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California Civil Code §2924 · Notice of Default (NOD)

Got a Notice of Default in California? Check the date it was recorded.

A Notice of Default is hard news. It is the first recorded notice; it starts the foreclosure clock. Start with two checks. Find the date it was recorded. Then ask the trustee if a sale date is set. The trustee is the company that runs the sale. Its name is on your notice. Don't assume you have three months left. California law says at least three months must pass after the recording date. Only then can a sale notice be posted. Part of that time may be gone already. Free first call. Plain answers, no pressure. Once you hire us as your agent, we represent you — not your lender.

Request a free callTake the 1-minute checkCall Gay-Lynn: (562) 858-7065Call Francisco: (213) 880-8107

What the Notice Means

What a Notice of Default means and what options to compare.

Once a Notice of Default is recorded with the county, anyone can look it up. That is why strangers may send you letters or call you. First, find the recording date on the notice. Then call the trustee and ask if a sale date has been set.

Path 1 · Keep the Property

Catching Up the Overdue Amount (Reinstatement)

Reinstatement means catching up on the missed payments and costs so the loan is current again. California Civil Code §2924c lets you do this for some missed-payment defaults. You pay the past-due payments plus allowed fees and trustee costs. If your loan has reached its maturity date (a balloon payment), the rules are different. That is the date the whole loan comes due. Ask your lender and a lawyer of your own what you must pay.

Path 2 · Through Your Lender

Loan Change or Payment Plan Through Your Lender

You can ask your lender for a loan change or a payment plan. Ask for your lender's mortgage-help team (loss-mitigation department). A loan change (loan modification) is a change to your loan terms that your lender agrees to. For a home with 1 to 4 units, a HUD-approved housing counselor can help with your papers. That is a free counselor approved by HUD, the U.S. housing agency.

Path 3 · Sell Before Auction

Sell Before the Auction

Selling before the auction may leave you money after loans and costs are paid. First, we show you a written estimate of the money left after the sale. This is called a net sheet. The price is not guaranteed.

Path 4 · When You Owe More Than Value

Short Sale or Deed in Lieu

If you owe more than the property is worth, you can ask the lender for a short sale. That is a sale for less than you owe, with your lender's written approval. You can also ask for a deed in lieu. That means giving the property back to the lender instead of an auction. Ask a lawyer of your own if you could still owe some debt after either one. This matters most with commercial loans or personal guarantees.

Read our Short Sales guide →

California has a law called the Homeowner Bill of Rights. It covers a home of 1 to 4 units that the owner lives in. It sets rules on how your loan servicer contacts you. That is the company that collects your loan payments. It also limits moving ahead with a sale while the servicer reviews a complete application for help. Ask a HUD-approved housing counselor or a lawyer of your own how these rules apply to you.

We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney.

Step-by-Step NOD Checklist

What to do step by step after getting a Notice of Default.

This checklist helps you check your dates and compare your choices.

  1. Step 1: Check the recording date and call the trustee

    Find the county recording date at the top of your Notice of Default. Then call the trustee named on the notice. Ask if a sale date is set.

  2. Step 2: Ask for written catch-up and full payoff quotes

    Ask the lender or trustee for two amounts. The first is the exact amount to catch up, if your loan allows it. The second is the full payoff, the amount to pay off the whole loan. Get both in writing so you can compare them.

  3. Step 3: Compare your property value to what you owe

    We write down how much money you may have left after a sale. Then you can compare a regular sale, a short sale, and a plan with your lender.

  4. Step 4: Pick your next step in writing

    You decide what to do. You can catch up, work with your lender, or list the property for sale. We help with the real estate part of the plan you choose.

What Happens Next

What happens next on the California clock?

The trustee must wait at least three calendar months after the Notice of Default is recorded. Only then can it post a Notice of Trustee's Sale (NOS). That is the notice that sets your auction date. The law sets this wait (California Civil Code §2924).

  • Do not assume you have three full months left. Check the date your notice was recorded. Part of that time may have passed.
  • The default ends if you pay the required amount before the auction. It also ends if you close a sale before the auction.
  • The waiting period may end with the loan still unpaid. Then the trustee can post a Notice of Trustee's Sale. The law says the auction date on it must be at least 20 days away.

Notice of Default California · Common Questions

Questions about a Notice of Default in California.

What is a Notice of Default in California under Civil Code §2924?

A Notice of Default (NOD) is the first recorded notice; it starts the foreclosure clock. It says the borrower is behind on the loan terms. The rules are in California Civil Code §2924. At least three calendar months must pass after the NOD is recorded. Only then can a Notice of Trustee's Sale be posted. That is the notice that sets your auction date.

How much time do I have after a Notice of Default is recorded?

Check the date your Notice of Default was recorded. Then ask the trustee if a sale date is set. Don't assume you have three months left. California law says at least three calendar months must pass after the recording date. Only then can a sale notice be posted. Part of that time may have already passed.

Can I catch up on payments or sell my property after a Notice of Default?

Yes. For some missed-payment defaults, you can pay the overdue amount plus allowed fees (Civil Code §2924c). This is called reinstatement. It means catching up on the missed payments and costs so the loan is current again. If your loan has reached its maturity date (a balloon payment), the rules are different. That is the date the whole loan comes due. Ask your lender and a lawyer of your own what you must pay. You can also sell the property before an auction. Or you can ask the lender for a short sale. That is a sale for less than you owe, with your lender's written approval.

Talk With Us · Free First Call

Want to review your Notice of Default dates in plain language?

Plain answers, no pressure. Once you hire us as your agent, we represent you — not your lender.

We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney.

Request a free callTake the 1-minute checkCall Gay-Lynn: (562) 858-7065Call Francisco: (213) 880-8107
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