What is the difference between the Notice of Default and the Notice of Trustee's Sale?

The Notice of Default (NOD) is the first formal step recorded in the county recorder's office notifying the borrower, junior lienholders, and other interested parties that the loan is in default. The NOD triggers a mandatory approximately-90-day reinstatement period during which the borrower may cure by paying past-due amounts. The Notice of Trustee's Sale (NTS or NOS) is recorded after the reinstatement period expires and sets the actual sale date at least 21 days out. The NOD says "you are in default"; the NTS says "sale scheduled for this date."

How long does the non-judicial foreclosure process take?

The minimum statutory timeline from NOD recording to trustee sale is approximately 120 days — 90 days reinstatement period plus 21 days from NTS recording to sale, plus administrative time. In practice, most non-judicial foreclosures in California take 150-200 days from NOD to sale due to lender processing time and mandatory waiting periods. AB 2424's owner-initiated extensions (effective January 1, 2025) can add up to 105 more days when the borrower actively markets the property and enters into a purchase agreement.

Can the borrower still cure the default after the Notice of Trustee's Sale is recorded?

Yes, up to 5 business days before the sale date. This is the "right of reinstatement" under §2924c. Reinstatement requires payment of all past-due amounts, plus fees and costs permitted by §§2924c and 2924d, and reinstates the loan to good standing as though no default had occurred. Reinstatement is distinct from redemption, which in some jurisdictions permits the borrower to buy back the property after sale; California non-judicial foreclosure generally does NOT provide a post-sale statutory right of redemption.

Can the lender pursue a deficiency judgment after a trustee's sale?

Generally no. California's "one-form-of-action" rule (Code of Civil Procedure §726) and anti-deficiency statutes (§§580b, 580d) generally bar deficiency judgments after a non-judicial trustee sale. Section §580b bars deficiency on purchase-money loans (loans that financed the borrower's acquisition of the property); §580d bars deficiency after non-judicial foreclosure regardless of purchase-money status. Narrow exceptions apply for certain commercial contexts and where the property is not owner-occupied. Lenders seeking a deficiency judgment must generally elect judicial foreclosure instead — accepting the slower and more expensive process in exchange for preserving the deficiency claim.

Who can submit a priority bid under §2924m?

Eligible prospective owner-occupants who intend to occupy the property as their primary residence, eligible tenants of the property, certain eligible non-profit entities, and certain public agencies. Each category has statutory eligibility criteria and timing windows for submitting a qualifying bid after the trustee's sale. The trustee must handle qualifying priority bids before the sale is treated as fully final against all parties. Priority bidders must submit a qualifying written bid within the statutory window; the required bid amount depends on the bidder category and the prior winning bid framework under §2924m. Simply expressing interest does not trigger priority-bidder rights.

California Non-Judicial Foreclosure: §§2924–2924h & HBOR

TL;DR

California non-judicial foreclosure — the trustee-sale process under Civil Code §§2924-2924h — is the dominant real property foreclosure mechanism in the state because most residential mortgages are structured as deeds of trust containing an express power of sale. The process moves through statutorily-mandated stages: pre-NOD contact (§2923.55, at least 30 days), Notice of Default recording (§2924), a mandatory reinstatement period of approximately 90 days, Notice of Trustee's Sale recording (§2924f) at least 21 days before the sale, and the trustee's sale itself. The California Homeowner Bill of Rights (HBOR), effective January 1, 2013, and modified January 1, 2019, layers protections including verification of documents (§2924.17), restrictions on dual tracking during loan modification review (§§2923.6 + 2924.11), single point of contact requirements, and restrictions on servicer contact. HBOR applies principally to first-lien mortgages on owner-occupied homes of 4 units or fewer, and its stronger requirements apply if the servicer foreclosed on more than 175 homes in the last year. AB 2424, signed in 2024 and effective January 1, 2025, amends Civil Code §2924f(c)(7)(A) to add two owner-initiated extensions for owners actively attempting to sell — a 60-day sale postponement when the borrower or successor submits a listing agreement published on a Multiple Listing Service (MLS), and an additional 45-day extension to close escrow if the borrower or successor later enters into a signed purchase agreement. Both agreements must be delivered to the trustee and beneficiary at least 5 days before the scheduled sale (practitioners often use 5 business days for safety). Post-sale, §2924m provides priority-bidder rights for eligible owner-occupants, tenants, and non-profit entities within statutorily-defined windows before the sale becomes fully final.

Deed of trust vs mortgage — why non-judicial dominates

California recognizes both mortgages and deeds of trust as real property security instruments, but nearly all residential lending in California uses the deed of trust structure because deeds of trust carry an express power of sale that permits foreclosure without court supervision. Under a deed of trust, the borrower (trustor) conveys legal title to a trustee to hold as security for the debt owed to the lender (beneficiary); on default, the beneficiary instructs the trustee to exercise the power of sale. Under a true mortgage without a power-of-sale clause, judicial foreclosure through the courts is the only remedy. The result: the vast majority of California residential foreclosures proceed as non-judicial trustee sales under Civil Code §§2924-2924h, with judicial foreclosure reserved for niche scenarios (commercial deficiency claims, certain purchase-money limitations, cases where the security instrument lacks a power of sale).

Non-judicial foreclosure is faster and less expensive than judicial foreclosure. The trade-off is that the lender relinquishes the ability to pursue a deficiency judgment against the borrower after the sale — with narrow exceptions for junior liens and certain non-purchase-money loans, California's "one-form-of-action" and anti-deficiency rules (Code of Civil Procedure §§726 and 580b/580d) generally bar deficiency claims following a trustee's sale. This trade-off is a fundamental choice the lender makes when it elects the non-judicial path. For related state-specific frameworks, see our Statute of Frauds guide and our Natural Hazard Disclosure Statement guide.

Stage 1: Pre-NOD borrower contact under §2923.55

Civil Code §2923.55 requires the mortgage servicer to contact the borrower (or make diligent effort to contact) at least 30 days before recording the Notice of Default. The purpose of this pre-NOD contact is to assess the borrower's financial situation and explore options to avoid foreclosure. The servicer must inform the borrower of the borrower's right to a subsequent meeting within 14 days of the initial contact and provide the toll-free telephone number of a HUD-certified housing counseling agency. Failure to make the required contact — and to document the contact attempt properly — is a defense that borrowers may raise in wrongful foreclosure litigation.

The pre-NOD contact requirement applies to first-lien mortgages on owner-occupied residential properties containing no more than four units. The requirement is part of the Homeowner Bill of Rights framework and is enforceable both administratively and through private right of action.

Stage 2: Notice of Default under §2924

Civil Code §2924 permits the trustee, mortgagee, beneficiary, or authorized agent to record a Notice of Default (NOD) in the county recorder's office where the property is located after default has occurred and the pre-NOD contact requirements are satisfied. The NOD must be recorded and mailed to the trustor, any person who has requested notice under §2924b, and other required recipients within 10 business days of recording.

The NOD content is prescribed by §2924c(b)(1) and begins with a boldface statutory warning informing the borrower that the property is in foreclosure, may be sold without any court action, and that the borrower has the right to reinstate the loan by paying all past-due payments plus permitted costs and expenses within the time permitted by law — normally 5 business days prior to the sale date. The NOD must specify the nature of the default, the amount required to cure, and provide contact information for the lender or servicer. Under HBOR, the NOD must also include a declaration of compliance with the pre-NOD contact requirement.

Under §2924c, no sale date may be set until approximately 90 days from the date the NOD is recorded. This 90-day reinstatement period is the borrower's principal opportunity to cure the default by paying all overdue amounts plus fees and costs. During the reinstatement period, the borrower may also negotiate loan modifications, short sales, or other loss mitigation options with the servicer.

Stage 3: Notice of Trustee's Sale under §2924f

If the borrower does not cure the default during the reinstatement period, the trustee records a Notice of Trustee's Sale (NTS or NOS) under §2924f. The NTS must be recorded at least 21 days before the sale date, posted on the property, and mailed to the borrower and other interested parties. It specifies the date, time, and location of the auction, along with trustee contact information and a statement that the property will be sold at public auction to the highest bidder. Under §2924c, the borrower retains the right to reinstate the loan up to 5 business days before the sale date — this is the "right of reinstatement."

Section §2924f(b) provides that the trustee's sale is typically conducted at the county courthouse or a location specified in the notice. The trustee may postpone the sale under §2924g in specified circumstances, and each postponement must be publicly declared at the time and place of the last-scheduled sale. When a sale is postponed for at least 10 business days, the trustee must provide written notice to the borrower of the new sale date within 5 business days of the postponement.

The Homeowner Bill of Rights framework

The California Homeowner Bill of Rights (HBOR), effective January 1, 2013, with substantial modifications on January 1, 2019, is the principal statutory overlay to the non-judicial foreclosure process. HBOR applies to first-lien mortgages on owner-occupied residential real property containing no more than four units; certain provisions require the servicer to have foreclosed on more than 175 homes in the last reporting period to trigger the more protective HBOR rules. Key HBOR components include:

Notification of foreclosure-prevention options (§§2923.55, 2924.9). Servicer must attempt contact at least 30 days before starting foreclosure and must provide information about foreclosure-prevention options within 5 days of recording the NOD.

Restrictions on dual tracking (§§2923.6, 2924.11). Servicer must generally pause the foreclosure process while making a decision on a complete loan-modification application and until the borrower has had time to appeal a denial. This restriction on dual tracking — pursuing foreclosure and processing a modification application at the same time — is one of HBOR's most consequential protections.

Guaranteed single point of contact. If the borrower requests a loan modification or other foreclosure-prevention option, the servicer must assign a specific person or team who can walk the borrower through requirements, deadlines, and application status.

Verification of documents (§2924.17). Servicer must review foreclosure documents to ensure accuracy, completeness, and support by reliable evidence about the loan, its status, and the servicer's right to foreclose.

Tenant rights (Code of Civil Procedure §1161b). Purchasers of foreclosed homes must give tenants at least 90 days before starting eviction proceedings. Fixed-term leases entered into before the foreclosure sale must generally be honored.

AB 2424 (2024) — owner-initiated postponement mechanisms

Assembly Bill 2424, signed in 2024 and effective January 1, 2025, adds two owner-initiated postponement mechanisms to the trustee-sale timeline. The mechanisms are designed to give owners a realistic runway to sell the property at market value and preserve equity rather than allowing a quick foreclosure sale to strip that equity.

60-day postponement of the sale for an MLS listing agreement. AB 2424 amends Civil Code §2924f(c)(7)(A) to require the lender to provide a 60-day postponement of the sale when the borrower or a successor in interest submits a listing agreement published on a Multiple Listing Service (MLS). The listing agreement must be delivered to both the trustee and the beneficiary at least 5 days before the scheduled sale date (practitioners often use 5 business days for safety). The postponement gives the owner or successor time to market the property and pursue a fair-value sale.

Additional 45-day extension to close escrow for a signed purchase agreement. If the borrower or successor later enters into a signed purchase agreement, they are entitled to an additional 45-day extension to close escrow. The purchase agreement must also be delivered to the trustee and beneficiary at least 5 days before the scheduled sale date. Combined with the 60-day MLS-listing postponement, this can add up to 105 days of additional time for owners actively pursuing a market sale — meaningful runway to complete a full-value transaction rather than accepting a foreclosure-auction outcome.

Post-sale priority bidders under §2924m

After the trustee's sale is conducted, Civil Code §2924m provides a post-sale window in which eligible bidders may submit qualifying bids during the statutory window; in general, eligible tenant buyers or prospective owner-occupants may submit bids that exceed the last and highest bid, while eligible non-profit and public-entity rules have their own matching/exceeding framework. Priority bidders include eligible prospective owner-occupants, eligible tenants of the property, and eligible non-profit entities. The trustee must post or make available the sale results including the winning bid and bidder category, and must handle qualifying priority bids submitted within the statutory windows before the sale is treated as fully final.

For lenders and third-party investors, §2924m creates practical uncertainty about post-sale finality: a winning bidder at the auction cannot immediately begin planning for possession, rehabilitation, or resale until the §2924m priority-bidder windows expire. This is why REO strategies in California increasingly account for the §2924m interval as a mandatory holding period.

Frequently Asked Questions

What is the difference between the Notice of Default and the Notice of Trustee's Sale?: The Notice of Default (NOD) is the first formal step recorded in the county recorder's office notifying the borrower, junior lienholders, and other interested parties that the loan is in default. The NOD triggers a mandatory approximately-90-day reinstatement period during which the borrower may cure by paying past-due amounts. The Notice of Trustee's Sale (NTS or NOS) is recorded after the reinstatement period expires and sets the actual sale date at least 21 days out. The NOD says "you are in default"; the NTS says "sale scheduled for this date."
How long does the non-judicial foreclosure process take?: The minimum statutory timeline from NOD recording to trustee sale is approximately 120 days — 90 days reinstatement period plus 21 days from NTS recording to sale, plus administrative time. In practice, most non-judicial foreclosures in California take 150-200 days from NOD to sale due to lender processing time and mandatory waiting periods. AB 2424's owner-initiated extensions (effective January 1, 2025) can add up to 105 more days when the borrower actively markets the property and enters into a purchase agreement.
Can the borrower still cure the default after the Notice of Trustee's Sale is recorded?: Yes, up to 5 business days before the sale date. This is the "right of reinstatement" under §2924c. Reinstatement requires payment of all past-due amounts, plus fees and costs permitted by §§2924c and 2924d, and reinstates the loan to good standing as though no default had occurred. Reinstatement is distinct from redemption, which in some jurisdictions permits the borrower to buy back the property after sale; California non-judicial foreclosure generally does NOT provide a post-sale statutory right of redemption.
Can the lender pursue a deficiency judgment after a trustee's sale?: Generally no. California's "one-form-of-action" rule (Code of Civil Procedure §726) and anti-deficiency statutes (§§580b, 580d) generally bar deficiency judgments after a non-judicial trustee sale. Section §580b bars deficiency on purchase-money loans (loans that financed the borrower's acquisition of the property); §580d bars deficiency after non-judicial foreclosure regardless of purchase-money status. Narrow exceptions apply for certain commercial contexts and where the property is not owner-occupied. Lenders seeking a deficiency judgment must generally elect judicial foreclosure instead — accepting the slower and more expensive process in exchange for preserving the deficiency claim.
What is dual tracking and why does HBOR restrict it?: Dual tracking is the practice of a servicer pursuing foreclosure while simultaneously processing a borrower's loan-modification application. The servicer keeps the foreclosure clock running even while representing to the borrower that a modification is under review, resulting in cases where borrowers reasonably believed they were negotiating a solution and instead discovered their home had been sold at a scheduled trustee sale. HBOR restrictions on dual tracking under §§2923.6 and 2924.11 require the servicer to generally pause the foreclosure process while making a decision on a complete loan-modification application, and until the borrower has had time to appeal a denial. The restrictions are enforceable through private right of action; borrowers who prove a HBOR dual-tracking violation may obtain injunctive relief and, after sale, damages. Where the servicer is a California-licensed real estate broker or the loan originator involved licensees engaged in misrepresentation, DRE administrative discipline may also apply — see our Commissioner disciplinary process guide for the enforcement side.
Who can submit a priority bid under §2924m?: Eligible prospective owner-occupants who intend to occupy the property as their primary residence, eligible tenants of the property, certain eligible non-profit entities, and certain public agencies. Each category has statutory eligibility criteria and timing windows for submitting a qualifying bid after the trustee's sale. The trustee must handle qualifying priority bids before the sale is treated as fully final against all parties. Priority bidders must submit a qualifying written bid within the statutory window; the required bid amount depends on the bidder category and the prior winning bid framework under §2924m. Simply expressing interest does not trigger priority-bidder rights.

Bottom Line

California non-judicial foreclosure under Civil Code §§2924-2924h is the dominant real property foreclosure mechanism because most residential mortgages use a deed of trust with an express power of sale. The process moves through pre-NOD borrower contact (§2923.55, at least 30 days), Notice of Default recording (§2924) with an approximately 90-day reinstatement period, Notice of Trustee's Sale recording (§2924f) at least 21 days before the sale, and the trustee's sale itself. The minimum statutory NOD-to-sale timeline is approximately 120 days, though practical timelines run 150-200 days. The California Homeowner Bill of Rights (HBOR), effective January 1, 2013, and modified January 1, 2019, layers protections including pre-NOD contact requirements, restrictions on dual tracking during loan modification review, single point of contact, verification of documents (§2924.17), and 90-day tenant post-sale eviction notice. HBOR applies principally to first-lien mortgages on owner-occupied homes of 4 units or fewer. AB 2424 (2024, effective January 1, 2025) amends Civ. Code §2924f(c)(7)(A) to add two owner-initiated extensions — a 60-day sale postponement for an MLS listing agreement and an additional 45-day extension to close escrow for a signed purchase agreement —. Post-sale, §2924m creates priority-bidder windows for eligible owner-occupants, tenants, and non-profits before the sale is fully final. Deficiency judgments are generally barred after a non-judicial trustee sale under California's one-form-of-action rule and anti-deficiency statutes (§§580b, 580d). For related state-specific frameworks, see our Statute of Frauds guide and our Natural Hazard Disclosure Statement guide.

Source: California Civil Code §§2924-2924k — Non-Judicial Foreclosure · California Attorney General — California Homeowner Bill of Rights · California Lawyers Association — AB 2424 Extending Foreclosure Timelines