Pre-Foreclosure in California: Notice of Default, Your Rights and Your Options

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Behind on your mortgage? Know your rights and your options

This guide explains California’s notice of default process, the timelines in the Civil Code, the Homeowner Bill of Rights and the options from reinstatement to a sale before the auction.

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Last updated November 13, 2026. Reviewed by the Cash Home Buyers CA team.

Pre-foreclosure at a glance

What it is	The stage after your lender or servicer records a notice of default and before a trustee’s sale
Governing law	California Civil Code sections 2923.5 through 2924.20, including the Homeowner Bill of Rights
Contact before filing	The servicer must contact you at least 30 days before recording a notice of default (Civ. Code 2923.5)
Notice of sale	Must be given at least 20 days before the sale date (Civ. Code 2924f)
Reinstatement deadline	Up to five business days before the sale date (Civ. Code 2924c)
Who is covered	First-lien loans on owner-occupied homes of one to four units (Civ. Code 2924.15)
Our related guide	California foreclosure timeline guide

What a notice of default means

A notice of default is a recorded public document that tells you the lender says you are behind and starts California’s non-judicial foreclosure process on a deed of trust. It is not a sale.

It opens a window in which you can catch up, change the loan, sell the home or lose it at auction. Most of the choices below are cheaper and less damaging the earlier you act, so reading the notice and calling the servicer promptly matters more than any single tactic.

The notice normally lists the amount said to be past due and how to find out what it takes to cure the default. Keep the original, write down the date it was recorded, and ask the servicer for a written reinstatement figure.

If anything in it looks wrong, such as the wrong borrower, the wrong amount or a loan you have never heard of, ask for documentation in writing before you pay or sign anything.

What must happen before the notice is recorded

Under Civil Code section 2923.5, a mortgage servicer must contact the borrower in person or by phone to assess the financial situation and explore ways to avoid foreclosure, and must wait 30 days after that contact, or after meeting the law’s due-diligence requirements, before recording the notice of default.

In the first contact the servicer must tell you that you can ask for a follow-up meeting, which is to take place within 14 days, and give you the toll-free HUD number for finding a HUD-certified housing counselor.

It must also tell you that a family member, counselor or attorney can record a request to receive copies of the default and sale notices.

The California Attorney General’s office describes these protections as part of the California Homeowner Bill of Rights, which took effect on January 1, 2013, with several sections renewed and changed as of January 1, 2019. The Bill of Rights covers first-lien mortgages and deeds of trust on owner-occupied homes with no more than four units, so a rental property or second home may not get the same protections.

Timeline once the notice is recorded

Notice of default recorded	Starts the clock. The servicer generally must send options information within five days, according to the Attorney General’s office.
About three months	A notice of sale may be recorded up to five days before the three-month period after the notice of default runs out (Civ. Code 2924(a)(4)).
At least 20 days before sale	Notice of sale must be given in the manner and for the time set in section 2924f, which is at least 20 days before the sale.
Up to five business days before sale	The last day to reinstate by paying what is past due plus allowed costs (Civ. Code 2924c).
Trustee’s sale	The auction. After it, the right to cure is gone.

These are statutory minimums, not predictions. Sales get postponed, loan modifications get approved and servicers have their own internal timelines, so your real dates are in the documents you receive. For a fuller walk-through of each step, see our California foreclosure timeline guide.

Dual tracking is restricted

Dual tracking means the servicer pursues foreclosure while it is still reviewing your request for help. California limits it.

Under section 2923.6, if you have submitted a complete first-lien loan modification application, the servicer may not record a notice of default or notice of sale, or hold a trustee’s sale, while it is pending, subject to conditions such as the application arriving at least five business days before a scheduled sale.

The same section covers set periods for appealing a denial. Section 2924.11 adds that a servicer may not move forward when a foreclosure-prevention alternative has been approved and you are meeting its terms, and it bars certain fees and late charges during review.

The practical lesson is to submit a complete application, in writing, with every document the servicer asks for, and to keep proof of delivery. An incomplete package may not trigger the protection.

Your main options at this stage

Reinstate. Pay the past-due amount and allowed costs by the deadline. This ends the default and the loan continues.
Loan modification, forbearance or repayment plan. Ask the servicer which options your loan qualifies for and apply under the Bill of Rights process.
Short sale or deed in lieu. If you owe more than the home is worth, the lender may accept a sale for less or take the deed. See our short sale and deed in lieu guide.
Sell the home yourself before the auction. If you have equity, a sale can pay off the loan and let you keep what is left. A cash buyer can close faster than a listing, which matters when a sale date is set.
Bankruptcy. A filing can pause a foreclosure and may protect equity. Read our homestead exemption guide and talk to a bankruptcy attorney.
Do nothing. Once the trustee’s sale happens the right to cure is gone, and you lose the chance to choose how and when the home is sold.

How selling before the auction works

If you have equity, selling before the trustee’s sale lets you control the price and the closing date. The title company obtains a payoff figure from the servicer, pays the loan and any recorded liens from the proceeds and sends you the balance.

Ask the servicer how a sale date interacts with their processes, and ask the title company how many days it needs to close.

A traditional listing can take longer than the time you have, which is why owners facing a sale date often compare it with a cash offer that can close on a date you choose.

Our page on selling a house in foreclosure explains how that works, and the seller closing costs guide shows what comes out of proceeds.

Taxes can still apply to a sale. If you have a gain, see our capital gains guide. If you are considering a short sale or deed in lieu, ask a tax professional about forgiven debt before you sign.

Free help and scams to avoid

The servicer must give you the toll-free number for HUD-certified housing counselors, and counseling is generally available at no cost.

The California Courts Self-Help Guide lists foreclosure prevention and mortgage help resources, and the Attorney General’s site explains the Homeowner Bill of Rights and warns about loan modification and foreclosure rescue scams.

Be wary of anyone who asks for an upfront fee, tells you to stop talking to your lender or asks you to sign over the deed.

Common mistakes

Ignoring mail from the servicer or the trustee because opening it feels bad.
Sending an incomplete modification package, then assuming the protections apply.
Missing the reinstatement cutoff because the sale date was assumed, not checked.
Waiting until the last week to look for a buyer, when closing takes time.
Paying a company up front to “save” the home without checking it against the Attorney General’s scam warnings.

What we could not confirm

We did not read your loan documents, so we cannot say whether your loan is covered by the Homeowner Bill of Rights, whether you are eligible for a modification, or what your reinstatement figure is.

Several details, such as how many days a servicer takes to review an application, depend on the servicer and loan type, and we state none we could not source. Confirm dates and amounts with your servicer, a HUD-certified counselor or a California attorney.

How to sell a house in California before a foreclosure sale

Read the notice of default and note the recording date and amount claimed.
Call the servicer and ask for a written reinstatement figure and the sale date, if any.
Talk to a HUD-certified counselor and, if needed, an attorney.
Compare keeping the loan with selling before the auction.
Request a no-obligation cash offer, choose a closing date and let the title company pay off the loan.

Received a notice of default? Get a cash offer and a closing date that works before the sale.

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Frequently asked questions

What is a notice of default in California?

A recorded document saying the borrower is behind on a deed of trust. It starts the non-judicial foreclosure process but is not the sale itself.

How long do I have after a notice of default?

The law sets minimums. A notice of sale may be recorded up to five days before three months pass after the notice of default, and the sale notice must be given at least 20 days before the sale date (Civil Code 2924 and 2924f). Real timing varies.

Can I stop a foreclosure by paying what I owe?

Yes, you can reinstate the loan by paying the past-due amount and allowed costs up to five business days before the sale date under Civil Code 2924c.

What is dual tracking?

The servicer moving toward foreclosure while it reviews your loan modification request. Civil Code 2923.6 restricts it once you submit a complete first-lien application, subject to conditions.

Does the Homeowner Bill of Rights cover every loan?

No. Civil Code 2924.15 describes first-lien loans on owner-occupied homes with no more than four units.

Can I sell my house after a notice of default?

Yes. You can sell before the trustee’s sale and use the proceeds to pay off the loan. Selling to a cash buyer can be quicker than listing when time is short.

Where can I get free foreclosure counseling?

Servicers must give you the HUD toll-free number for HUD-certified housing counselors, and the California Attorney General and Courts Self-Help Guide list resources.

Is a short sale the same as a deed in lieu?

No. A short sale is a sale to a buyer for less than the debt with lender approval. A deed in lieu transfers the property to the lender. Our guide compares them.

More guides

Sources

This guide is general information from public sources, not legal advice. Confirm current rules and deadlines with your servicer, a HUD-certified counselor or a California attorney.