Your Complete Guide to Understanding California's Foreclosure Process
⚠️ PHASE 1: NOTICE OF DEFAULT (Days 1-90)
What This Means:
You've missed 3-4 mortgage payments and your lender has filed a Notice of Default with the county recorder. This officially starts the foreclosure process in California.
✅ IMMEDIATE ACTIONS (Days 1-30):
□ Contact your mortgage servicer immediately
□ Request loss mitigation options
□ Gather financial documents (pay stubs, bank statements, tax returns)
□ Calculate total amount owed (principal, interest, fees)
□ Explore loan modification programs
□ Consider contacting a HUD-approved counselor
□ Review your mortgage documents and note
✅ CONTINUE EFFORTS (Days 30-60):
□ Submit completed loss mitigation application
□ Follow up weekly with your servicer
□ Explore state and local assistance programs
□ Consider consulting with a foreclosure attorney
□ Document all communications with your lender
□ Research comparable property values in your area
✅ PREPARE FOR NEXT PHASE (Days 60-90):
□ If modification denied, request appeal or review
□ Consider short sale if you can't afford payments
□ Explore deed in lieu of foreclosure
□ Prepare for Notice of Trustee Sale
□ Continue making any payments you can
⏰ PHASE 2: NOTICE OF TRUSTEE SALE (Days 91-110)
What This Means:
Your lender has scheduled your home for auction. You'll receive a Notice of Trustee Sale at least 20 days before the auction date. This notice is also published in local newspapers and posted on your property.
✅ URGENT ACTIONS (Days 91-100):
□ Verify the auction date, time, and location
□ Calculate the total amount needed to reinstate your loan
□ Contact your servicer about reinstatement options
□ Consider emergency loan modification filing
□ Explore bankruptcy protection (automatic stay)
□ Research cash buyers or investors
□ Prepare for possible quick sale
✅ FINAL WEEK ACTIONS (Days 100-110):
□ Make final reinstatement attempt
□ File bankruptcy if appropriate (stops auction)
□ Negotiate cash-for-keys agreement
□ Prepare to vacate if necessary
□ Document any lender procedural violations
□ Secure important documents and belongings
🚨 PHASE 3: FORECLOSURE AUCTION (Day 111+)
What This Means:
Your home is sold at public auction to the highest bidder. If no one bids more than the lender's opening bid, the lender becomes the owner (REO - Real Estate Owned).
✅ AUCTION DAY OPTIONS:
□ Last-minute reinstatement (if funds available)
□ Emergency bankruptcy filing (may stop sale)
□ Attend auction to understand the process
□ Prepare for post-auction procedures
✅ POST-AUCTION (If Sale Occurs):
□ You have 3 days to vacate the property
□ Negotiate with new owner for more time
□ Remove all personal belongings
□ Forward mail to new address
□ Consider cash-for-keys with new owner
□ Document any remaining rights or claims
💡 IMPORTANT CALIFORNIA-SPECIFIC INFORMATION
Your Rights Under California Law:
Right to Reinstate: You can stop foreclosure by paying all missed payments plus fees until 5 business days before the auction
Right to Notice: You must receive proper legal notices at each phase
Right to Request Information: Your servicer must provide payoff amounts and loss mitigation options
Right to Legal Representation: You can hire an attorney at any point in the process
Dual Tracking Protection: Lenders cannot pursue foreclosure while reviewing your modification application
Common California Foreclosure Delays:
Processing loss mitigation applications (30-90 days)
Lender backlogs during high-volume periods
Legal challenges to improper procedures
Bankruptcy filings (automatic stay)
Court-ordered mediation programs
🆘 NEED IMMEDIATE HELP?
Call or Text: (949) 328-4811
Email: help@myforeclosuresolution.com
Free consultation available 7 days a week
We respond to urgent situations within 2 hours
📞 EMERGENCY CONTACT LIST
Essential Phone Numbers:
Your Mortgage Servicer: ___________________________
Loss Mitigation Dept: ____________________________
HUD Counseling: 1-888-995-4673
California Housing Finance Agency: 1-877-922-4432
My Foreclosure Solution: (949) 328-4811
Legal Aid Society: Contact your local chapter
Bankruptcy Attorney: ____________________________
📝 DOCUMENT CHECKLIST
✅ GATHER THESE DOCUMENTS:
□ Original mortgage note and deed of trust
□ All notices received from your lender
□ Payment history and account statements
□ Recent pay stubs (2-3 months)
□ Bank statements (2-3 months)
□ Tax returns (2 years)
□ Financial hardship letter
□ Property tax statements
□ Insurance information
□ Documentation of income/expense changes
DISCLAIMER: This checklist is for informational purposes only and does not constitute legal advice. California foreclosure laws are complex and can change. Every situation is unique. Please consult with a qualified attorney or HUD-approved counselor for advice specific to your circumstances. Time is critical in foreclosure situations - don't delay in seeking professional help.