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Can I buy a home after a foreclosure auction under SB 1079?

Maybe. A California law known as SB 1079, now Civil Code section 2924m, gives some buyers a short window after a trustee sale of a home with 1 to 4 units. Eligible tenants can match the winning bid, and other eligible bidders, such as people who will live in the home and certain nonprofits, must beat it. The deadlines are short, usually 15 days and at most about 45 days, so you must act fast.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

Who can be an eligible bidder?

The law lists these groups:

  • Eligible tenant buyers who rent the home.
  • Prospective owner-occupants, meaning people who will move in and live there.
  • Certain nonprofits, community land trusts, and limited-equity cooperatives.
  • Certain entities owned by nonprofits, and public entities.

Each group has its own rules and paperwork. Investors who will not live in the home are not on this list.

What does an owner-occupant have to promise?

A prospective owner-occupant generally must sign a statement that they will:

  • Move into the home within 60 days after the trustee's deed is recorded.
  • Live there for at least one year.
  • Meet the law's rules about being independent, which means not secretly acting for someone else.

What about tenants who live there now?

Just living in the home is not enough. Eligible tenant buyers must meet rules about their tenancy, who lives there, their relationship to the owner, and proof. When one representative bids for all eligible tenant buyers, that bid may match the auction's last and highest bid. Every other eligible bidder must beat it.

How do the 15-day and 45-day deadlines work?

  • If a qualified owner-occupant wins at the auction, the normal rules apply. Their signed statement is due at the sale or by 5 p.m. the next business day.
  • If not, the trustee must post information about the auction within 48 hours.
  • If no eligible bidder sends a qualifying bid or notice in time, the sale generally becomes final after 15 days.
  • An eligible bidder who sends a qualifying notice of intent to bid in time can keep their chance open through day 45.
  • These deadlines generally mean the trustee must receive your papers by 5 p.m., with some weekend and holiday changes. A notice you mail before the deadline may not count if it arrives late.
  • The forms you sign, how you deliver them, and how you pay all matter. Ask the trustee what they accept.

Where can I find these sales?

The notice of trustee's sale must explain that eligible tenants may match the winning bid and other eligible bidders may beat it. The trustee's phone number is on that notice. The California Attorney General also keeps a public list of foreclosure sales to eligible bidders: Attorney General residential foreclosure sales list.

Can a former owner use this to get the home back?

Do not count on it. This window is for eligible bidders. It does not give the former owner an extra right to catch up on payments or buy back the home. If you own a home that is facing a sale, act before the auction. Read our sale-date emergency checklist and what happens after the auction.

How do I get ready?

  • Read the notice of sale and write down the sale date, time, place, and the trustee's phone number.
  • Have your money ready before the sale. Ask the trustee which payment forms they take.
  • Get help with the forms early. A licensed real estate attorney can explain your rights.
  • If you rent the home, also read renters in a foreclosed home.

This law is currently set to end on January 1, 2031. Lawmakers can change that date, so check it before you rely on it.

General information, not legal advice. Use the current statute and your notice of sale, not this summary, for exact legal language. Sources: California Civil Code sections 2924c, 2924f(b)(8), 2924h, and 2924m.

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