Understanding the Foreclosure Process in California

Foreclosure can feel overwhelming, but if you’re facing financial hardship in California, you’re not alone. At Seabrooke Group, we believe that every homeowner deserves to understand their rights, options, and the foreclosure process in California. With the right knowledge and support, you can make empowered decisions and potentially avoid losing your home.

What is Foreclosure?

Foreclosure is the legal process that lenders use to recover the balance of a loan from a borrower who has stopped making mortgage payments. In California, most foreclosures are non-judicial, meaning they don’t go through the court system. This makes it especially important to act quickly if you fall behind on your payments.

California Foreclosure Process Timeline

Understanding the foreclosure timeline in California can help you take timely action:

1. Missed Mortgage Payments

Foreclosure typically begins after you’ve missed 3 or more consecutive mortgage payments. Lenders are required to contact you to discuss alternatives before initiating foreclosure.

2. Notice of Default (NOD)

After 30 days from contact, the lender may file a Notice of Default. This legal document states that the borrower is behind on payments and has 90 days to catch up. This period is known as the reinstatement period.

3. Notice of Trustee Sale

If the loan isn’t brought current during the 90-day window, a Notice of Trustee Sale is issued. This gives at least 21 days’ notice before your property is auctioned.

4. Trustee Sale

At the public auction, your home may be sold to the highest bidder. If it doesn’t sell, it becomes bank-owned (REO).

5. Post-Sale Eviction

If you're still living in the property, you may be served with an eviction notice. California law requires a formal process for eviction, and tenants may have additional protections.

Your Legal Rights During Foreclosure in California

California’s Homeowner Bill of Rights provides key protections:

• Right to reinstate your loan up to 5 business days before the trustee sale.

• No dual tracking: Lenders cannot proceed with foreclosure while a loan modification application is pending.

• Notice requirements: Lenders must provide written notices before each step.

Foreclosure Alternatives

You may have options to stop foreclosure in California or minimize its impact:

• Loan Modification: Adjust your loan terms for a more affordable payment.

• Repayment Plan: Catch up over time by paying extra each month.

• Forbearance: Temporarily reduce or pause your payments.

• Short Sale: Sell your home for less than owed with lender approval.

• Deed in Lieu of Foreclosure: Transfer the deed back to the lender.

• Bankruptcy (Chapter 13): May delay or stop the foreclosure process.

  
  

At Seabrooke Group, we help evaluate these options based on your unique situation.

Common Mistakes to Avoid

Many homeowners unintentionally make things worse by:

• Ignoring notices or calls from the lender

• Believing foreclosure happens overnight

• Falling for foreclosure rescue scams

• Moving out too early without consulting professionals

  
  

You don’t have to navigate this alone—our team at Seabrooke Group is here to help.

Who Can Help You

• Seabrooke Group: Real estate experts who understand distressed property sales

• HUD-Approved Counselors: Offer free or low-cost advice

• Foreclosure Attorneys: For complex cases and legal protection

• Nonprofit Organizations: May provide grants or financial assistance

  
  

Take Control Today

Foreclosure is stressful, but with knowledge and support, it doesn’t have to define your future. The foreclosure process in California is designed with steps and timeframes, giving you opportunities to act. Whether you need to understand the notice of default, avoid the trustee sale, or explore foreclosure alternatives, Seabrooke Group is here for you.

Contact Seabrooke Group today for a free consultation and take the first step toward reclaiming control of your financial future.