State Foreclosure Law
California Foreclosure Laws
California has one of the most complex foreclosure regulatory frameworks in the country. The state is primarily non-judicial (deed of trust power of sale under Civil Code 2924-2924k) but also allows judicial foreclosure.
Research depth: Standard · Last reviewed March 4, 2026 · Awaiting attorney validation
30 cited
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13 gaps
Not legal advice. This page provides general information about California foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — always confirm current statute text and consult a California-licensed attorney for advice specific to your situation.
Governing Statutes
| Citation | Title | Covers |
|---|---|---|
| Cal. Civ. Code 2924-2924k | Non-Judicial Foreclosure (Comprehensive Foreclosure Reform) | Non-judicial foreclosure process, notice of default, notice of sale, trustee sale procedures, surplus funds, borrower contact requirements, HBOR provisions, AB 2424 protections |
| Cal. Civ. Code 2923.4-2924.19 | California Homeowner Bill of Rights (HBOR) | Dual-tracking prohibition, single point of contact, verified written authority, loss mitigation evaluation requirements, private right of action for violations |
| CCP 725a-730a | Judicial Foreclosure | Judicial foreclosure process for mortgages and deeds of trust, court-ordered sale, deficiency judgment procedures |
| CCP 580b | Anti-Deficiency: Purchase Money Loans | Prohibits deficiency judgments on purchase money loans secured by 1-4 unit owner-occupied property, including refinances of purchase money loans after January 1, 2013 |
| CCP 580d | Anti-Deficiency: Non-Judicial Foreclosure | Prohibits deficiency judgments after non-judicial foreclosure (trustee sale) and after deed-in-lieu of foreclosure |
| CCP 726 | One-Action Rule / Security-First Rule | Requires creditor secured by real property to exhaust security before pursuing personal judgment; one form of action for recovery of debt secured by real property |
| Cal. Civ. Code 2923.5 | Pre-Foreclosure Contact Requirement | Requires mortgage servicer to contact borrower 30 days before filing notice of default to explore alternatives to foreclosure |
| Cal. Civ. Code 1695-1695.17 | Home Equity Sales Contract Act | Foreclosure rescue fraud protections, equity purchaser requirements, right of rescission |
| CCP 704.730 | Homestead Exemption | Automatic homestead exemption based on county median home sale price, with inflation adjustments |
Non-Judicial Foreclosure Process
Awaiting verificationCal. Civ. Code 2924 requires strict compliance with notice, timing, and procedural obligations.
1
Pre-Foreclosure Borrower Contact (30-Day Requirement)
At least 30 days before recording the notice of default
Before recording a notice of default, the mortgage servicer, mortgagee, or beneficiary must contact the borrower in person or by telephone to assess the borrower's financial situation and explore options for avoiding foreclosure. The servicer must advise the borrower about available loss mitigation options, including loan modification, and provide the toll-free HUD counseling number. If the borrower cannot be reached after 'due diligence,' the servicer must satisfy the contact requirement by sending a first-class letter that includes loss mitigation options and HUD counselor information. A declaration of compliance with this section must be included with the notice of default when it is recorded.
§
Defense opportunity: Failure to comply with the contact requirement is a defense to foreclosure. Borrower can challenge the notice of default if the servicer did not exercise due diligence in making contact or did not include the required declaration of compliance.
2
Notice of Default (NOD) — Recording and Mailing
After borrower contact requirement is satisfied; starts the 3-month reinstatement period
The foreclosure formally begins when the trustee, mortgagee, or beneficiary records a notice of default and election to sell with the county recorder in the county where the property is located. Within 10 business days of recording, the trustee must mail a copy to the borrower and to anyone who has recorded a request for notice. Within one month after recording, a copy must be mailed to all parties with recorded interests junior to the deed of trust. The NOD triggers a 3-month reinstatement period.
§
Defense opportunity: Borrower has 3 months to cure the default (reinstate the loan). The borrower can also submit a complete application for a first-lien loan modification during this period, which under HBOR triggers dual-tracking protections prohibiting the servicer from recording a notice of sale while the application is pending.
3
Three-Month Reinstatement Period
3 months (approximately 90 days) from the date of recording of the NOD
The borrower has at least 3 months from the recording of the NOD to cure the default by paying all amounts past due, plus allowable fees and costs. During this period, the servicer must evaluate any complete loss mitigation application submitted by the borrower under HBOR. The notice of sale cannot be recorded until at least 3 months after the NOD is recorded.
§
Defense opportunity: Borrower can reinstate the loan by paying the past-due amount plus costs. Borrower can also apply for loan modification; under HBOR, if the servicer receives a complete first-lien loan modification application, the servicer cannot record a notice of sale, conduct a trustee sale, or proceed with any foreclosure action while the application is pending.
4
Notice of Trustee Sale (NTS) — Recording, Mailing, Posting, Publishing
At least 20 days before the trustee sale date; cannot be recorded until at least 3 months after NOD recording (NTS can be recorded up to 5 days before the reinstatement period ends)
After the 3-month reinstatement period expires (and only if the borrower has not cured or if no complete loan modification application is pending), the trustee records a notice of trustee sale. The notice must be: (1) mailed by registered or certified mail and first-class mail to the borrower at least 20 days before the sale; (2) posted on the property at least 20 days before the sale; (3) posted in a public place in the city where the property is located; and (4) published once a week for 3 consecutive weeks in a newspaper of general circulation, with the first publication at least 20 days before the sale. Under AB 2424 (2025), the notice must also include the fair market value of the property.
§
Defense opportunity: Any defect in notice content, timing, mailing, posting, or publication is grounds to challenge the sale. Borrower may seek a temporary restraining order (TRO) in superior court to enjoin the sale. Under AB 2424 (effective January 1, 2025), if the borrower submits a listing agreement with a licensed broker at least 5 business days before the sale, the trustee must postpone the sale for at least 45 days.
5
AB 2424 Postponement Rights (if triggered)
Listing agreement: at least 5 business days before scheduled sale; Purchase agreement: at least 5 business days before rescheduled sale
Under AB 2424 (effective January 1, 2025), the borrower has two separate postponement rights: (1) Listing Agreement Postponement — if the borrower submits a listing agreement with a licensed California real estate broker at least 5 business days before the scheduled sale, the trustee must postpone the sale for at least 45 days; (2) Purchase Agreement Postponement — 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. These postponements can add up to 90 days to the foreclosure timeline.
§
Defense opportunity: Provides borrowers with up to 90 additional days to sell the property on the open market and avoid losing equity at a foreclosure auction.
6
Trustee Sale (Public Auction)
At least 20 days after the NTS is posted/published/mailed; at least approximately 110 days total from NOD recording (3 months + 20 days minimum). With AB 2424 postponements, could be 200+ days.
The property is sold at a public auction conducted by the trustee at the time, date, and place specified in the notice of sale. Under AB 2424 (effective January 1, 2025), the trustee cannot sell the property at the initial trustee sale for less than 67% of the fair market value. If no bid meets the 67% threshold (or the opening bid), the sale is postponed for at least 7 days and may then be sold to the highest bidder without the 67% floor. The beneficiary may credit bid up to the amount owed. The sale must occur between 9:00 AM and 5:00 PM on a business day. After the sale, the trustee executes and records a trustee's deed upon sale.
§
Defense opportunity: Borrower's right to reinstate the loan ends 5 business days before the sale (Cal. Civ. Code 2924c). Under SB 1079/AB 1837, certain 'eligible bidders' (owner-occupants, tenants, nonprofits, community land trusts, public entities) have a 45-day post-sale right to match the winning bid for 1-4 unit residential properties.
7
SB 1079/AB 1837 Eligible Bidder Period (Post-Sale)
45 days after the trustee sale
Under SB 1079 (2020) as amended by AB 1837 (2022, extended to 2031), after a trustee sale of a 1-4 unit residential property, certain 'eligible bidders' have 45 days to submit a bid matching or exceeding the last and highest bid at the sale. Eligible bidders include: prospective owner-occupants, tenants of the property, nonprofit affordable housing organizations, community land trusts, and public entities. If an eligible bidder matches the price within 45 days, the trustee must sell to the eligible bidder instead of the auction purchaser (with a priority order among eligible bidders). Properties purchased by eligible bidders under the nonprofit/community land trust categories must be maintained as affordable housing for 30 years.
§
Defense opportunity: Eligible bidders (tenants, prospective owner-occupants, nonprofits, community land trusts, public entities) can exercise this right to acquire the property at the auction price rather than losing it to investors.
Judicial Foreclosure Process
Awaiting verification1
Filing Complaint for Judicial Foreclosure
After default occurs
Lender files a complaint for judicial foreclosure in the superior court of the county where the property is located. The complaint must describe the mortgage or deed of trust, the default, the amount owed, and request a decree of sale. Because of the one-action rule (CCP 726), the lender must exhaust the real property security in this single action.
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Defense opportunity: Borrower can file an answer raising defenses including standing, statute of limitations, improper acceleration, servicing violations (RESPA, TILA), HBOR violations, anti-deficiency protections, and CPA claims under Cal. Bus. & Prof. Code 17200.
2
Service of Summons and Complaint
After filing
The borrower must be personally served with the summons and complaint. All parties with recorded interests in the property must also be joined or served. If personal service fails, service by publication may be authorized by court order.
§
Defense opportunity: Improper service can be challenged by motion to quash service of summons.
3
Answer Period
30 days after service of summons and complaint
The borrower has 30 days after service to file a responsive pleading (answer or demurrer). Failure to respond may result in a default judgment.
§
Defense opportunity: File answer, demurrer, and/or cross-complaint. Affirmative defenses include HBOR violations, RESPA violations, TILA rescission, usury, unconscionability, unclean hands, laches, and statute of limitations.
4
Judgment and Decree of Foreclosure
After trial or summary judgment; varies by court docket (typically 6-18 months)
If the court rules in the lender's favor (by summary judgment, trial, or default), it issues a judgment and decree of foreclosure ordering the property sold at a court-ordered sale. The court determines the amount owed and orders the sale.
§
Defense opportunity: Challenge summary judgment; argue genuine issues of material fact require trial. If property is sold at court-ordered sale, the lender may seek a deficiency judgment (subject to CCP 580b purchase money limitations and CCP 726(b) fair value limitations).
5
Court-Ordered Sale (Commissioner's or Sheriff's Sale)
After judgment; notice requirements apply
The property is sold at a court-ordered sale conducted by a court-appointed commissioner or the sheriff. Sale procedures follow CCP 716.010-716.030. Notice must be given by publication and posting. The sale is subject to court confirmation.
§
Defense opportunity: Challenge sale procedures. Court confirmation is required, and the borrower may object to confirmation. Statutory right of redemption applies after judicial sale — 3 months if lender waives deficiency, 1 year otherwise (CCP 729.010-729.090).
Homeowner Protections
Awaiting verificationHomestead Exemption
The greater of: (1) the countywide median sale price for a single-family home in the calendar year prior to when the exemption is claimed, not to exceed the statutory cap, or (2) the statutory floor. Base amounts (AB 1885, effective January 1, 2021): floor $300,000, cap $600,000. These amounts are adjusted annually for inflation based on the California Consumer Price Index. For 2026, estimated inflation-adjusted amounts are approximately: floor $371,547, cap $743,459.
§
Automatic — no filing required. Does not protect against foreclosure by the mortgage holder (only judgment creditors).
Deficiency Judgment
purchase_money_exempt
§
California has extremely strong anti-deficiency protections through multiple interlocking statutes: (1) CCP 580b prohibits deficiency judgments on purchase money loans secured by 1-4 unit owner-occupied property — this includes original purchase money loans AND refinances of purchase money loans if the refinance was taken out after January 1, 2013 (SB 1069, 2012 amendment). CCP 580b also bars deficiency on seller-financed loans.
Right of Redemption
Non-judicial trustee sale: NO post-sale redemption right.
§
Pre-sale reinstatement available. Non-judicial: up to 5 business days before the trustee sale via reinstatement (Cal.
Right to Cure
Three months from the date the Notice of Default is recorded
§
All amounts in default under the terms of the deed of trust or mortgage, plus costs and fees incurred by the trustee and beneficiary that are authorized by the deed of trust, including the trustee's or attorney's fees actually incurred (not to exceed the amount specified in the deed of trust or note)
Mediation
California does not have a mandatory statewide foreclosure mediation program. Federal loss mitigation requirements under CFPB Regulation X still apply to all servicers.
Free Legal Resources in California
- Legal Aid Foundation of Los Angeles (LAFLA)One of the largest legal aid organizations in the country. Provides comprehensive foreclosure defense, including representation in court proceedings, loan modification negotiations, and servicer abuse claims.lafla.org →
- Neighborhood Legal Services of Los Angeles County (NLSLA)Provides legal services to prevent unlawful foreclosures, including advice, representation, and advocacy.nlsla.org →
- Bay Area Legal AidServes seven Bay Area counties with housing-related legal services including foreclosure prevention.baylegal.org →
- Legal Services of Northern CaliforniaProvides free legal assistance to low-income residents in Northern California, including foreclosure defense and housing preservation.lsnc.net →
- California Rural Legal Assistance (CRLA)Serves rural California communities with legal services including housing, foreclosure prevention, and consumer protection.crla.org →
- Inland Counties Legal Services (ICLS)Provides free legal services to low-income residents of the Inland Empire, including foreclosure defense.inlandlegal.org →
- Legal Aid Society of San DiegoProvides free civil legal services to low-income San Diego County residents, including foreclosure prevention and housing.lassd.org →
- Community Legal Aid SoCalProvides free legal assistance to low-income individuals in Orange County and surrounding areas.communitylegalsocal.org →
- HUD-Approved Housing CounselorsFree, federally funded housing counseling agencies in California. Can help with loan modification applications, mediation preparation, and understanding your options.Find a counselor in California →
- California Mortgage Relief Program HotlineThe California Mortgage Relief Program is no longer accepting applications. Callers will be directed to HUD counseling and other resources.1-888-840-2594 →
- HUD Housing Counseling HotlineNational HUD-approved housing counseling referral line. Connects callers with local HUD-certified counselors for free foreclosure prevention counseling.1-800-569-4287 →
- CalHFA General InformationCalifornia Housing Finance Agency general information line for homeownership programs, CalAssist disaster relief, and housing finance questions.1-877-922-5432 →
- DFPI Consumer ServicesCalifornia Department of Financial Protection and Innovation consumer complaint and information line. Can assist with complaints against mortgage servicers, lenders, and PACE providers.1-866-275-2677 →
- State Bar of California — Find a LawyerThe State Bar operates a Lawyer Referral Service (LRS) certification program but does not run its own direct referral service. Certified LRS programs typically charge $35-$50 for an initial 30-minute consultation. Many county bar associations operate certified LRS programs.calbar.ca.gov/public/find-legal-professionals →
- Public CounselThe nation's largest pro bono law firm. Provides free legal representation in foreclosure defense, consumer protection, and housing matters.publiccounsel.org →
- Bet Tzedek Legal ServicesProvides free legal services focused on preventing homelessness, including foreclosure defense and elder law.bettzedek.org →
- Justice & Diversity Center of The Bar Association of San FranciscoProvides pro bono legal services including housing and foreclosure matters through volunteer attorneys.sfbar.org/jdc →
Find Help in California
We maintain a verified directory of free and low-cost help providers in California. All are government-approved or federally funded.
National Foreclosure Guides
These guides explain foreclosure at the federal level — your rights, your options, and what to do at each stage. They apply in every state, including California.
Facing Foreclosure?
Overview of the process, your options, and where to get free help
How to Stop Foreclosure
Steps you can take today — forbearance, modification, legal aid, bankruptcy
Your Rights in Foreclosure
Federal protections under CFPB Regulation X and loss mitigation rules
How Foreclosure Works
Stage-by-stage walkthrough from missed payments to sale
Behind on Your Mortgage?
What to do if you've missed a payment or know you'll miss one soon
Bankruptcy & Foreclosure
How Chapter 7 and Chapter 13 can stop or delay foreclosure
California Distress Data
The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to California homeowners:
Foreclosure Filings
National trend
California is a non-judicial state — filings reflect trustee's sales, not court actions.
The FHA Signal
FHA delinquency rate
FHA serious delinquency rate — the canary in the coal mine for borrowers with thin down payments.
The Pipeline
Foreclosure starts & completions
Monthly foreclosure starts and completions from CoreLogic — the volume flowing through the system.
First Missed
Early-stage transitions
Borrowers transitioning from current to 30-days late — the earliest warning signal before delinquency rises.
See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026
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If you're facing foreclosure in California, free help is available right now. Call the California Mortgage Relief Program Hotline at 1-888-840-2594 or find a HUD-approved housing counselor near you at no cost.