Facing Foreclosure in California?

This guide separates federal protections from California's non-judicial foreclosure process, then explains notices, options, and help resources. State timeline estimates below run from the first notice to sale. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, its federal servicing rules generally restrict when the first notice or filing can occur in an ordinary delinquency-based foreclosure.

See Your Options Call Free: 1-800-569-4287

Free

81 HUD Counselors in California

Your Information Is Not Sold

20+ Years Experience

Foreclosure Type

Non-Judicial

Usual process; judicial foreclosure is also available

State Timeline After Notice

180 Days

Federal protections apply before this stage

Redemption Period

None

No post-sale buyback

Deficiency Judgment

Limited

Barred for purchase-money loans

Right to Cure

3 Months

Deadline to pay arrears

Mandatory Mediation

Not Required

Federal protections apply

Where are you right now?

I'm behind on payments You've missed one or more mortgage payments but haven't received a foreclosure notice I got a foreclosure notice You received a Notice of Default or a letter about foreclosure proceedings My sale date is soon Your home is scheduled to be sold at auction

California ranks 10th in the nation for financial distress, with a State Distress Index score of 68.8; moderate-high state distress. The state's bankruptcy filing rate is 140 per 100,000 residents. Credit card delinquency stands at 12.5327%. If you're struggling, you're not alone.

Source: California Financial Distress Profile — American Default Research

Most Distressed Counties

County	Score	Score Label
Kern County	75.1	high county distress
Imperial County	75.0	high county distress
Lake County	74.0	high county distress
Merced County	73.9	high county distress
Kings County	72.3	high county distress

8 counties score high, very high, or extreme, with 27 in the moderate score ranges.

See all 58 California counties →

California Foreclosure Timeline

Here's how the foreclosure timeline works in California. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, Regulation X generally bars the first notice or filing in an ordinary delinquency-based foreclosure until the loan is more than 120 days delinquent; § 1024.30 exempts reverse-mortgage transactions and qualified lenders, while § 1024.41(j) keeps small servicers subject to paragraph (f)(1). Section 1024.41 separately permits due-on-sale filings and joining a superior or subordinate lienholder's foreclosure.

Day 1–36

Missed payment. For a delinquent principal-residence mortgage serviced by a servicer subject to 12 C.F.R. § 1024.39, and absent an applicable exception, Regulation X generally requires the servicer to establish or make good-faith efforts to establish live contact no later than the 36th day of delinquency.

Day 37–45

Early-intervention notice. For a delinquent principal-residence mortgage serviced by a servicer subject to 12 C.F.R. § 1024.39, and absent an applicable exception, Regulation X generally requires a written early-intervention notice no later than the 45th day of delinquency; the notice describes examples only if applicable and need not list a particular option.

Ordinary case: Day 45–120

Ordinary pre-foreclosure period. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, Regulation X generally bars a servicer from making the first notice or filing until the loan is more than 120 days delinquent. Section 1024.30 exempts reverse-mortgage transactions and qualified lenders; § 1024.41(j) keeps small servicers subject to paragraph (f)(1). Section 1024.41 separately permits a due-on-sale filing and joining a superior or subordinate lienholder's foreclosure. Use this period to apply for a loan modification or forbearance.

Ordinary case: Day 120+

Foreclosure can begin. If you've received a Notice of Default, you're here. In California, the lender must provide proper notice and follow state-specific publication requirements. You still have options — see what you can do.

Typical: 180 Days

Foreclosure sale. The property is sold at public auction, typically at the county courthouse. The lender often buys it back.

After sale

No post-sale redemption. California does not offer a post-sale redemption period. Once the sale is confirmed, the property transfers to the new owner. This makes it even more important to act before the sale date.

For a personalized timeline based on your last payment date, use our Foreclosure Timeline Calculator.

Your Rights Under California Law

Right to Cure Three months from the date the Notice of Default is recorded. During this period, the borrower may cure the default by paying all amounts past due plus allowable costs and fees. Cal. Civ. Code 2924c

Right to Reinstate Up to 5 business days before the trustee sale date. The reinstatement right under Cal. Cal. Civ. Code 2924c

Dual Tracking Prohibition The California Homeowner Bill of Rights (HBOR), Cal. Civ. Cal. Civ. Code 2923.6; Cal. Civ. Code 2924.10; Cal. Civ. Code 2924.12; Cal. Civ. Code 2924.18

Loss Mitigation Review Under HBOR and Cal. Civ. Cal. Civ. Code 2923.5; Cal. Civ. Code 2923.6; Cal. Civ. Code 2923.7; Cal. Civ. Code 2924.9; Cal. Civ. Code 2924.10; Cal. Civ. Code 2924.17

Pre-Foreclosure Contact In-person or telephone contact; first-class letter as fallback after due diligence efforts Cal. Civ. Code 2923.5

California-Specific Protections

California Homeowner Bill of Rights (HBOR) — Single Point of Contact Cal. Civ. Cal. Civ. Code 2923.7

HBOR — Verified Written Authority (Robo-Signing Prohibition) Cal. Civ. Cal. Civ. Code 2924.17

HBOR — Private Right of Action with Treble Damages Cal. Civ. Cal. Civ. Code 2924.12; Cal. Civ. Code 2924.19

AB 2424 (2025) — Fair Market Value Floor and Postponement Rights Effective January 1, 2025, AB 2424 introduces three key protections: (1) the trustee cannot sell the property at the initial trustee sale for less than 67% of the property's fair market value — if no qualifying bid is received, the sale is postponed at least 7 days; (2) if the borrower submits a listing agreement with a licensed real estate broker at least 5 business days before the sale, the trustee must postpone the sale for at least 45 days; (3) if, after a listing-related postponement, the borrower submits a bona fide purchase agreement at least 5 business days before the rescheduled sale, the trustee must postpone for another 45 days. The beneficiary must provide the trustee with the property's FMV at least 10 days before the initially scheduled sale. Cal. Civ. Code 2924g(c)(3)-(4); Cal. Civ. Code 2924.3 (as amended by AB 2424)

SB 1079/AB 1837 — Community Purchase Protections SB 1079 (2020), as amended by AB 1837 (2022) and extended to January 1, 2031, creates a 45-day post-sale period during which eligible bidders (prospective owner-occupants, tenants, nonprofits, community land trusts, and public entities) can match or exceed the winning bid at a trustee sale of 1-4 unit residential property. Properties purchased by eligible bidders under the nonprofit/CLT categories must maintain 30 years of affordability. Cal. Civ. Code 2924m; Cal. Civ. Code 2924n

Foreclosure Consultant Regulation Cal. Civ. Cal. Civ. Code 2945-2945.11

Dispute Resolution Options in California

Bankruptcy Court Mediation Programs

While California does not have a statewide foreclosure mediation program, several bankruptcy courts offer loss mitigation programs that can help if you file for bankruptcy protection.

Central District of California Loss Mitigation Program Chapter 13 primarily; Chapter 7 by motion Court website

Northern District of California Loss Mitigation Program Chapter 13 primarily Court website

Eastern District of California Loss Mitigation Program Chapter 13 primarily Court website

Southern District of California Loss Mitigation Program Chapter 13 primarily Court website

Your Options in California

Every situation is different, but most California homeowners have more options than they realize. Here are the paths available to you, from keeping your home to making a clean exit.

Can I keep my home?

Yes, if you act early enough. A loan modification permanently changes your mortgage terms to make payments affordable. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, a complete application received more than 37 days before a scheduled sale generally requires evaluation and written notice for available options; the rule does not require the servicer to offer a particular modification.

Forbearance gives you a temporary payment pause. It doesn't erase what you owe, but it buys time if your hardship is short-term. In California, california does not have a state-mandated forbearance statute. Forbearance may be available through: (1) federal programs (FHA, VA, USDA) and applicable CFPB Regulation X provisions, subject to their loan, occupancy, and servicer conditions; (2) voluntary servicer agreements negotiated individually or through HBOR loss mitigation review processes; (3) the CalAssist Mortgage Fund for disaster-impacted homeowners. Reinstatement means paying everything you owe (missed payments plus fees) to bring the loan current.

Filing for Chapter 13 bankruptcy triggers an automatic stay that halts foreclosure immediately. You can catch up on missed payments over 3-5 years while keeping your home. The bankruptcy filing rate in California is 140 per 100,000 residents.

What if I can't keep my home?

Selling before foreclosure gives you control over the process and protects your credit score. A short sale lets you sell for less than you owe with lender approval. A deed in lieu of foreclosure transfers the property directly to the lender.

If you sell through a short sale in California, state law prohibits your lender from pursuing you for the remaining balance. California's anti-deficiency protections extend to short sales in significant ways. CCP 580b; CCP 580e

A deed in lieu of foreclosure in California transfers the property directly to the lender. CCP 580d was amended in 2011 (SB 458) to explicitly prohibit deficiency judgments after a deed-in-lieu of foreclosure on 1-4 unit residential property. CCP 580d (as amended by SB 458, 2011)

A distressed property specialist can help

An agent who works with distressed sellers in California can negotiate with your lender, manage the short sale process, and help you walk away with your credit intact. The earlier you start, the more leverage you have.

Talk to one for free

My sale date is within 30 days

You still have options, but you need to move fast.

File for bankruptcy. A Chapter 13 filing triggers an automatic stay that stops the sale immediately. Talk to a bankruptcy attorney today.

Submit a loss mitigation application. If 12 C.F.R. § 1024.41 applies to your principal-residence mortgage, a complete application received more than 37 days before the sale can trigger evaluation, notice, and sale protections, subject to the rule's timing and conditions.

Call a HUD counselor now. They can contact your servicer on your behalf and may be able to delay the sale. Call 1-800-569-4287.

Financial Assistance in California

California Mortgage Relief Program

Program Closed

Administered by California Housing Finance Agency (CalHFA)

Maximum assistance $80,000 per household

Phone 1-888-840-2594

Apply Program details

This program has distributed all available funds. Contact a HUD counselor at 1-800-569-4287 for other options.

Other California Programs

CalAssist Mortgage Fund

Homeowners whose primary residence was destroyed or severely damaged by a qualified California disaster occurring between January 1, 2023 and January 8, 2025 (including LA firestorms). Must be owner-occupied primary residence.

Visit website 1-877-922-5432

After the Sale in California

Eviction Notice

90 Days

Court order required for removal

Surplus Funds

You can claim

The trustee must send written notice to all persons with recorded interests who had a right to surplus funds within 30 days of the trustee sale (Cal.

Cash for Keys

Commonly offered

No California-specific statute governs cash-for-keys agreements.

90-day written notice to quit for former owners and occupants after trustee sale (CCP 1161a(b)(3); consistent with federal PTFA). For tenants in foreclosed property, 90-day notice under PTFA and CCP 1161a. The federal Protecting Tenants at Foreclosure Act (PTFA) requires at least 90 days' notice for bona fide tenants in any state.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

⚠

Never pay an upfront fee for help. Advance fees for mortgage or debt assistance are illegal in most states. If anyone asks for money before doing anything, walk away.

⚠

HUD-approved foreclosure counseling is always free. Call 1-800-569-4287 or visit the CFPB counselor finder. If someone charges for what HUD counselors do for free, it's a scam.

⚠

Never sign over your deed without an attorney. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title. You could lose your home permanently.

⚠

Your servicer must evaluate you for loss mitigation. Under federal rules (Regulation X), servicers cannot start foreclosure until you're 120+ days delinquent, and must review your application before proceeding. If a company claims only they can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

How It Works

Tell us your situation

Answer a few questions about where you are in the process. Takes 60 seconds.

We review your options

A local professional reviews your situation based on California law and your servicer's track record.

You get a plan

You receive a personalized action plan with next steps. No upfront fees. No obligation.

Foreclosure Timeline Calculator

See exactly when each step of California's foreclosure process happens based on your last payment date.

Hardship Letter Generator

Write a loss mitigation request to your mortgage servicer. Pre-formatted with your situation details.

Get a Free, Confidential Review of Your Options in California

A HUD counselor, attorney, or distressed property specialist in California can review your situation. HUD-approved counseling is available at no cost. Attorney and specialist fees vary.

We store the contact details you submit so we can respond. If you consent to a connection, we share those details with a HUD-approved counselor, legal aid provider, or distressed property specialist who can contact you. We do not sell your information.

Free Resources in California

HUD-Approved Counselors

81 certified agencies in California provide free foreclosure prevention counseling. They can negotiate with your servicer on your behalf.

Find a counselor near you

Legal Aid

Legal Aid Foundation of Los Angeles (LAFLA) provides free legal help to low-income residents facing foreclosure, eviction, and debt collection.

Find legal aid

State Bar of California — Find a Lawyer

The State Bar of California — Find a Lawyer can connect you with a foreclosure defense attorney. Initial consultations are often free or low-cost.

Find an attorney

California Foreclosure Law

Detailed guide to California's foreclosure statutes, homeowner protections, and redemption rights. Every claim cited to its source statute.

Read California foreclosure law

File a Complaint

If your mortgage servicer violates your rights, file a complaint with the California Department of Financial Protection and Innovation or the California Attorney General. You can also file with the Consumer Financial Protection Bureau.

State financial regulator Attorney General CFPB complaint portal

California Housing Finance Agency

Your state housing finance agency administers homeowner assistance programs, foreclosure prevention services, and affordable housing resources.

Visit CalHFA

Frequently Asked Questions

How long can foreclosure take in California?

California uses non-judicial foreclosure. In California, the bank can foreclose in roughly 180 days from the first notice to the sale date — though the actual timeline depends on how you respond and which protections apply. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure.

Can I stop foreclosure once it starts in California?

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Does California allow deficiency judgments?

California limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our California foreclosure law guide for specific details.

Is foreclosure counseling free in California?

Yes. There are 81 HUD-approved counseling agencies in California. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

What is the homestead exemption in California?

California's homestead exemption depends on case-specific factors (county median home prices, family status, or filing posture). Regardless of the amount, the exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies.

What if I have an FHA, VA, or USDA loan in California?

Government-backed loans have additional protections beyond California state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

What happens to tenants if my California home is foreclosed?

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. 5220 note). If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Can I claim surplus funds after a foreclosure sale in California?

Yes. If your California home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. The trustee must send written notice to all persons with recorded interests who had a right to surplus funds within 30 days of the trustee sale (Cal.. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Is the Homeowner Assistance Fund still available in California?

No. The California Mortgage Relief Program has exhausted its funding and is no longer accepting applications. Contact a HUD-approved counselor at 1-800-569-4287 to explore other options.

Can I do a short sale to avoid foreclosure in California?

Yes, and California offers strong protection. State law prohibits deficiency judgments after a short sale, meaning the lender cannot pursue you for the remaining balance. California's anti-deficiency protections extend to short sales in significant ways. You'll need lender approval before the sale closes. Start by contacting your servicer or a HUD-approved counselor.

Written by

Ross Kilburn, Founder

American Default Research · Seattle, Washington

Two decades working directly with financially distressed American households — from property preservation in 2003, to negotiating over 1,000 short sales during the Great Recession, to foreclosure defense marketing today. Author, The Ark Law Group Complete Guide to Short Sales (Auroch Press, 2013). Twice named to Puget Sound Business Journal Fast 50 for Ark Law Group. B.A., University of California, Berkeley, 1992. Founded American Default Research in 2026 to fill a gap in public data that had been empty since 2013.

California Foreclosure Facts