1. What the Notice of Default Really Is
When a borrower falls about 90 days behind on payments, the lender can record a Notice of Default with the county recorder under Cal. Civ. Code § 2924.
This public document notifies the homeowner and anyone with an interest in the property that the loan is in default.
It’s the lender’s legal first step—not an announcement that your home is already lost.
2. The 90-Day Reinstatement Period
After recording the NOD, the lender must wait at least 90 days before scheduling a trustee’s sale.
During this period, you still have the legal right to reinstate your loan—by paying the past-due amount plus fees—or to negotiate a loan modification or forbearance plan.
California’s Homeowner Bill of Rights (§ 2923.5 et seq.) also requires the lender to make a good-faith effort to review any complete modification applications before moving forward.
3. What You Should Do Immediately
A) Read the Notice carefully. Confirm your loan number, trustee, and the default amount are correct.
B) Contact your lender’s loss-mitigation department—in writing—to request reinstatement or modification information.
C) Keep records of every call, letter, and email. Organized documentation helps prove compliance and can delay improper foreclosure actions.
D) Reach out for qualified help. HUD-approved housing counselors and licensed foreclosure attorneys can guide you without charging large upfront fees.
4. Common Misconceptions
“I’ve already lost the house.” Not true. You still own the property until a trustee’s sale occurs and the deed transfers.
“The bank won’t talk to me.” They must make reasonable contact attempts under California law.
“Ignoring the notice buys time.” Silence actually accelerates foreclosure because deadlines keep running.
5. Your Next 90 Days Matter
Use this time to communicate, document, and act. Many homeowners resolve the default through a modification, refinance, or negotiated sale before the sale notice ever posts.
If you do nothing, the next step will be a Notice of Trustee’s Sale, which can set an auction date as soon as 21 days later.
A Notice of Default isn’t the end—it’s the wake-up call that still comes with options. When you understand the process, you can protect your home and regain control.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
