How the foreclosure clock works in California
Most Bay Area home loans are deeds of trust, so foreclosure usually happens outside of court. The lender's trustee records a notice of default. At least three months later the trustee can record a notice of trustee sale, and that notice has to go out at least 20 days before the auction. The timing rules are in California Civil Code section 2924.
Sale dates get postponed a lot. Don't plan around that. Until five business days before the sale you can generally bring the loan current by paying what's past due plus the fees. After that, the ways out are paying off the loan in full, a sale that closes first, or a bankruptcy filing, which is a question for a lawyer.
Why your equity matters more than the missed payments
Plenty of Bay Area owners who fall behind still have real equity, because prices here have climbed for decades. At a trustee sale, that equity is exposed. Bids can come in low, and the trustee's fees and costs get added to what you owe. When you sell first, the title company pays the lender out of the sale price and the rest goes to you.
What a cash sale looks like on a foreclosure timeline
- Call with the address and the sale date, if one is set. The date is on the notice of trustee sale.
- One walkthrough, usually within a few days. No repairs and no cleaning.
- A written offer. Escrow orders a payoff demand from your lender so everyone works from the exact number.
- Close before the auction. If the date is tight, the title company can ask the trustee to postpone. They sometimes agree when a sale is already in escrow, but it isn't guaranteed.
Talk to a housing counselor, too
HUD-approved housing counselors are free, and they can tell you whether a loan modification, forbearance or a repayment plan is realistic for you. If one of those works, you may not need to sell. If none does, you'll know the sale is the right call. You can find a counselor through HUD, and the CFPB's explainer on how foreclosure works is a good ten-minute read.
Be careful with anyone who wants money up front to save your house. Companies selling foreclosure rescue or loan modification help generally can't charge you until you have a written offer from your lender that you accept. A legitimate cash buyer doesn't charge you anything to make an offer.