How to Stop Foreclosure in California: Your 2025 Guide

If you’re behind on mortgage payments and afraid of losing your home, you’re not alone. Thousands of homeowners across California find themselves in this situation every year due to job loss, unexpected medical bills, divorce, or other financial setbacks. The good news? You can stop foreclosure—but the key is acting quickly.

In this comprehensive guide, we’ll show you how to stop foreclosure in California. We’ll walk you through the legal process, share your rights as a homeowner, explain your options, and offer real-world solutions—whether your goal is to keep your home, sell it before the auction, or just understand what happens next.

Understanding the Foreclosure Process in California

Foreclosure is the legal process lenders use to reclaim a property after a borrower falls behind on mortgage payments. In California, most foreclosures are non-judicial, meaning they happen outside the court system. That makes the timeline faster—and often more stressful.

The Foreclosure Timeline

Understanding the timeline of foreclosure in California is key to knowing how much time you have—and what steps you can take at each stage to stop it.

Here’s a more detailed breakdown of how foreclosure usually works in California:

1. Missed Payments (Day 1–90): Once you miss a mortgage payment, your lender will typically start reaching out by mail or phone. This is your window to get back on track with minimal consequences. After 90 days of missed payments, your loan is considered in default.
2. Notice of Default (NOD) Filed (Day 90+): After at least 90 days of non-payment, the lender records a Notice of Default with the county recorder’s office. This starts the official foreclosure clock. The notice will also be mailed to you and posted on your property. From this point, you typically have 90 days to “cure” the default—meaning, pay what you owe in missed payments, late fees, and legal costs—to stop the foreclosure process.
3. Notice of Trustee Sale (After 90 Days of NOD): If the default isn’t resolved within the 90-day period, the lender can schedule a foreclosure auction. You’ll receive a Notice of Trustee Sale at least 20 days before the sale date, which includes the auction date, time, and location. This notice must also be published in a local newspaper for three consecutive weeks.
4. Foreclosure Auction (Day 200+): The home is sold at a public auction to the highest bidder, which could be an investor or the lender itself. If it sells, the new owner gets the deed to your home. If no one bids, ownership transfers to the lender and the home becomes a bank-owned property (REO).
5. Post-Sale Eviction: Once the home is sold, you may receive a notice to vacate. If you don’t leave voluntarily, the new owner can start the eviction process, which may take a few weeks depending on your location and circumstances.

➡️ Timeframe: From your first missed payment, the foreclosure process in California can take as little as 4–6 months, but delays are possible if the lender agrees to work with you or if you pursue legal protections like bankruptcy. Acting during the early phases—ideally before the Notice of Default—is your best chance to stop foreclosure and preserve your options. From your first missed payment, foreclosure can take as little as 4–6 months. Acting early gives you more control.

First Things First: Don’t Panic—Take Action

The biggest mistake you can make is ignoring the problem. Many homeowners feel embarrassed or overwhelmed and delay reaching out for help. But by acting early, you may have more options than you think.

Here’s where to start:

• Open and respond to all mail from your lender
• Call your loan servicer to ask about hardship options
• Keep records of every communication

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How to Stop Foreclosure in California: Your Options

Depending on your situation—your income, the condition of your home, and whether you want to keep it—there are several paths to stopping foreclosure. Let’s break down the most effective options.

✅ Reinstatement

If you’re able to come up with the full amount owed (missed payments, late fees, and legal costs), you can bring the loan current and stop the foreclosure altogether. This is often possible with:

• Tax refunds
• Bonuses
• Retirement withdrawals
• Borrowing from friends/family

✅ Loan Modification

You can apply to change the terms of your loan to make it more affordable. This may include:

• Lowering the interest rate
• Extending the loan term
• Rolling missed payments into the new balance

This is a permanent change and requires you to show income documentation and a hardship letter.

✅ Forbearance

If your hardship is temporary, your lender might offer a forbearance. This pauses or reduces payments for a short period, giving you time to recover financially. After forbearance, you’ll need a plan to repay the paused amount.

✅ Chapter 13 Bankruptcy

Filing for Chapter 13 triggers an automatic stay, which immediately halts foreclosure. It allows you to repay the missed payments over 3–5 years, giving you a second chance to keep your home. This option requires income and legal counsel.

✅ Sell the Home Before Foreclosure

If keeping the home isn’t possible or practical, selling it before the auction is a powerful way to stop foreclosure and protect your credit. You may still have equity that you can walk away with.

Two Ways to Sell:

1. Traditional Realtor Sale – Good for homes in great condition and if you have time.
2. Sell to a Cash Buyer (Like Us) – Ideal if you:
   • Need to sell quickly
   • Don’t want to make repairs
   • Are already in default

💡 We work with lenders, stop foreclosure auctions, and can close in as little as 7 days.

Real-Life Example: How We Helped James in Riverside

James was 4 months behind on his mortgage and received a Notice of Trustee Sale. With just 3 weeks until the auction, his real estate agent couldn’t find a buyer fast enough.

He called us at Mrs. Property Solutions. Within 24 hours, we made a fair cash offer and began working directly with his lender. We successfully postponed the auction and closed the sale—James walked away with over $18,000 and no foreclosure on his record.

How to Prevent Foreclosure in the Future

Once you’ve overcome the immediate threat of foreclosure, it’s important to set yourself up for long-term stability. The truth is, many homeowners who avoid foreclosure once may end up back in the same position if they don’t make some key financial and lifestyle changes.

Here are several proactive steps you can take to safeguard your home and financial health moving forward:

• Create and follow a realistic monthly budget: Track your income and expenses carefully. Make sure your mortgage is your top priority each month, and look for areas where you can reduce unnecessary spending. Budgeting apps or working with a financial coach can help keep you accountable.
• Set up automatic payments: Automating your mortgage payments ensures that you never miss a due date due to forgetfulness or disorganization. Just make sure the money is available in your account before the withdrawal.
• Build a financial cushion: Life happens—job loss, medical issues, or unexpected repairs can derail your finances quickly. Aim to build a 3–6 month emergency fund that covers your essential expenses, including your mortgage.
• Consider refinancing when appropriate: If interest rates drop or your financial situation improves, refinancing your mortgage could reduce your monthly payment or shorten your loan term—freeing up money and lowering your risk.
• Keep an open line of communication with your lender: If you foresee any difficulty making payments in the future, reach out to your lender early. They often have programs or temporary relief options that can help you avoid falling behind.
• Avoid high-risk financial behavior: Try to limit new debt, avoid co-signing for others, and be cautious about making large financial commitments that could stretch your budget too thin.

Staying on top of your finances and maintaining a proactive mindset is the best way to avoid foreclosure in the long run. And remember, if challenges arise again, don’t wait—reach out for help early.

California Resources for Stopping Foreclosure

• California Mortgage Relief Program
  camortgagerelief.org – Up to $80K in grant assistance for qualified homeowners
• HUD-Approved Housing Counselors
  hud.gov/counseling – Free guidance on budgeting, loan options, and foreclosure alternatives
• California Homeowner Bill of Rights
  Ensures fair treatment and prevents dual tracking (foreclosure while applying for help)
• Legal Aid Services
  Nonprofit law groups offer free or low-cost help in foreclosure cases

Frequently Asked Questions (FAQ)

What is the simplest solution for a foreclosure?

If you act early, selling the home—especially to a cash buyer—is often the simplest and cleanest way to avoid foreclosure and protect your credit.

How do you turn around a foreclosure?

You can stop foreclosure by catching up on payments, modifying the loan, applying for forbearance, filing bankruptcy, or selling the home before auction.

What is the 37 day rule for foreclosure?

Servicers must give homeowners 37 days to apply for loss mitigation (like a loan mod or short sale) before a foreclosure sale can be scheduled.

How to help someone facing foreclosure?

Support them emotionally, encourage them to contact their lender, and guide them to reputable resources. You can also help them explore fast sale options.

What is the 120 day foreclosure rule?

Federal law requires lenders to wait 120 days after the first missed payment before officially starting the foreclosure process.

Do I still owe money if my house is foreclosed?

In most California non-judicial foreclosures, lenders can’t pursue you for the unpaid balance. This is thanks to California’s anti-deficiency laws.

Need Help Stopping Foreclosure?

Foreclosure is scary—but you don’t have to face it alone. At Mrs. Property Solutions, we help California homeowners stop foreclosure quickly, legally, and with dignity.

Whether you want to stay in your home or sell before the auction, we’re here to help you find the right path.

📞 Call or text us at (602) 376-8391 or fill out our form to get started:

The sooner you act, the more options you have. Let’s stop foreclosure together!