1. What the Notice of Trustee’s Sale Means
The Notice of Trustee’s Sale (NTS) is the document that sets the official auction date for your property.
Under Cal. Civ. Code § 2924f, the trustee must record, post, and mail the notice to you and all interested parties after at least 90 days have passed since the Notice of Default (NOD) was recorded.
The notice must:
- State the sale date, time, and location
- Include the property address and trustee’s contact info
- Be published in a local newspaper for three consecutive weeks
This is the lender’s final step before the foreclosure sale occurs.
2. The 21-Day Rule
By law, the sale cannot happen sooner than 21 days after the NTS is recorded and posted.
During this time, homeowners still have the right to:
- Reinstate the loan (up to five business days before sale)
- Pay off the entire loan balance before the sale
- Sell the property or complete a short sale
- Negotiate with the lender for postponement or modification
3. How the Trustee’s Sale Works
If the default remains unresolved, the property is sold at public auction to the highest bidder, which is often the lender.
Bidders must bring certified funds (cashier’s check or equivalent).
If no third-party buyers bid, the lender typically takes ownership through a credit bid and becomes the new owner of record.
After the sale, the trustee issues a Trustee’s Deed Upon Sale, finalizing the transfer.
4. Can the Sale Be Postponed?
Yes—trustees can postpone the sale for up to one year without re-recording a new notice.
Postponements often occur due to:
- Active loan modification reviews
- Bankruptcy filings (automatic stay)
- Mutual agreements or payment arrangements
Always verify sale status directly with the trustee named on the notice, not third-party websites.
5. After the Sale
Once the sale is completed, ownership transfers immediately.
California does not offer a post-sale redemption period for nonjudicial foreclosures (Cal. Civ. Code § 2924h).
If you’re still in the property, the new owner must follow formal eviction procedures, beginning with a 3-day notice to quit.
A Notice of Trustee’s Sale is urgent—but not final. Knowing your rights and acting quickly can make all the difference between keeping and losing your home.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
