Foreclosure Timeline in California (Step-by-Step Guide)
Understanding the Foreclosure Process
If you’ve fallen behind on mortgage payments, you may be wondering how long it takes before a foreclosure actually happens. Understanding the foreclosure timeline in California can help homeowners make informed decisions and explore their options before the process goes too far.
California typically uses a non-judicial foreclosure process, meaning lenders do not need to go through the court system to foreclose on a property. Because of this, the process can move fairly quickly if no action is taken.
Step 1: Missed Mortgage Payments
The foreclosure process usually begins when a homeowner falls behind on mortgage payments.
Most lenders will first attempt to contact the homeowner and may offer options such as:
- repayment plans
- loan modifications
- temporary forbearance
If the payments remain unpaid, the lender may begin the foreclosure process.
Step 2: Notice of Default (NOD)
After about 90 days of missed payments, the lender may file a Notice of Default with the county recorder.
The Notice of Default officially starts the foreclosure process in California.
Once the NOD is recorded, homeowners typically have at least 90 days to catch up on missed payments and bring the loan current.
Step 3: Notice of Trustee Sale
If the loan is not brought current during the reinstatement period, the lender may issue a Notice of Trustee Sale.
This notice schedules the foreclosure auction of the property.
The Notice of Trustee Sale must be issued at least 21 days before the scheduled foreclosure sale.
Step 4: Foreclosure Auction
If the homeowner does not resolve the situation before the scheduled sale date, the property may be sold at a public foreclosure auction.
The home may be purchased by a third-party buyer or returned to the lender if no bids are received.
At this stage, ownership of the property transfers to the new buyer.
Options Before Foreclosure Happens
Many homeowners believe they have no options once foreclosure begins. However, there may still be several options available depending on the situation.
Possible options may include:
- catching up on missed payments
- negotiating with the lender
- refinancing the loan
- selling the property before the foreclosure sale
Taking action early in the process usually provides the most flexibility.
Selling a House Before Foreclosure
Some homeowners decide to sell their property before the foreclosure process reaches the auction stage.
Selling the home may allow the homeowner to:
- avoid foreclosure appearing on their credit history
- pay off the remaining mortgage balance
- move forward financially
Even if the property needs repairs, selling may still be possible.
Learn More About Your Options
If you’re dealing with foreclosure and unsure what to do next, it may help to understand all available options before the foreclosure timeline progresses further.
At Blue & Gold Homes, we work with homeowners throughout California who need to sell their houses 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.