🛑 Behind on Mortgage Payments?
🏡 Understanding the California Foreclosure Timeline (And How to Protect Your Equity)
Falling behind on mortgage payments can feel overwhelming — but in California, the foreclosure process follows a very specific timeline, and knowing that timeline can give you back a sense of control.
Most importantly:
You may still have options, and you may still have equity worth protecting.
Here is step-by-step through what actually happens in a California nonjudicial foreclosure (used in over 90% of cases) and where homeowners still have the opportunity to stop the process.
📅 Step 1: Missed Mortgage Payments (Pre-Foreclosure Begins)
Foreclosure doesn’t start the moment you miss a single payment.
California lenders typically begin the formal process after 90 days of missed payments.
During this period, the lender is required to:
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Attempt to contact you
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Provide information about foreclosure alternatives
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Offer a chance to discuss repayment options
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But if payments remain unpaid, the formal process begins.
⚠️ Step 2: Notice of Default (NOD)
This is the official start of foreclosure.
Once the lender records a Notice of Default, the clock starts ticking.
The NOD includes:
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How much you’re behind
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How to bring the loan current
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Contact information for the lender or trustee
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At this point, many homeowners feel panic — but the truth is:
👉 You still have time.
👉 You still have rights.
👉 You still have equity.
⏳ 90-Day Reinstatement Period (Your First Window to Fix the Situation)
After the Notice of Default is filed, California law provides a full 90 days for you to:
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Catch up on payments
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Negotiate with the lender
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Apply for a loan modification
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Sell the home
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Or—if you have equity—use a short-term hard-money loan to bring the loan current and stop foreclosure completely
This 90-day period is critical.
No sale or auction can happen during this window.
📄 Step 3: Notice of Trustee Sale (NOTS)
If the default is not cured within 90 days, the lender can file a Notice of Trustee Sale.
This is a public notice that the property is scheduled for auction.
Legally, the NOTS must be:
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Posted visibly on the property
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Published in a local newspaper
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Mailed to the homeowner
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Set for a sale date at least 21 days later
Even here, you still have options.
✋ Reinstatement Deadline: 5 Business Days Before the Sale
California allows homeowners to reinstate the loan — meaning bring payments current — up until:
👉 Five business days BEFORE the auction date
This means all the way through:
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Notice of Default
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90-day reinstatement period
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AND part of the trustee sale period
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You still have the legal right to stop foreclosure.
🔨 Step 4: Trustee Sale (Auction)
This is the final step.
If no action is taken:
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The home may be sold to a third-party bidder
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Or revert back to the bank (becoming REO/Bank-Owned)
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You will lose ownership and the right to the property
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There is no redemption period in California after a nonjudicial sale
Once the auction happens, it’s final.
🧮 Minimum Legal Timeline: 111 Days
💡 Where Most Homeowners Still Have Strong Options
If you have equity, you may be able to:
✔ Stop foreclosure
✔ Remove the NOD
✔ Bring the loan current
✔ Sell on YOUR terms — not the bank’s
✔ Walk away with your equity
Many owners mistakenly believe foreclosure is a “done deal.”
But California law intentionally gives multiple windows to fix it.
🧭 How We Help Homeowners in NOD Status
If you’re behind on payments but have equity, we can often:
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Arrange a short-term hard-money loan
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Use it to pay off missed payments & reinstate the loan
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Remove the NOD
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Give you 3–6 months to sell the home at full market value
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Pay back the temporary loan at closing
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Help you walk away with your equity preserved
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It’s a lifeline for homeowners who need breathing room.
📩 Want to See What Your Foreclosure Timeline Looks Like?
Every timeline is slightly different based on:
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Your lender
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Your loan type
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How far behind you are
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Your equity position
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Whether a NOTS has already been filed
I can review your situation confidentially and show you exactly what options you still have.
🛑 Real Example of How Our Solution Works
When homeowners fall behind on payments, the situation can feel overwhelming — but you still have options, and you can still protect your equity.
Here’s a real-world example to show exactly how our solution helps owners avoid foreclosure and walk away with their equity intact.
🏠 Example Scenario: A $1.2 Million Home With a $400,000 Mortgage
Imagine a homeowner with:
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Home Value: $1,200,000
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Mortgage Balance: $400,000
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Monthly Mortgage Payment: ~$3,000
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Missed Payments: Several months
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Status: Bank has issued a Notice of Default (NOD)
Even though the homeowner is behind, they still have about $800,000 in equity.
Without taking action, foreclosure would wipe out most or all of this equity.
💡 Our Solution: A Short-Term Hard Money Loan to Reset the Timeline
We arrange a temporary hard money loan to:
✔ Bring the mortgage current
✔ Pay all missed payments
✔ Stop the foreclosure process
✔ Remove the Notice of Default
✔ Give the homeowner time to sell — safely and without panic
No payments are required during this short-term loan, and everything is paid off at closing when the home sells.
📆 The Timeline: 3–6 Months of Breathing Room
Even though the loan allows up to 6 months, the average home sells in about 3 months at or near full market value.
During this time, owners can:
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Prepare the home properly
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List the home for top dollar
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Avoid a forced sale or auction
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Stop all foreclosure pressure
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Maintain control of their equity
💰 When the Home Sells
When the home sells at the full $1.2M market value:
The sale proceeds pay:
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Remaining $400,000 mortgage balance
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Hard money loan payoff (including interest)
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Standard closing costs
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Agent commissions
The homeowner keeps the remaining equity
Rather than losing everything to a foreclosure, the homeowner walks away with hundreds of thousands of dollars — cash they would have completely lost at auction.
⭐ Why This Works
This strategy is the perfect bridge for homeowners who:
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Have equity
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Are temporarily behind
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Want to avoid foreclosure
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Want to walk away with the equity they’ve earned
It replaces urgency with control, replaces fear with a plan, and protects the wealth tied up in the home.
👉 Want to See How This Works for Your Situation?
We can run the numbers for your home, explain your foreclosure timeline, and show you exactly how much equity you can protect.
You don’t have to lose your home.
You don’t have to lose your equity.
You DO have options.