Understanding the Foreclosure Process
If you’ve fallen behind on your mortgage payments, you may be worried about how long it takes before a foreclosure actually happens. Understanding the foreclosure timeline in California can help homeowners make better decisions and explore options before losing their property.
California uses a non-judicial foreclosure process, which means lenders typically do not need to go through the court system to foreclose on a home.
Because of this, the foreclosure process can move relatively quickly if no action is taken.
Step 1: Missed Mortgage Payments
The foreclosure process usually begins after a homeowner falls behind on mortgage payments.
Most lenders will attempt to contact the homeowner and offer options such as:
- repayment plans
- loan modifications
- temporary forbearance
However, if payments remain unpaid, the lender may move forward with foreclosure.
Step 2: Notice of Default (NOD)
After about 90 days of missed payments, the lender may file a Notice of Default (NOD) with the county recorder.
The Notice of Default officially starts the foreclosure process.
Once the NOD is recorded, homeowners typically have at least 90 days to catch up on missed payments and reinstate the loan.
Step 3: Notice of Trustee Sale
If the mortgage is not brought current during the reinstatement period, the lender may issue a Notice of Trustee Sale.
This notice schedules the foreclosure auction and must be posted publicly and sent to the homeowner.
The sale date must be at least 21 days after the Notice of Trustee Sale is issued.
Step 4: Foreclosure Auction
If the property is not sold or the loan is not paid off before the auction date, the home may be sold at a public foreclosure auction.
At this stage, ownership of the property transfers to the highest bidder or back to the lender.
Options Before Foreclosure Happens
Many homeowners believe that once foreclosure starts, they have no options. In reality, several options may still exist before the foreclosure sale takes place.
These options may include:
- catching up on missed payments
- negotiating with the lender
- selling the property
- working with a buyer who can purchase the house quickly
Taking action earlier in the process often provides the most flexibility.
Selling Your House Before Foreclosure
Some homeowners decide that selling the property is the best solution before the foreclosure process continues.
Selling the house may help homeowners:
- avoid foreclosure on their credit report
- pay off the remaining mortgage balance
- move forward financially
Even if a home needs repairs or updates, selling may still be possible.
Get Help Exploring Your Options
If you’re facing foreclosure and trying to understand your options, it may help to speak with someone experienced in working with distressed homeowners.
At Blue & Gold Homes, we work with homeowners across California who need to sell their houses quickly due to foreclosure, inherited property, or other life situations.
We may be able to make a fair cash offer and help simplify the process.
Fill out the form below to learn more about your options.
If your exploring other ways to sell your house in California check out these other resources