How foreclosure works in California

Checked against the sources at the bottom on Oct 11, 2026.

Almost all California home foreclosures happen outside of court. The deed of trust lets a trustee sell the property at a public auction, and the Civil Code sets out the steps, the waiting periods and, since 2021, who else gets a shot at buying after the sale.

Before anything is recorded

For most loans on someone's main home, federal rules keep the servicer from starting a foreclosure until the borrower is more than 120 days behind. For an owner-occupied home, California also requires the servicer to contact the borrower (or make a real effort to) about options to avoid foreclosure, and then wait 30 days before recording the first notice.

Step 1: the notice of default

The first public record is a notice of default, recorded with the county recorder. It identifies the deed of trust, says the borrower is behind, and says the lender has chosen to sell.

From there, at least three months have to pass before the next step. During that time, and right up to five business days before the sale date, the borrower can reinstate by paying what's past due plus allowed fees and costs, not the whole loan. Some cases end here: the borrower catches up or sells, and the lender records a rescission of the notice.

Step 2: the notice of trustee's sale

After the three months, the trustee schedules the auction with a notice of trustee's sale. At least 20 days before the sale, it has to be:

• recorded with the county recorder,
• posted on the property and in a public place nearby, and
• published in a local newspaper once a week for three weeks in a row.

The notice can be recorded up to five days before the three months run out, but the sale itself can't be earlier than three months and 20 days after the notice of default was recorded. The notice lists the parcel number, the trustee's contact details, the unpaid balance and estimated costs, and the date, time and place of the sale.

Step 3: sale day, and postponements

Trustee's sales are public auctions held in the county on a business day between 9 a.m. and 5 p.m., often at a courthouse or civic center. Bidders need cash or cashier's checks, and the trustee can ask to see the funds before you bid.

Many scheduled sales don't happen on the first date. The trustee can postpone a sale by announcing it at the time and place of the sale, for reasons like a court order, a bankruptcy, an agreement with the borrower or the trustee's own discretion. Postponements can add up to 365 days from the date in the notice; after that, a new notice of sale is required.

A law that took effect in 2025 added two more reasons for delay on homes with one to four units. If the owner sends the trustee a listing agreement with a licensed broker at least five business days before the sale, the sale waits 45 days (once). And at the first sale on a first loan, the trustee can't accept a bid below 67% of the home's fair market value. If no one bids that much, the sale is postponed at least seven days and then goes to the highest bidder.

That's why a California sale date is a moving target. Watch for the postponement, not just the first notice.

Step 4: after the gavel, the 2924m window

For homes with one to four units, a trustee's sale isn't always final when the auctioneer says "sold." Under Civil Code section 2924m, if the winner isn't someone who will live there (a prospective owner-occupant), the sale stays open:

• For 15 days, tenants living there, would-be owner-occupants, qualifying nonprofits, community land trusts and public entities can submit a bid or a notice that they intend to bid.
• If any of them sends a notice of intent, they have until 5 p.m. on the 45th day after the sale to bid. Tenants can match the winning bid; the others have to beat it.
• Within 48 hours of the sale, the trustee posts the sale date and winning bid on the website named in the notice, and keeps it up for 45 days.

If nobody steps in, the sale is final after 15 days. The rule runs through the end of 2030; the law repeals it on January 1, 2031.

After the sale

The buyer gets a trustee's deed upon sale. If it's recorded within 21 days (60 days when a 2924m notice of intent was sent), the sale counts as complete as of 8 a.m. on the sale day.

California only gives a right to buy a property back after certain court-ordered sales, not after a trustee's sale. Once the sale is final, the former owner's chance has passed. In exchange, the lender can't sue the borrower for a deficiency after a trustee's sale.

If the sale brings in more than the debt and costs, the trustee has 30 days after signing the deed to mail notice to everyone with a recorded interest, and they have 30 days from that notice to claim the excess.

Tax-defaulted property and the power to sell

Property taxes have their own path. If taxes are still unpaid on July 1, the property is "tax-defaulted." The owner can still pay with penalties and interest, and nothing is sold right away.

After five years in default (three for some nonresidential commercial property), the county tax collector gets the power to sell it. Each year, on or before June 8, the tax collector publishes a list of parcels about to reach that point, and a notice of power to sell is recorded against each one when it gets there.

The board of supervisors has to approve each tax sale. The minimum bid is at least what it would take to redeem, plus costs, and the owner can redeem until the close of business on the last business day before the sale starts. If the sale brings in more than that, lienholders and the former owner can claim the excess within a year after the tax deed is recorded.

Following California filings

The good news is the long lead time: a notice of default comes months before any sale. The hard part is that each of California's 58 county recorders indexes documents its own way, and many sales move more than once. Our guide to following a county covers how people keep up.

General information, not legal advice. For your own situation, talk to a lawyer.