California Defaults 101. Notice of Default vs Notice of Trustee’s Sale

California Defaults 101: Notice of Default vs. Notice of Trustee’s Sale

Quick definitions

• Notice of Default (NOD)
• Formally starts the nonjudicial foreclosure timeline after required outreach attempts.4
• Triggers a minimum three‑month waiting period before a sale can be scheduled.5

• Notice of Trustee’s Sale (NOTS)
• Sets the auction date; must be posted, published, and mailed with at least 20 days’ notice.6
• Sale can be postponed, but discretionary postponements are limited by statute unless an exception applies.7

Why California takes longer (and feels more complex)

• Federal 120‑day rule before a foreclosure can start, in most cases. Servicers generally can’t begin foreclosure until you’re more than 120 days delinquent.8

• Pre‑NOD contact and documentation. California law requires the servicer to contact or diligently attempt to contact you to discuss alternatives before recording the NOD.910

• Three‑month NOD wait. After the NOD is recorded, the trustee must wait at least three months before noticing a sale.11

• Strict NOTS rules. The trustee must post and publish the NOTS for at least 20 days before the sale and follow detailed content and location requirements.12

• Dual‑tracking restrictions. If you submit a complete first‑lien modification application at least five business days before a scheduled sale, the servicer generally must pause the sale while it’s reviewed.13

• Postponement rules. Trustees may announce postponements, but repeated discretionary postponements are capped unless an exception like court order or operation of law applies.1415

• Reinstatement cutoff. You typically have a statutory right to reinstate up to five business days before the sale; after that, only full payoff will stop the sale.16

• Redemption rights differ by process. California nonjudicial foreclosures generally do not provide a post‑sale owner redemption period, unlike some judicial foreclosures.1718

Timeline at a glance (minimums, not guarantees)

Your options by stage (and what’s realistic in California)

• Before NOD
• Get current or request hardship alternatives. Start a complete loss‑mitigation package early to avoid dual‑tracking conflicts later.26

• NOD to five business days before sale
• Reinstatement: Pay arrears, fees, and costs to bring the loan current up to five business days pre‑sale.27
• Loan modification or workout: A complete application at least five business days before the sale pauses foreclosure activity while reviewed.28
• List and sell: A well‑documented sale in process can support postponements; you still must meet publication deadlines and closing realities.2930

• Inside five business days of sale
• Reinstatement right generally ends; only full payoff, a documented approved alternative, bankruptcy stay, or court order will stop the sale.3132

Plain‑English FAQs

• How long between the NOD and a sale in California?
• The trustee must wait at least three months after the NOD, then give at least 20 days’ sale notice. In practice, dual‑tracking reviews, postponements, or incomplete documents often make it longer.333435

• Can I stop the sale with a modification application?
• If your first‑lien application is complete and submitted at least five business days before the sale, foreclosure actions generally pause until a written decision issues.36

• When does my right to reinstate end?
• Typically five business days before the sale; after that, servicers aren’t required to accept reinstatement and may require full payoff.37

• Do I get time after the sale to redeem the home?
• Not in most California nonjudicial foreclosures. Post‑sale redemption is usually only available in judicial foreclosures, which are uncommon for owner‑occupied deeds of trust.3839

What to do now

• Confirm your exact dates in writing. Ask your servicer for the NOD recordation date, the earliest NOTS date, and any current sale date.

• Submit a complete, organized package. Missing pages burn valuable time and can undermine dual‑tracking protections.40

• If selling, price for action and build backups. California’s notice and postponement rules reward credible, close‑ready escrows.4142

• Keep everything in writing. Confirm any postponement or approval on letterhead or secure portal.

Sources and statutes

• California Courts Self‑Help: Non‑judicial foreclosure overview and homeowner rights.4344

• Civil Code 2923.5 / 2923.55: Pre‑NOD contact requirements.4546

• Civil Code 2924: Nonjudicial framework and three‑month wait after NOD.47

• Civil Code 2924f: Notice of Trustee’s Sale posting and publication (20‑day minimum).48

• Civil Code 2924g: Sale timing and postponement rules.49

• Civil Code 2924c: Right to reinstate and five‑business‑day cutoff before sale.50

• Civil Code 2924.18: Dual‑tracking prohibitions during complete mod review.51

• Federal 120‑day delinquency rule summarized by Lawyers.com (CFPB servicing rules).52