you stand. Pull out the last statement from your lender or your HOA and look at what’s actually owed and what’s past due. Then call them. Not to argue, just to confirm the numbers and ask what options they have. Lenders and HOA boards deal with this every day, and the person on the phone can tell you more than The Catch-Up Year notice in your mailbox can. Keep a written record of who you talked to and when. If you’re behind on both, handle the mortgage first, because losing the house over the loan is the bigger risk. HOA dues can turn into a lien and eventually a foreclosure too, but the timeline and the process depend on your situation and your HOA’s rules, so don’t assume one moves faster than the other.

On the mortgage side, expect a few notices. Early on you’ll usually get a reminder or a late notice, then something more formal saying you’re in default. Later comes a notice of intent to foreclose, and in California that generally comes with information about your right to request a meeting with your lender. Read every envelope. They look like junk mail and they are not. If you get a notice that mentions a trustee’s sale, that’s serious and you should talk to a lawyer right away. For HOA dues, expect statements with late fees, then letters from the HOA or its collection company, and eventually something about a lien. The exact sequence depends on your HOA’s governing documents, so read those or ask the board for them.

Acting early matters because the options shrink as time passes. Early on, a lender may work with you on a repayment plan or a modification. Once a sale is scheduled, the room to negotiate gets much smaller and the cost of fixing it goes up. The same is true with the HOA. A payment plan worked out before a lien is filed is a lot easier than unwinding one afterward. Also, the longer you wait, the more fees and costs pile on, and those are hard to remove later.

There’s free help in Sacramento County, and you should use it. A HUD-approved housing counselor can go over your budget and your options with you at no cost, and they know the local programs. If the HOA side gets complicated, or if you get a foreclosure notice, talk to a lawyer. If you’re pulling money from retirement or selling something to catch up, check with a CPA first, because the tax consequences depend on your situation. The county may also have resources worth asking about. None of this is a substitute for advice about your specific case, but doing these first steps calmly and quickly gives you the most choices later.

For more on this, see The Catch-Up Year.