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Facing Foreclosure in California

California runs most foreclosures outside the courts, on a clock fixed by statute: three months from the recorded Notice of Default, then at least twenty-one days after the trustee sale notice posts. Roughly a hundred and eleven days at the floor. What you can still do depends entirely on where in that window you are — and if you hold equity, an auction is the worst way to realise it.

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The statutory clock, stage by stage

California runs most foreclosures outside the courts, on a clock fixed by statute: three months from the recorded Notice of Default, then at least twenty-one days after the trustee sale notice posts. Roughly a hundred and eleven days at the floor. What you can still do depends entirely on where in that window you are — and if you hold equity, an auction is the worst way to realise it.

California's foreclosure clock starts when the Notice of Default is recorded and runs three months before a sale notice can post. Up to five days before the auction the statutory right to reinstate survives; inside those final five days only a full payoff stops it. A HUD-approved counselor costs nothing and should be your other call.

What's still possible at each stage

Your options narrow as the clock runs. Here is what stays open, and for how long.

Sell before auction date

A sale that funds before the auction date cancels the trustee sale. The constraint is the calendar, not the paperwork, so the earlier you start the more room there is to work with.

Pay off the mortgage at close

Escrow wires the servicer their payoff and the balance comes to you. A house worth $480,000 against a $310,000 loan holds $170,000 that an auction is a poor mechanism for realising.

Avoid a deficiency judgment

California's anti-deficiency rules cover many purchase-money loans on owner-occupied homes, but refinances and second liens can sit outside that protection. Worth confirming which you have before assuming you are covered.

Protect your credit

A completed foreclosure stays on your file for seven years and takes a heavy bite out of your score. A sale that pays the loan leaves only the late payments behind, and the road back to a mortgage is considerably shorter.

Walk away with cash, not nothing

A trustee sale satisfies the debt; it does not protect your equity. Homeowners routinely underestimate how much of theirs is sitting in the house, and an auction is the least effective way to get it back.

Short sale alternative

If you owe more than the house is worth, a lender-approved short sale may be the route. It needs the servicer's agreement and the sale date postponed, so it starts earlier than people expect.

Selling during foreclosure — step by step

The same three steps we run on every property, shaped around what you're dealing with.

1

Send us the address

Send the address by form or phone. A minute of your time, nothing pulled, nobody assigned to you.

2

We come back with a number

We work the numbers and come back inside a day with a figure that holds. No revisions after inspection.

3

Your closing date, not ours

You name the date, anywhere from a week out to a couple of months. Escrow and title are on us.

Cash sale vs. listing with an agent

What each route really costs once you count the weeks, not just the price.

Redwood Property Buyers
Listing with an agent
How long it takes
One to three weeks
Two to three months, typically
Showings
None
Strangers through the house for weeks
Repairs
Nothing — we take it as it stands
Commonly five to thirty thousand
Cleaning
Leave whatever you like
Scrubbed before every showing
Commissions
$0
Five to six percent off the top
Closing costs
We pay
One to three percent, out of your proceeds
Re-trading after inspection
Never
Common
Risk the loan collapses
None — we are not borrowing
Roughly one deal in eight dies here
Will it actually close
Yes, on the date you picked
Uncertain

Foreclosure questions we get most

Something we didn't cover? Pick up the phone, we'll answer it straight.

How much time do I have before auction? +
Three months minimum from the recorded Notice of Default, then the sale notice must be posted and published at least twenty days ahead. About a hundred and eleven days at the statutory floor, though lenders often take longer. We close in one to three weeks, so a recorded NOD does not by itself put a sale out of reach.
Will selling stop foreclosure? +
Yes — if we close before the trustee sale, your loan is paid off and the foreclosure is canceled. Speed matters: don't wait until days before the auction.
How much does foreclosure damage my credit vs. selling? +
Foreclosure: 100-160 point drop, stays on your credit 7 years. Cash sale: minimal credit impact (only the late payments). You can re-qualify for a mortgage 1-2 years sooner.
What if I'm already in default? +
We've worked with sellers who are 30, 60, even 120 days behind. As long as we close before the trustee sale, your default is resolved at closing.
Can you help with HUD or VA loans? +
Yes. We've handled FHA, VA, USDA, and conventional loans through default and foreclosure proceedings.

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