California foreclosure guide: the timeline, your rights, and your options
Getting a foreclosure notice is scary. It helps to know what each step means and how much time the law gives you. This guide follows the usual path for a California home loan, from the first missed payment to the auction and what comes after.
General information, not legal advice. Every loan is different and dates can change. Check the notices you received, and confirm your dates with your servicer, the trustee, a HUD-approved housing counselor, or a licensed California attorney.
The short version
- Under federal rules, a servicer generally can't start foreclosure until you're more than 120 days behind.
- After a Notice of Default is recorded, at least three months must pass before a sale can be noticed.
- You can usually catch up (reinstate) until 5 business days before the sale date.
- The Notice of Trustee's Sale must be posted, published, and recorded at least 20 days before the auction.
- Free help is available from HUD-approved housing counselors: (800) 569-4287.
The steps, one at a time
California law lets a lender foreclose without going to court when the deed of trust has a "power of sale." A trustee handles the process and follows notice rules set by state law. This is called non-judicial foreclosure, and it's the process described here.
1. Missed payments
Late notices, calls, and letters start soon after a missed payment. Under federal rules, your servicer generally can't make the first foreclosure notice or filing until you're more than 120 days behind.
California also requires the servicer to contact you, or make a real effort to, at least 30 days before recording a Notice of Default, so you can talk about your situation and your options.
Why this stage matters: you usually have the most choices here. A complete application for help sent early gets the most protection.
2. Notice of Default (NOD)
This is the first official step. The trustee records the Notice of Default with the county, and you should get a copy in the mail. It shows how much you'd need to pay to catch up as of a certain date. That amount goes up over time.
After the NOD is recorded, at least three months must pass before the trustee can give notice of a sale.
Your right to reinstate: during this time you can bring the loan current by paying the past-due amount plus allowed fees and costs. That right normally lasts until 5 business days before the sale date. If a new notice of sale is recorded later, the right comes back until 5 business days before the new date.
3. Notice of Trustee's Sale (NTS)
If the default isn't resolved, the trustee sets a sale date. The notice must be posted on the property (usually on the door), posted in a public place, published in a local newspaper once a week for three weeks, and recorded with the county, all at least 20 days before the sale.
It lists the date, time, and place of the auction, and an estimate of what's owed.
4. The trustee's sale (auction)
The home is sold at a public auction to the highest bidder, between 9 a.m. and 5 p.m. on a business day. If no one bids more, the lender usually takes the property back.
Sales can be postponed, sometimes more than once, but not for more than 365 days in total from the date in the notice. Postponements are announced at the sale. Never count on one. Call the trustee (the phone number is on the notice) to confirm the current date.
5. After the sale
Ownership passes to the winning bidder or the lender. See what happens next.
What happens after a sale
- Leftover money (surplus)
- If the sale brings in more than is owed, the money is paid out in this order: the costs of the sale, the loan that foreclosed, any other liens (like a second mortgage), and then you, the former owner. If you think there's a surplus, contact the trustee. Be cautious of anyone who offers to "recover" it for a fee.
- Owing more after the sale
- California law generally says the lender can't collect a "deficiency" (the gap between the sale price and the loan balance) after a trustee's sale under a power of sale. There are exceptions, and other loans on the home may be treated differently, so ask an attorney about your loans.
- Moving out
- A new owner who wants a former owner to leave must serve a written 3-day notice to quit and then go through the court eviction process. No one is allowed to change the locks or put you out without a court order. If you're served with court papers, talk to an attorney or legal aid right away, because the deadlines to respond are short.
- If you rent the home
- Tenants on a month-to-month lease 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.
Your rights: the California Homeowner Bill of Rights, in plain terms
These laws mainly protect people with a first mortgage on the home they live in (1 to 4 units). Some apply only to larger servicers.
- No "dual tracking." If you send a complete application for a first-mortgage loan modification at least 5 business days before a scheduled sale, the servicer can't record a Notice of Default or Notice of Sale, or hold the sale, while it's deciding.
- Time after a denial. If you're turned down, the servicer has to give its reasons in writing. It generally can't move forward until at least 31 days after telling you, and you can appeal.
- One point of contact. When you ask for help avoiding foreclosure, a larger servicer must give you a specific person or team who knows your file, tells you what's missing, and can get you a decision.
- No fee to apply. You can't be charged a fee to apply for a loan modification.
- Agreements are honored. While you're keeping up with an approved written modification, forbearance, or repayment plan, the servicer can't foreclose. If your loan moves to a new servicer, the new one must honor the agreement.
- Accurate paperwork. Servicers must check that foreclosure documents are accurate and backed by reliable evidence.
If you think your servicer broke these rules, talk to a lawyer or legal aid. You can also file a complaint with the California Attorney General or the CFPB at (855) 411-2372. A complaint doesn't automatically stop a foreclosure.
Who's who in your paperwork
- Servicer
- The company that sends your monthly statement and takes payments. This is who you apply to for help. The phone number is on your statement.
- Lender or investor
- Whoever owns the loan. They're often not the same company as the servicer.
- Trustee
- The company named on the foreclosure notices. It records the notices and runs the sale. Call the trustee to confirm a sale date or ask for a reinstatement amount.
Keep the home, or sell it?
Most people want to stay if they can. Some need a fresh start. Both are reasonable, and it's okay not to know yet.
I want to save my home
Reinstatement, repayment plans, forbearance, loan modification, refinancing, Chapter 13, and free housing counselors, explained plainly.
See the options to keep your home → Path 2I want or need to sell
Listing with an agent, a short sale, a cash sale, or a deed in lieu, with the honest trade-offs of each.
See the options to sell →Inherited the house, or is the owner deceased? See Probate & Inherited Homes.
What to do this week
- Open every letter from your servicer and the trustee. Write down the dates on any notices.
- Call your servicer and ask: How far behind am I? What's my reinstatement amount? What options can I apply for, and what's the deadline?
- Call a free HUD-approved housing counselor at (800) 569-4287. They can help you understand your options and your application.
- Keep copies of everything you send, and write down who you talked to and when.
- Watch out for scams. Don't pay anyone upfront to "save" your home. Here's how to spot them.
Want to talk it through?
We'll listen and explain your general options in plain English. Up front: we're a company that buys houses, so a cash offer from us may be one of those options. You're never obligated to sell.
Or call (909) 999-1339, 8 AM to 8 PM Pacific.