How California Foreclosure Works

How a California foreclosure moves, step by step. Most California home loans are deeds of trust, foreclosed outside court by a trustee. The whole process takes about four months at minimum and often six or more. Here is each step and what it means for a buyer.

1. Missed payments. Nothing is recorded yet. The lender must try to contact the owner before starting.
2. Notice of Default (NOD) recorded. The foreclosure officially begins. Wireroom shows this as Default.
   • The owner has at least 3 months to bring the loan current (“reinstate”).
   • Reinstatement stays available until 5 business days before the sale.
3. Notice of Trustee’s Sale (NTS) recorded. Only after the 3 months run. It sets a sale date at least 20 days out, and is posted, mailed and published. Wireroom shows this as Auction.
4. Postponements. The sale can be moved by the lender, the owner’s agreement, a court order, or a bankruptcy filing. After three postponements announced at the sale, a new notice is required. This is why listed auction dates are often out of date.
5. Trustee’s sale. A public auction, usually at the county courthouse. Bidders pay in cashier’s checks.
6. The 45-day window (1–4 unit homes). If an owner-occupant buyer wins the auction, the sale is final right away. Otherwise tenants living there, would-be owner-occupants, and certain nonprofits, community land trusts and public agencies can file a notice of intent or a bid within 15 days, and a qualifying bid within 45 days. Until then, the auction winner doesn’t own the house. (Civil Code § 2924m, in effect through 2030.)
7. REO. If no bid beats the lender’s credit bid, the lender takes the property. Wireroom shows this as REO, and later REO sale when it’s resold.

General information about California law, not legal advice; using Wireroom does not create an attorney-client relationship. Timing rules have exceptions; confirm with the trustee or a lawyer before acting. References: California Civil Code §§ 2924, 2924c, 2924f, 2924g and 2924m.