Pre-Foreclosure Options in California

If a Notice of Default has been recorded on your home, you are in what California calls pre-foreclosure. You still have time and real options — but the clock is running, and the decisions get harder the closer you get to the trustee sale date. This page lays out what those options generally look like and the scams to watch for. It is general information, not legal advice, and not a promise that any particular option is available in your situation.

What generally happens, and when

After a Notice of Default is recorded, California law requires a waiting period before a Notice of Trustee Sale can be recorded, and then further notice before the sale itself. The exact timeline depends on your loan, your lender, and whether you take any action in the meantime. The sale date on your notice is the deadline that matters — not a rough estimate.

Options homeowners generally have before the sale

• Reinstatement. Paying the full past-due amount, plus allowed fees and costs, by a set date to bring the loan current and stop the sale.
• Forbearance. An agreement with your lender to pause or reduce payments for a period, usually with a plan to repay the difference later.
• Loan modification. A permanent change to your loan terms — interest rate, term, or principal — to make payments affordable again.
• Short sale. Selling the home for less than what is owed, with your lender’s agreement to accept the proceeds as payoff.
• Deed in lieu of foreclosure. Voluntarily transferring the property to the lender to avoid a foreclosure sale, usually a last resort when other options do not work.
• Selling the property before the sale date. If there is equity and the timeline allows, a straight sale — listed or sold directly to a buyer — can resolve the loan and preserve whatever equity is left.
• Bankruptcy. Filing can pause a scheduled sale, but it is a significant legal step with lasting consequences and needs its own legal advice.

Which of these actually fits your situation depends on your loan, your lender’s rules, your timeline, and your finances. Your loan servicer and a HUD-approved housing counselor are the first calls worth making — housing counseling through a HUD-approved agency is free. For anything involving a contract, a deed, or bankruptcy, talk to a California real estate or bankruptcy attorney before you sign anything.

Foreclosure rescue scams to watch for

Homeowners in pre-foreclosure are a known target for scams. California’s Foreclosure Consultant Law exists specifically because of this pattern. Warning signs include:

• Anyone who asks for payment upfront before doing any work, especially for “guaranteed” results.
• Anyone who asks you to sign over the deed, a power of attorney, or your mortgage payments to them as part of a “rescue” plan.
• “Sale-leaseback” offers where you sign the house over and are told you can rent it back and buy it later — these have a long history of ending badly for the homeowner.
• Pressure to sign documents fast, without time to read them or show them to anyone else.
• Anyone contacting you about surplus or excess funds from a sale that has not happened yet, or asking for a fee to “help release” those funds. Under California law, a foreclosure consultant cannot take payment to help release surplus sale funds.

If something feels rushed or too good to be true, slow down and call a HUD-approved housing counselor or the California Department of Justice before signing anything.

If you’re considering a direct sale

We are a direct property buyer, not a foreclosure consultant, a lender, or a law firm, and we do not charge any fee tied to stopping, delaying, or negotiating your foreclosure. What we do is straightforward: if you want to explore selling the property directly, before the sale date, we will look at the property and give you a straight answer, in plain terms, about whether a direct sale makes sense for your timeline. There is no obligation and no upfront cost to ask.

Questions people ask

Is there still time if the sale date is close?

Sometimes, but it depends entirely on your specific dates and lender. Call your servicer and a housing counselor first to understand exactly where you stand — do not assume either way.

Can you stop my foreclosure?

No. We are not a foreclosure consultant and we do not offer, negotiate, or charge for foreclosure-stopping services. What we can do is talk with you about selling the property directly if that is a route you want to explore.

Is a HUD housing counselor really free?

Yes. HUD-approved housing counseling agencies provide this service at no cost.

What if I already missed the sale date?

If the trustee sale already happened, your next step is understanding what happens to any money left over once the sale proceeds cover what was owed. Contact the trustee named on your sale documents, or a California real estate attorney, about the surplus funds claim process.

Talk to us

Call or text (510) 417-9089, or send the short form on this page, and tell us your timeline and the city.

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Please read this part

This page is general information about California pre-foreclosure processes, current as of publication, and is not legal advice. Timelines, rights, and requirements can change and can vary by loan and lender. We are not attorneys, loan servicers, or registered foreclosure consultants, and this page does not create any such relationship. For advice specific to your situation, talk to a California real estate or bankruptcy attorney, your loan servicer, or a HUD-approved housing counselor. Nothing on this page is a promise of an offer, a recovery, or an outcome. Property inquiries through this page go to the property division of Bay Area Services; notary services on this website are provided separately by Notary Experts.