California Civil Code section 2924 governs how a lender forecloses on real property in California without going to court, using the power-of-sale clause in a deed of trust. The statute lays out a sequence of contacts, notices, waiting periods, and publication steps that together take at least seven to eight months from first required outreach to the trustee’s auction. Miss a step and the sale can be undone. Understanding the sequence tells you where you can still reinstate the loan, apply for a modification, or force the lender to start over.
What Has to Happen Before Any Foreclosure Paperwork Is Filed
Two separate rule sets apply before a lender can record the first foreclosure document.
Under Civil Code section 2923.5, the mortgage servicer must contact you by phone or in person to discuss your financial situation and the options for avoiding foreclosure. In that conversation, the servicer must tell you that you can request a follow-up meeting within 14 days, and must give you HUD’s toll-free number for a certified housing counselor. You can designate a counselor, attorney, or other advisor to speak with the servicer for you.1California Legislative Information. California Code CIV 2923.5
The lender cannot record a Notice of Default until at least 30 days after that initial contact, or 30 days after completing due diligence to reach you if contact was unsuccessful.1California Legislative Information. California Code CIV 2923.5
Federal Regulation X adds a second floor: a servicer cannot make the first notice or filing for a foreclosure until your loan is more than 120 days delinquent.2eCFR. 12 CFR 1024.41 – Loss Mitigation Procedures Federal rules also require the servicer to attempt live contact no later than 36 days after a missed payment and to keep trying every 36 days while you remain delinquent, informing you of available loss mitigation options after making contact.3Consumer Financial Protection Bureau. 1024.39 Early Intervention Requirements for Certain Borrowers
The Notice of Default
The formal process starts when the trustee records a Notice of Default (NOD) in the county recorder’s office where the property is located. The NOD identifies the deed of trust and property, describes the nature of the default, states the beneficiary’s election to sell, and specifies the exact dollar amount needed to cure the default — past-due payments, penalties, and allowable costs.4California Legislative Information. California Code CIV 2924
Within 10 business days of recording, the trustee must mail a copy of the NOD by registered or certified mail to the borrower and to anyone who has filed a recorded request to receive notice.5California Legislative Information. California Code CIV 2924b
Within five business days of the NOD recording, any servicer that offers foreclosure prevention alternatives must send you a separate written notice explaining that you may qualify and how to apply.6California Legislative Information. California Code CIV 2924.9
The Three-Month Wait, Reinstatement, and Redemption
After the NOD is recorded, at least three months must pass before the lender can move to the next step.4California Legislative Information. California Code CIV 2924 This window is where borrowers have the most leverage.
You can reinstate the loan by paying all past-due amounts plus fees and costs that have accrued. You do not have to pay off the full balance. The reinstatement right generally runs until five business days before the scheduled foreclosure sale. If the sale is postponed by more than five business days, the reinstatement right revives and extends until five business days before the new date. Once you reinstate, the default is cured and the loan continues as if nothing happened.
Redemption is different. You can stop the process entirely by paying off the full remaining loan balance plus costs, and that right runs up to the day of the sale itself.7California Courts. Your Rights in a Nonjudicial Foreclosure Once the trustee’s sale is complete, there is no post-sale right of redemption in a California nonjudicial foreclosure.
Loss Mitigation and Dual-Tracking Limits
The Homeowner Bill of Rights adds protections that run alongside the section 2924 timeline. If you apply for a loan modification or other foreclosure prevention option, the servicer must assign you a specific contact person or team who knows your file, can tell you what documents are still needed, and can get you a decision.8California Attorney General. California Homeowner Bill of Rights
The law also restricts “dual tracking.” If you submit a complete first-lien loan modification application at least five business days before a scheduled sale, the servicer cannot record a Notice of Default or Notice of Sale, and cannot conduct a trustee’s sale, until it gives you a written decision.9California Legislative Information. California Code CIV 2924.18 If the servicer denies your application, it must explain why in writing and let you appeal before the foreclosure moves forward.8California Attorney General. California Homeowner Bill of Rights Foreclosure also cannot proceed while you are complying with an approved modification, forbearance, or repayment plan.
The Notice of Trustee’s Sale
Once the three-month waiting period runs, the trustee records and publishes a Notice of Trustee’s Sale (NTS). The NTS can actually be recorded up to five days before the three-month waiting period ends, as long as the auction date is set no earlier than three months and 20 days after the original NOD recording.4California Legislative Information. California Code CIV 2924
Four notice steps must all be completed at least 20 days before the sale:
- Posting in one public place in the city where the property will be sold, or in the county seat if the property is not in a city.
- Posting in a visible spot on the property itself. For single-family homes, that means on a door; if access is blocked by a guard gate or similar barrier, posting at the barrier is sufficient.
- Publication once a week for three consecutive calendar weeks in a newspaper of general circulation in the district where the property is located, with the first publication at least 20 days before the sale.
- Recording the NTS with the county recorder.
The notice must include the total unpaid balance of the obligation, the trustee’s name and address, the original borrower’s name, and a description of the property including its street address and assessor’s parcel number.10California Legislative Information. California Code CIV 2924f
The Auction
The trustee conducts a public auction in the county where the property is located. Bidding runs between 9 a.m. and 5 p.m. on a business day, Monday through Friday, and the property goes to the highest bidder.11California Legislative Information. California Code CIV 2924g
The sale can be postponed by court order, by operation of law (such as a bankruptcy filing), by mutual agreement between borrower and lender, at the trustee’s discretion, or if a force majeure event prevents access to the sale location. Each postponement must be announced by public declaration at the time and place originally scheduled, with the trustee stating the new date, time, and reason. No other form of notice is required.11California Legislative Information. California Code CIV 2924g
Total postponements cannot exceed 365 days from the date originally set in the NTS. If they do, the trustee must start the NTS process over with a new notice that meets all the publication and posting requirements.11California Legislative Information. California Code CIV 2924g
If the property consists of multiple known parcels, they must be sold separately unless the deed of trust says otherwise, and the borrower, if present, can direct the order. Once enough property has sold to satisfy the debt, no additional parcels can be sold.
What Happens After the Sale
No Deficiency Judgment Against the Borrower
If the sale price does not cover what you owe, the lender cannot come after you for the shortfall. California Code of Civil Procedure section 580d prohibits deficiency judgments when property is sold through a power-of-sale foreclosure.12California Legislative Information. California Code CCP 580d The protection covers the borrower. Guarantors and other sureties can still be liable.
No Redemption After the Sale
A California nonjudicial foreclosure gives no right to buy the property back after the auction. Once the trustee issues a Trustee’s Deed Upon Sale, the transfer is final.7California Courts. Your Rights in a Nonjudicial Foreclosure The narrow exception is an HOA foreclosure, where the former owner has 90 days after the sale to pay the amount owed and reclaim ownership.
Eviction Still Requires Court Process
The sale does not remove you from the property automatically. The new owner must serve a three-day written notice to vacate. If you don’t leave, the new owner has to file an unlawful detainer lawsuit. Only after the court issues a writ of possession can the sheriff physically remove you. The new owner cannot change the locks or force you out without going through court.
Tax Consequences
Because California bars deficiency judgments after nonjudicial foreclosure, any shortfall between the sale price and what you owed is typically canceled debt. The IRS treats canceled debt as income. If it is $600 or more, the lender will send you a Form 1099-C.13Internal Revenue Service. About Form 1099-C, Cancellation of Debt
For foreclosures completed through 2025, the Mortgage Forgiveness Debt Relief Act let borrowers exclude up to $750,000 ($375,000 if married filing separately) of forgiven mortgage debt on a principal residence from taxable income. That exclusion expired on December 31, 2025, and as of 2026 forgiven principal residence debt is generally taxable unless Congress extends the provision.14Internal Revenue Service. Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments
Even without that exclusion, you may be able to exclude canceled debt if you were insolvent when the debt was canceled, meaning your total debts exceeded the fair market value of your total assets. You claim the exclusion on IRS Form 982.
If You’re a Tenant in a Foreclosed Property
Section 2924 addresses the borrower, not the tenant. If you rent a home that goes through foreclosure, the federal Protecting Tenants at Foreclosure Act gives you at least 90 days’ written notice before the new owner can start eviction proceedings, and if you have a lease that runs past that 90 days, the new owner generally has to honor it through the remaining term. The exception is a new owner who intends to move in as a primary resident, who can terminate the lease with 90 days’ notice.15Office of the Law Revision Counsel. 12 USC 5220 Note – Protecting Tenants at Foreclosure Act These protections cover bona fide tenancies — arm’s-length rentals in place before the foreclosure notice, not the borrower or a family member paying below-market rent. California and local law, including rent control and just-cause eviction ordinances, may layer on additional protections that survive the sale.
If You’re an Active-Duty Servicemember
Section 2924 also does not override the federal Servicemembers Civil Relief Act. For mortgage obligations you entered into before starting active duty, no foreclosure sale can take place during active duty or within one year afterward unless the lender first obtains a court order.16Office of the Law Revision Counsel. 50 USC 3953 – Mortgages and Trust Deeds A nonjudicial foreclosure conducted without that court order is an SCRA violation and can entitle the servicemember to damages and attorney fees. If a lender files a judicial foreclosure action, the SCRA provides an automatic 90-day stay, and servicemembers can request additional time when deployment makes participation impossible. A default judgment obtained without properly verifying military status can be reopened, potentially undoing the sale.