Foreclosure questions and answers

A recorded Notice of Default is an early, formal step in California's nonjudicial foreclosure process. It says what the lender claims you owe. It is not an eviction order. California law generally requires a three-month waiting period after it is recorded before the sale notice stage, with a small early-recording exception. A separate Notice of Sale and other notices come later. Act quickly instead of treating this waiting period as time to put off getting help.

There is no single timeline for every foreclosure. In the usual California process, the earliest a sale can generally happen is three months and 20 days after the Notice of Default is recorded, as long as all other notice rules and protections are met. Many cases take longer, but do not count on an average. For many mortgages, federal law also generally prevents the first foreclosure notice until the loan is more than 120 days behind, with some exceptions. Your recorded notices, your loan, your servicer, and any postponements decide your real dates.

There is no single last-chance deadline. Different options have different rules, and some protections must be in place well before a sale. The right to catch up on missed payments generally ends 5 business days before the scheduled sale. California's loan modification protection and the AB 2424 delays have their own requirements and receipt deadlines. Federal loan modification protections may require acting even earlier, sometimes more than 37 days before a sale. Even in the last 5 business days, paying off the loan, an agreed postponement, a court order, or bankruptcy may sometimes affect the sale, but none is guaranteed. Contact the servicer or trustee and a lawyer right away. Do not wait for the auction, and do not assume that contacting us, sending paperwork, or listing your home stops it.

Usually, if you act in time. If you are behind on payments, you can generally catch up, called reinstating, by paying all amounts that are past due plus allowed costs and fees, until 5 business days before the scheduled trustee sale. Ask the servicer or trustee for a current written breakdown and payment instructions. The amount on an older notice may no longer be enough.

Filing for bankruptcy often creates an automatic stay that pauses a foreclosure for a time, but there are exceptions. Earlier dismissed cases or certain court orders can limit the stay or keep it from starting, and a lender can ask the court for permission to go ahead. If you qualify for Chapter 13, you may be able to catch up on missed payments through a court-approved plan while you keep making your regular payments. Bankruptcy does not guarantee you can keep your home. Talk to a bankruptcy attorney quickly about eligibility, timing, costs, and effects.

Not by itself. A short sale request or a purchase offer does not automatically stop foreclosure. A short sale that closes in time, with the needed approvals, can avoid a foreclosure. For covered loans, California law also gives foreclosure protection once a qualifying alternative is approved in writing by everyone who must approve it and the required proof of funds or financing has been given. Confirm the status with the servicer and trustee. A qualifying short sale completed under the lender's written approval may also keep the lender from collecting the rest of the loan under California law, but approval alone does not erase the debt, and exceptions apply. Get legal and tax advice before you accept the terms.

Possibly. A foreclosure or short sale can have tax effects, including gain on the property and, in some cases, income from canceled debt. Those are two different tax issues. When a home secured by a nonrecourse loan is given up, there is generally no canceled-debt income, though there may still be a gain. The federal break for qualifying debt on your main home generally covers debt canceled before January 1, 2026, or canceled under an arrangement made and put in writing before that date. Limits apply. California generally does not give the same break for debt canceled in 2026. Bankruptcy, insolvency, and other rules may lead to different results. Have a tax professional review your debt, your dates, and any Forms 1099-A or 1099-C.

Yes. The introductory call is free, and you do not have to buy any service. On the call, we can explain our services and fees. It is not legal or tax advice. If you later choose a paid service, you will get the written agreement and required disclosures before going forward.

Warning signs include someone asking for an upfront fee for loan modification or forbearance help, promising a guaranteed result, telling you not to contact your lender, or asking you to sign over your title to save your home. Do not transfer ownership or sign papers you do not understand. California generally prohibits borrower-paid fees for loan modification or forbearance help before every promised service is fully done, and federal law adds more payment conditions. A real estate license does not create an exception to those rules. Check the provider's identity and active license with the right regulator. An NMLS number alone does not prove a service or fee is legal.

Serve First Realty offers remote real estate services and loan modification help to eligible clients throughout California, and Ashlar Lending offers mortgage brokerage services. What is available depends on the service and your situation. Legal document preparation is provided separately by Ashlar LDA, Inc., within its registration and lawful scope. Our free help programs list covers every county.

An inherited home can still go into foreclosure. Serve First Realty can discuss real estate services with a person who has the legal authority to act for the property. Ashlar LDA, Inc. can prepare documents within its lawful scope, using forms you choose and your specific instructions. It cannot decide whether probate is needed, decide who owns the home or has authority, choose forms, or recommend a legal strategy. If you are a confirmed successor in interest, you may have federal mortgage servicing rights; contact the servicer about its confirmation process and talk to a probate or real estate attorney quickly. Inheriting a home or opening probate does not by itself delay a foreclosure.

Yes. Guillermo speaks Spanish, and our whole website is available in Spanish.