What can I do if the lender on my home is an individual and he is refusing to cash my monthly payment checks?

Have an attorney write a letter. If that doesn't work file a lawsuit and seek injunctive relief.

You should consult an attorney right away or you may lose legal rights. You need an attorney to look at your deed of trust. It probably says that if the loan payments are delinquent for some particular length of time, the lender has the right to declare a default and proceed with foreclosure. It probably also says that once default is declared, the lender may refuse to accept payments. The lender is required to allow you to reinstate the loan, but he is entitled to demand costs, including attorney fees, incurred as a result of the foreclosure. If you are saying that your payments were never delinquent and the foreclosure is thus unlawful, an attorney may be able to file suit against the lender and get a temporary restraining order/preliminary injunction to stop the foreclosure process. This gives you the time and opportunity to prove that all your payments were in full and on time and therefore the default and foreclosure are illegal. However, this has to be done quickly, so you should arrange an appointment with an attorney as soon as possible. Your local county bar association may have a lawyer referral program that can set up an appointment with a real estate law specialist for a nominal fee.