California’s Foreclosure Process Step-by-Step

Distressed Sellers Arielle Dixon February 19, 2025

How Foreclosure Works in California

Most foreclosures in California follow a nonjudicial process, meaning they occur outside of court. This speeds up the timeline for lenders but doesn’t eliminate homeowner protections. Understanding each step is critical so you can avoid costly mistakes and explore the best way forward.

Step 1: Missed Payments & Lender Contact

Lenders must attempt to contact borrowers at least 30 days before filing a Notice of Default (NOD) to discuss loss mitigation options.

Step 2: Notice of Default (NOD)

After 90 days of missed payments, the lender records an NOD, officially starting the foreclosure process. Homeowners still have 90 days to reinstate the loan.

Step 3: Notice of Trustee’s Sale

If the loan is not reinstated, the lender records a Notice of Trustee’s Sale at least 21 days before the auction date.

Step 4: Foreclosure Auction & Sale

The property is sold to the highest bidder or reverts to the lender as an REO (Real Estate Owned) property.

Key Mistakes to Avoid

Ignoring lender communication – Many homeowners assume they have no options when, in reality, they do.
Waiting too long – Acting early opens the door for loan modifications, short sales, or alternative solutions.
Falling for scams – Avoid companies promising to “save” your home with upfront fees.

Foreclosure moves quickly, but AB 2424 has introduced new safeguards that could give you more time to act—if you take the right steps now. No two cases are the same, and I’m here to help you explore solutions tailored to your needs. Contact me today for a private, pressure-free consultation.

📞 Call me at 510-692-2720
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🌐 Visit my website: arielledixon.com

📌 Disclaimer: This article is for informational purposes only and should not be considered legal advice. If you need legal guidance, I can connect you with an attorney well-versed in California foreclosure law.