Foreclosure, probate, and home-selling FAQ

Foreclosure is the legal process a lender uses to sell a home when the loan isn't paid as agreed. California law lets a lender foreclose without going to court when the deed of trust has a "power of sale." A trustee runs that process, following notice rules set by state law.

Under federal rules, a servicer generally can't make the first foreclosure notice or filing until you're more than 120 days behind. In California, the servicer also has to contact you, or make a real effort to, at least 30 days before recording a Notice of Default.

It's the first official step. It says your loan is in default and shows what you'd need to pay to catch up as of a certain date. After it's recorded, at least three months must pass before the trustee can give notice of a sale. It's a good time to call your servicer and a free HUD-approved housing counselor.

It's the notice that sets the auction date, time, and place. It must be posted on the property, posted in a public place, published in a newspaper once a week for three weeks, and recorded, all at least 20 days before the sale.

It depends on where you are. In general: more than 120 days of missed payments before foreclosure can start, at least three months after the Notice of Default before a sale can be noticed, and at least 20 days between the Notice of Trustee's Sale and the auction. Dates can change, so check your notices and confirm with your servicer or the trustee. See our California foreclosure guide.

Yes, sale dates are sometimes moved, but never count on it. California law allows postponements of up to 365 days in total from the date in the notice of sale. Call the trustee to confirm the current date. We can't promise or arrange a postponement.

Your servicer sends your statements and takes payments, and it's who you apply to for help. The trustee is the company named on the foreclosure notices. It records them and runs the sale.

The home belongs to the winning bidder or the lender. A new owner who wants a former owner to leave must give a written 3-day notice and go through the court eviction process. If the sale brought in more than was owed, leftover money is paid out to other lienholders and then to the former owner. Talk to an attorney about your rights.

California generally doesn't allow a lender to collect a deficiency after a trustee's sale under a power of sale. There are exceptions, and other loans on the home may be different, so ask an attorney about your situation.

Month-to-month tenants generally get at least 90 days' written notice after a foreclosure sale. A fixed-term lease signed before the sale is generally honored, with some exceptions. A tenant rights group or attorney can help.

Possibly. Common options include reinstatement, a repayment plan, forbearance, a loan modification, or a refinance. These are arranged directly with your servicer. We don't handle loan modifications. A HUD-approved housing counselor can help for free: (800) 569-4287. See options to keep your home.

Reinstatement means paying everything past due, plus allowed fees and costs, to bring the loan current. In California you can usually reinstate from the time the Notice of Default is recorded until 5 business days before the sale date. If a new notice of sale is recorded, that right comes back until 5 business days before the new date. Ask the trustee or servicer for your exact amount.

Forbearance temporarily pauses or lowers your payments, and you still owe and repay the difference later. A loan modification permanently changes your loan terms, such as the rate or length, to make payments more affordable.

Dual tracking is when a servicer pushes a foreclosure forward while reviewing your request for help. Under California's Homeowner Bill of Rights, if you send a complete first-mortgage loan modification application at least 5 business days before a scheduled sale, the servicer generally can't record foreclosure notices or hold the sale while it decides.

When you ask a larger servicer for help avoiding foreclosure, California law requires it to give you a specific person or team who knows your file, tells you what's missing, and can get you a decision.

No. In California you can't be charged a fee to apply for a loan modification. Be very careful with any company that wants money upfront to "get" you one.

Yes. HUD says HUD-approved housing counseling agencies can't charge you to help explore your options if you're having trouble paying your mortgage. Call (800) 569-4287 or search the CFPB counselor finder.

That's a legal decision only you and a licensed bankruptcy attorney can make. In general, Chapter 13 involves a 3-to-5-year repayment plan, and filing creates an automatic stay that stops a foreclosure proceeding while it's in effect. It has serious trade-offs, and the home can still be lost. We're not qualified to advise on it. If you already have an attorney, we're glad to include them in any conversation.

No, and we won't promise that. No one can honestly guarantee a foreclosure will be stopped or postponed. What we can do is explain your general options in plain English, including ones that don't involve us, so you can decide quickly. Be careful with anyone who guarantees a result or asks for money upfront.

Not for a regular sale where the price covers what you owe. The loan gets paid off at closing and you keep what's left. It helps to tell your servicer your plans. A short sale (selling for less than you owe) does need your servicer's approval.

A short sale is when you sell for less than you owe and your servicer agrees to accept the sale proceeds. You need approval from your servicer, and from any other lender with a loan on the home. Ask for any waiver of the remaining balance in writing, and talk to a tax professional about tax effects.

It's when you voluntarily give the home to your lender instead of going through foreclosure. It needs your servicer's approval. Make sure it covers the entire balance you owe, get that in writing, and ask about help with moving costs.

No. Talking with us doesn't obligate you to anything. You may decide to keep your home or sell another way, and that's okay. If we make an offer, you can take your time, compare it with other options, and say no.

Usually not. A cash offer is typically lower than what a fully repaired home might sell for on the open market. In exchange, you skip repairs, showings, and agent commissions, and the sale is usually faster and simpler. Compare both before you decide.

That's fine. We buy homes as-is, so you don't need to fix, clean, or stage anything.

It depends on things like title, your loan payoff, and your sale date. We work around your timeline wherever we can and will give you a realistic estimate in writing.

Yes, in many cases. If you live in the home and a Notice of Default has been recorded, California law lets you cancel a sale contract with a buyer like us until midnight of the 5th business day after you sign, or 8 a.m. on the day of the foreclosure sale, whichever comes first. The required notice will be in our written contract. See your cancellation rights.

In some cases we buy the home ourselves. In others, we may work with a partner buyer or assign our purchase contract. We'll tell you which in writing before you sign.

No. Property in a living trust, property owned in joint tenancy with a living co-owner, and property passing to a surviving spouse usually don't count toward a probate estate. For deaths on or after April 1, 2025, a primary residence worth up to $750,000 may qualify for a simpler court petition. See our probate guide.

The California courts say formal probate typically takes 9 to 18 months, and sometimes longer.

Yes. Once the court appoints a personal representative and issues Letters, that person can usually sell. With full authority under the IAEA, they give heirs a Notice of Proposed Action at least 15 days ahead. With limited authority, or if someone objects, the sale goes to a court confirmation hearing.

The judge reviews the sale. For a private sale, the price must be at least 90% of a recent appraisal. Other buyers can overbid: the first overbid must be at least 10% more on the first $10,000 and 5% more on the rest. On a $400,000 offer, that's at least $420,500.

Tell the servicer about the death, be ready to show proof like the will, death certificate, or executor's letter, and ask how to keep making payments or apply for a modification. Missed payments can still lead to foreclosure while probate is open, so tell the estate's attorney about any notices right away.

It's common. Put all the numbers in writing for everyone, let the estate's attorney lead, and consider a mediator. With full authority, any heir entitled to notice can object to a proposed sale, which sends it to court.

Often, unless you move in. Under Prop 19, a child can keep a parent's lower tax value only for the family home that becomes the child's principal residence, with a homeowners' exemption filed within one year, and only up to a value limit. Rentals don't qualify. Ask your county assessor for your numbers.

Watch for upfront fees, guarantees to stop a foreclosure, requests to pay your mortgage to someone other than your servicer, "sign over the deed and rent it back" offers, and pressure to sign right away. See how to avoid foreclosure scams.

No. California law says a foreclosure consultant can't collect any fee until every promised service has been fully performed, and you can cancel their contract until midnight of the 5th business day after you sign.

The California Attorney General's Public Inquiry Unit at (800) 952-5225, or the CFPB at (855) 411-2372. If you signed a deed, talk to an attorney or legal aid right away.

No. Our Home Advisor is a local real estate company in San Bernardino that may make offers to buy homes. We're not attorneys, lenders, or a government agency, and we're not affiliated with your lender. We don't give legal or financial advice. For that, talk to a licensed California attorney or a HUD-approved housing counselor.

No. We don't charge homeowners a fee to talk with us or to get an offer. We never ask for money upfront. If you sell to us, we make money as the buyer, and we'll show you every cost in writing before you sign anything.

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