I live in southern Calif. Our city has a program for 1st. Time buyers where they will lend you $15,000.00 toward your purchase of a home. I bought a mobile home and paid cash for the balance June 2012. Which only leaves me rent I pay for the space. I've lost my job. So I'm doing side jobs to get rent money together. Due on the 1st.of the month. I've paid every month, but I'm always 12-15 days late. I talked to the person that handles the city loans in (Dec. 2012). Letting her know I've been trying to get a job.I'm on line filling out applications. She was very nice, said she understood. She said nothing about putting me in default. Today (march 12, 2013) I have a notice of defualt on my door.City wants their loan paid back because of late rent payments. Do I have any options at this point?
Thank you.

Default is basically automatic, if you are late or non payment for a number of times, esp on government programs. It still does not mean they will not work with you, does not mean they will do other action, just means they are protecting their rights to do so.

So after getting the letter you went down and talked to them in person, and what did they say?