Here in Sacramento County, when someone falls behind on a mortgage, the foreclosure path a lender usually takes is called nonjudicial foreclosure. That means it happens outside of court, following a process set by California law. It starts with a notice of default. The lender or its trustee records that notice and mails it to you, and it tells you how much you’re behind. This is the point where you should not just ignore the envelope. Call your servicer and ask for the loss mitigation department, and consider reaching out to a HUD-approved housing counselor, which is free and can help you understand your options.
After the notice of default is recorded, there’s a waiting period before the lender can move forward. During that time, you have the right to reinstate the loan, which generally means paying the past-due amount plus allowable fees and costs to bring the loan current. The exact amount and timing depend on your situation, so ask the trustee for a written reinstatement quote rather than guessing. If you can’t pay it all at once, ask whether a repayment plan or loan modification is possible. Nothing is guaranteed, and the servicer decides based on its own review.
If the loan isn’t reinstated or worked out, the next step is the notice of trustee sale. That notice gets recorded and published, and it sets a sale date. It’s a serious milestone, but it doesn’t mean you’re out of options that same day. A sale can sometimes be postponed, and a bankruptcy filing can affect the timeline, though that’s a decision to make with a lawyer, not on your own. If you’re considering that route, talk to a bankruptcy attorney quickly.
The California Homeowner Bill of Rights adds protections on top of this process. In general terms, it limits dual tracking, meaning a servicer generally shouldn’t move forward with foreclosure while a complete loan modification application is under review. It also requires clear communication and a single point of contact for many borrowers, and it gives you rights to appeal certain denials. These protections have conditions and exceptions, and they don’t apply to every loan or every situation, so don’t assume they automatically stop a sale. If you think your rights are being violated, a lawyer who handles foreclosure defense can tell you what applies to you.
Practically speaking, keep copies of everything you send and receive, and send important documents in a way you can prove delivery. Open the mail, answer the phone, and put your request for help in writing. If you’re not sure whether you qualify for a program, ask your servicer and a HUD-approved counselor. For property tax or local assistance questions, the county is the right place to ask. And for tax consequences of a modification, short sale or foreclosure, talk to a CPA, because that part depends heavily on your individual finances.
This is covered in more detail at California foreclosure notice timeline.