The California foreclosure timeline
Most California foreclosures are non-judicial (out of court). The main milestones:
| Milestone | What happens |
|---|---|
| 1–3 months late | The lender calls and writes. Federal rules generally do not allow foreclosure to start before you are more than 120 days late. |
| Notice of Default (NOD) | Recorded with the county and mailed to you. Starts a minimum 3-month period. |
| Notice of Trustee Sale (NTS) | At least 3 months after the NOD. Posted on the house and published, at least about 3 weeks before the sale. |
| 5 business days before the sale | Last day to pay the overdue amount plus costs and keep the house (reinstatement). |
| Auction date | The house sells at auction, often below market value. |
Auction dates can be postponed. Always ask the lender or trustee for the exact date. Read more: Got a Notice of Default: how long you have.
5 options before the auction
- Reinstate: if you can gather the money, you keep the house as it was.
- Loan modification or forbearance: apply early. HUD-approved counselors help for free.
- Sell before the auction: pay the bank in full through escrow and keep the remaining equity. This is where we can help.
- Short sale: if you owe more than the house is worth, sell for less than the balance with the bank's approval. Usually slow and needs an experienced agent.
- Deed in lieu: hand the house to the bank, with its agreement.
Why selling early keeps more of your money
At auction, buyers usually pay low. Late fees and the bank's attorney fees add up each month. And a foreclosure stays on your credit for years. If you sell first, you pay off the exact balance, keep what is left, and avoid the word "foreclosure" on your credit.
Your rights when selling a house in foreclosure
California law (Civil Code §1695) protects homeowners who live in a house with a recorded NOD when they sell to an investor:
- The contract must use a special form that states your rights
- The contract must be in the language used to negotiate: if we talk in Spanish, the contract is in Spanish
- You have the right to cancel within 5 business days after signing
- The buyer cannot make you sign over your deed before the cancellation period ends
We follow all of this. If a buyer dodges these rules, be careful.
Have these ready when you call
- Your Notice of Default or Notice of Trustee Sale, if you have one
- Your latest mortgage statement
- The reinstatement amount, if the lender has given one
- Whether there is a second loan (HELOC) or other lien
Questions
There is already an auction date. Is there still time?
It depends on how many days are left and whether the title is clean. With about 2–3 weeks left, we can often still make it. Call right away. Lenders sometimes postpone the auction once a sale contract exists.
Do I pay you a fee?
No. We are the buyer. Nobody should charge you an upfront fee to "save your home." If someone asks, say no.
Will you buy if I owe more than the house is worth?
That requires a short sale, meaning the bank agrees to accept less than the balance. We will tell you honestly if your case needs a short-sale specialist agent.
Do I have to move out right after the sale?
The move-out date is in the contract. You can often choose a date shortly after closing if agreed in advance.