1. Confirm the Sale Date Immediately
Before taking any action, confirm exactly when your property is scheduled for auction. You can check by:
- Calling the trustee listed on the Notice of Trustee’s Sale;
- Visiting the trustee’s website (most post auction calendars); or
- Searching county records for the Trustee’s Deed Upon Sale (if already sold).
Sales can be postponed up to 365 days from the original date (Cal. Civ. Code § 2924g(c)(1)), so double-check to ensure the sale is still active.
2. Reinstating the Loan
California gives homeowners the legal right to reinstate their loan up to five business days before the sale (Cal. Civ. Code § 2924c). This means paying:
- All missed payments
- Late fees
- Reasonable trustee and attorney’s costs
If you can secure funds from savings, family, or short-term financing, reinstatement will cancel the foreclosure entirely and reset your mortgage to current status.
3. Filing for Bankruptcy
A properly filed bankruptcy petition triggers an automatic stay under federal law (11 U.S.C. § 362), which immediately halts foreclosure proceedings.
- Chapter 13 allows you to repay arrears over 3–5 years while keeping your home.
- Chapter 7 offers temporary relief while unsecured debts are discharged.
Bankruptcy is a serious decision—consult a qualified bankruptcy attorney before filing, as timing errors can jeopardize your protection.
4. Submitting a Complete Loss-Mitigation Application
Under the Homeowner Bill of Rights (HBOR), servicers are prohibited from “dual tracking”—continuing foreclosure while a complete modification or forbearance application is under review (Cal. Civ. Code § 2923.6). If you’ve submitted a full application, the trustee must pause the sale until:
- You’re approved or denied in writing; and
- Any appeal period (usually 30 days) has expired.
Keep proof of submission—fax receipts, emails, or upload confirmations.
5. Requesting a Trustee’s Sale Postponement
The trustee or lender may voluntarily postpone the sale if you can show verifiable progress toward resolution (e.g., pending short sale, refinance, or modification). Ask in writing for a voluntary postponement under § 2924g(d)—even a 10-day delay can buy time to complete a solution.
6. Emergency Legal Remedies
If the lender violates HBOR or foreclosure laws, you can seek a Temporary Restraining Order (TRO) from the Superior Court to stop the sale. Courts may issue TROs within hours if there’s clear evidence of servicer misconduct, improper notice, or dual tracking. This option typically requires attorney representation and proof of a legitimate legal claim. Even in the final days, foreclosure isn’t always final. California law gives you structured ways to pause, negotiate, or completely stop a sale—if you move fast and keep proof of every step you take.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
