Notice of Default in California: What Happens After You Receive One

Notice of Default in California: What Happens After You Receive One

A Notice of Default (NOD) is the formal beginning of the California non-judicial foreclosure process. If you have received one, you are not in foreclosure yet — but the clock has started. Understanding exactly what happens next, and how much time you have, is critical to protecting your options.

What Is a Notice of Default?

A Notice of Default is a public document recorded with the county recorder's office by your lender or loan servicer after you fall behind on mortgage payments. California law (Civil Code Section 2924) requires the lender to wait at least 120 days after you miss a payment before recording the NOD — though in practice many lenders wait longer.

The NOD specifies the amount needed to bring the loan current, including missed payments, late fees, and recording costs. It is also mailed to you and to any other parties with an interest in the property.

Your Timeline After a Notice of Default

90-Day Reinstatement Period

After the NOD is recorded, California law gives you a 90-day reinstatement period. During this time, you can stop the foreclosure by paying everything you owe — missed payments, late fees, attorney fees, and foreclosure costs. The lender is required to accept reinstatement during this window.

Notice of Trustee Sale

If you have not reinstated the loan after 90 days, the lender can record a Notice of Trustee Sale (NTS). The NTS sets the date of the public auction — at least 21 days after recording. This is when you lose the right to simply catch up on payments and must either pay off the entire loan balance or sell the property.

Trustee Sale (Auction)

At the trustee sale, the property is auctioned to the highest bidder. If no third party bids above the opening amount, the lender takes title. After this point, you have no right of redemption in California — the sale is final.

What Are Your Options After a Notice of Default?

Reinstate the Loan

If you can come up with the full reinstatement amount during the 90-day period, you can stop the foreclosure entirely. Contact your servicer for the exact reinstatement figure — it changes daily as interest and fees accrue.

Loan Modification

Contact your servicer immediately to explore a loan modification or forbearance agreement. California's Homeowner Bill of Rights (Civil Code 2923.6) prohibits dual tracking — meaning your servicer cannot continue the foreclosure process while a complete loan modification application is under review. Submit a complete application as early as possible.

Sell the Property

Selling before the trustee sale is often the most effective way to stop the foreclosure, pay off what you owe, and preserve whatever equity remains. The key is time — the closer you get to the auction date, the harder it becomes to close a conventional sale with a financed buyer due to lender timelines and contingency periods.

A direct cash buyer can close in 7 to 14 days — fast enough to stop most trustee sales if you act while there is still time. Fast Home Buyer California has been purchasing pre-foreclosure properties throughout California since 2012. We hold DRE license #02006033, understand the NOD-to-sale timeline, and can move quickly when the clock is running.

Short Sale

If you owe more than the property is worth, you may qualify for a short sale — selling the property for less than the loan balance with lender approval. Short sales take longer than a direct cash sale (typically 60-120 days) and require lender cooperation, making them a poor option if the trustee sale date is near.

What NOT to Do After a Notice of Default

Do not ignore the NOD or assume it will resolve itself. The foreclosure timeline moves forward automatically unless you take affirmative action. Do not rely solely on verbal assurances from your servicer — get everything in writing. And do not wait until the Notice of Trustee Sale is recorded before acting, as your options narrow significantly at that point.