What Happens After Receiving a Notice of Default?

2026 California Guide for Los Angeles County Homeowners

By Andrea Pazmino-Pace, REALTOR®
HomeSmart Realty Group | (626) 590-1289 | AskAndreaHomes.com
Updated September 2026

Quick answer

After receiving a Notice of Default in California, the homeowner enters the formal foreclosure process, but the property is not immediately sold and the homeowner has not yet been evicted.

In a typical California nonjudicial foreclosure, at least three months must generally pass after the Notice of Default is recorded before a Notice of Trustee’s Sale can be issued. The sale notice must then generally provide at least 20 days’ notice before the scheduled auction.

During this period, the homeowner may still have options, including reinstating the mortgage, requesting loss-mitigation assistance, applying for a loan modification, negotiating another arrangement, or selling the property before the foreclosure sale.

Deadlines and protections depend on the loan, servicer, property, application history, bankruptcy status, and other circumstances. A homeowner facing foreclosure should obtain guidance from the mortgage servicer, a HUD-approved housing counselor, and, when appropriate, a California attorney.

What is a Notice of Default?

A Notice of Default, commonly called an NOD, is a document stating that the borrower has defaulted on the obligations secured by the property.

For most homeowners, the default involves missed mortgage payments. It may also include late fees, escrow shortages, advances, or other amounts authorized by the loan documents.

Recording the NOD normally begins California’s formal nonjudicial foreclosure process. The document generally identifies:

• The mortgage or deed of trust

• The nature of the default

• The approximate amount required to bring the account current

• The trustee or servicer

• Information about the borrower’s rights and available assistance

An NOD is serious, but it is not the same as a completed foreclosure sale.

Does a Notice of Default mean you have already lost your home?

No.

The homeowner normally continues to own and occupy the property after an NOD is recorded. Ownership does not ordinarily transfer until a trustee’s sale is completed and the trustee’s deed is issued.

However, ignoring the notice can allow the foreclosure to move forward. The available time should be used immediately to verify the debt, investigate every possible solution, and prepare a backup plan.

How long after missed payments can foreclosure begin?

Federal mortgage-servicing rules generally prevent a servicer from making the first notice or filing required for foreclosure until the mortgage is more than 120 days delinquent. Certain exceptions exist, including some due-on-sale violations and actions involving another lienholder.

California law also generally requires a mortgage servicer to contact, or make specified efforts to contact, the borrower before recording an NOD to discuss the financial situation and possible alternatives.

These protections do not mean every borrower receives exactly 120 additional days after an NOD. The 120-day federal period usually occurs before the formal foreclosure filing.

California foreclosure timeline after a Notice of Default

A typical California nonjudicial foreclosure may proceed as follows:

Stage	General timing
Mortgage delinquency	Missed payments and collection communications begin
Pre-foreclosure contact	Servicer generally discusses available options or attempts contact
Notice of Default	Recorded in the county where the property is located
Waiting period	Generally at least three months after recording the NOD
Notice of Trustee’s Sale	Recorded, posted, mailed, and published as required
Scheduled trustee’s sale	Generally no sooner than 20 days after the sale notice
Trustee’s sale	Property may be sold to a bidder or revert to the lender
Post-sale possession	The new owner may begin the applicable possession or eviction process

This is a general timeline, not a guaranteed schedule. A sale may be postponed, canceled, restrained by a court, or affected by a loss-mitigation review or bankruptcy proceeding.

What should you do immediately after receiving an NOD?

1. Confirm that the notice is legitimate

Compare the loan number, property address, trustee information, servicer, and recording information with your own records.

Los Angeles County’s Enhanced Homeowner Notification Program sends homeowners copies of certain recorded documents, including Notices of Default and Notices of Sale, so they can identify potential fraud.

Do not rely on unsolicited callers or mailers claiming that they can “erase” the foreclosure.

2. Call your mortgage servicer

Use the telephone number on a trusted mortgage statement or the servicer’s official website.

Ask for:

• The total amount past due

• A written reinstatement quote

• A payoff statement, if you are considering selling

• The assigned foreclosure trustee

• The current foreclosure status

• The deadline for submitting a loss-mitigation application

• A list of available retention and exit options

• Confirmation of whether a trustee’s sale has been scheduled

Keep a log containing the date, time, representative’s name, telephone number, and summary of every conversation.

3. Review the NOD carefully

Check:

• The recording date

• The amount claimed

• The property address

• The borrower’s name

• The trustee’s name and contact information

• Instructions for requesting the amount needed to cure the default

A mistake does not automatically stop a foreclosure. Disputes should be raised promptly and documented in writing.

4. Gather your financial documents

The servicer may request:

• Recent pay stubs

• Bank statements

• Tax returns

• Profit-and-loss statements

• A hardship explanation

• Mortgage statements

• Property-tax and insurance information

• Household expense information

• Benefit or retirement statements

Submitting an incomplete application can delay review and may reduce the protections available as a sale approaches.

5. Contact a legitimate housing counselor

The Los Angeles County Department of Consumer and Business Affairs provides free foreclosure-prevention assistance to eligible homeowners and small landlords. Its counselors can help homeowners understand the process, communicate with their lender, prepare documents, and avoid scams.

• Los Angeles County DCBA: 800-593-8222

• Email: homehelp@dcba.lacounty.gov

• HUD housing-counselor referral: 800-569-4287

HUD states that foreclosure counseling through participating agencies is free.

What options may be available after an NOD?

Reinstate the mortgage

Reinstatement means paying the amount necessary to bring the loan current, including authorized costs and fees.

California borrowers generally retain a statutory right to reinstate until five business days before the scheduled foreclosure sale. Because the exact calculation and deadline can be disputed, request a current written quote directly from the servicer or trustee.

Repayment plan

A repayment plan may allow the borrower to pay the regular monthly payment plus part of the past-due balance over an agreed period.

This option generally requires enough income to afford the increased temporary payment.

Forbearance

Forbearance may temporarily reduce or suspend payments. The missed amounts are not automatically forgiven and must usually be addressed through a repayment plan, modification, deferral, or another arrangement.

Loan modification

A modification changes one or more loan terms. Depending on the applicable program, it may:

• Extend the repayment period

• Change the interest rate

• Add past-due amounts to the balance

• Defer part of the balance

• Adjust the monthly payment

Approval is not guaranteed. Submit every requested document promptly and keep proof of delivery.

Refinance

Refinancing may be possible when the homeowner has sufficient income, equity, credit, and time. An NOD and mortgage delinquency can make conventional financing difficult, so compare costs carefully and avoid predatory loans.

Sell the home before the trustee’s sale

A traditional sale may allow the homeowner to:

• Pay the mortgage and other liens

• Avoid a completed foreclosure

• Protect some remaining equity

• Control the moving schedule

• Choose the buyer

• Pay ordinary selling expenses through escrow

Selling after an NOD requires realistic pricing and close coordination among the homeowner, real estate agent, escrow company, title company, servicer, and foreclosure trustee.

The sale must normally close before the foreclosure auction unless the lender or trustee confirms a postponement.

Short sale

If the property is worth less than the total debt and selling expenses, the homeowner may request approval for a short sale.

The lender is not required to approve it. The homeowner should also obtain legal and tax advice regarding possible deficiency, forgiven debt, junior liens, and tax consequences.

Deed in lieu of foreclosure

With lender approval, a homeowner may voluntarily transfer the property to the lender. Junior liens, title problems, occupancy, and investor rules can affect eligibility.

Bankruptcy

Filing bankruptcy may create an automatic stay that temporarily stops certain collection and foreclosure actions. Bankruptcy has major legal and financial consequences and should be discussed with a qualified bankruptcy attorney.

A bankruptcy filing does not automatically eliminate a valid mortgage lien or guarantee that the homeowner can retain the property.

Can the lender continue foreclosure during a loan-modification review?

Federal and California laws may restrict “dual tracking,” which generally refers to moving a foreclosure forward while a complete loss-mitigation application is being evaluated.

The protections depend on several factors, including:

• When the complete application was received

• How close the property is to the sale date

• Whether the borrower previously received a review

• Whether the borrower accepted or rejected an offer

• Whether the borrower complied with an existing agreement

• Whether an exception applies

Submitting an application does not automatically cancel a sale. Homeowners should obtain written confirmation of the application’s completeness and the current sale status.

When is the Notice of Trustee’s Sale issued?

In a standard California nonjudicial foreclosure, the trustee generally cannot give notice of sale until at least three months after recording the NOD.

The Notice of Trustee’s Sale identifies information such as:

• The auction date

• The time and location

• The trustee

• The unpaid balance

• Instructions for obtaining sale-status information

The notice must generally be provided at least 20 days before the scheduled sale. Verify postponements directly with the trustee because online information may not immediately reflect last-minute changes.

Can you sell after receiving a Notice of Trustee’s Sale?

Potentially, yes, but the timeline becomes much more difficult.

A real estate sale requires time for title review, disclosures, inspections, buyer financing, payoff demands, and escrow. A signed purchase contract does not automatically stop the trustee’s sale.

The lender or trustee should confirm any postponement in writing or through its authorized sale-information system.

What happens at the foreclosure auction?

At the trustee’s sale:

• Qualified bidders may bid on the property

• The successful bidder must satisfy the trustee’s payment requirements

• If no third party submits an acceptable bid, the property may return to the lender

• The trustee may issue a trustee’s deed to the successful purchaser

Once the sale is completed, the former homeowner may lose ownership rights. Post-sale challenges can be difficult, expensive, and highly fact-specific.

What happens after the foreclosure sale?

After a completed sale, the purchaser may request possession. If the occupants do not leave voluntarily, the new owner may begin the legally required eviction or unlawful-detainer process.

The purchaser cannot simply remove occupants, change locks while they remain legally in possession, or discard their belongings without following applicable law.

Former owners and tenants can have different rights. Anyone receiving a post-sale notice should consult a qualified attorney or legal-aid organization immediately.

Will an NOD affect your credit?

Missed mortgage payments may be reported before the NOD is recorded. A completed foreclosure can cause additional and long-lasting credit consequences.

Selling before the foreclosure is completed does not erase accurate reports of earlier late payments, but it may prevent the account from being reported as a completed foreclosure.

Credit reporting depends on the creditor, loan resolution, and reporting history.

Can you recover equity by selling?

Possibly.

Estimated equity should be calculated using:

Expected sale price − mortgage payoff − junior liens − taxes − assessments − selling expenses − other title obligations

Online home-value estimates are not enough. A comparative market analysis, preliminary title report, and written payoff statements are needed to estimate whether proceeds may remain.

Warning signs of a foreclosure-rescue scam

Be cautious when someone:

• Guarantees that the foreclosure will be stopped

• Tells you to stop communicating with the servicer

• Requests that mortgage payments be sent to a third party

• Pressures you to sign over title

• Asks you to sign documents you do not understand

• Claims affiliation with the government without proof

• Demands large advance fees

• Offers to buy the home without explaining the price and terms

• Says you can remain indefinitely after transferring ownership

Los Angeles County offers free foreclosure-prevention counseling and scam assistance through DCBA.

Frequently asked questions

How much time do I have after receiving an NOD?

California generally requires at least three months between the recording of the NOD and the next formal sale-notice stage. A sale notice must then generally precede the auction by at least 20 days. Do not assume this provides a full four months to resolve the problem.

Can I stay in my house after receiving an NOD?

Generally, yes. An NOD does not itself transfer ownership or authorize an immediate eviction.

Can I make one payment to stop foreclosure?

Not necessarily. After acceleration or formal default, the servicer may require the full reinstatement amount rather than one regular payment.

Does applying for a modification automatically stop the sale?

No. Legal protections may apply to certain complete and timely applications, but submitting paperwork does not by itself prove that a sale has been canceled.

Can a REALTOR® give me legal advice?

No. A real estate professional can provide market information, estimate a possible selling timeline, coordinate a sale, and help analyze comparable properties. Legal questions should be directed to a qualified attorney.

Is the Notice of Default public?

Yes. The NOD is generally recorded in the county’s real property records. That is why homeowners may begin receiving calls, letters, and purchase offers.

Conclusion

Receiving a Notice of Default in California starts a serious legal process, but it does not mean the home will be sold immediately.

The most important steps are to verify the notice, contact the mortgage servicer, request written reinstatement and payoff information, seek free housing counseling, and compare every available option before the deadlines expire.

If selling is one of the options you are considering, an early property-value and equity analysis can show whether a conventional sale may pay the liens and preserve part of your equity.

Andrea Pazmino-Pace, REALTOR®
HomeSmart Realty Group
Phone: (626) 590-1289
Website: AskAndreaHomes.com

This article provides general educational information and is not legal, tax, credit, bankruptcy, foreclosure, or financial advice. Laws and individual loan circumstances vary. Consult the mortgage servicer, a HUD-approved housing counselor, and qualified legal and tax professionals.

Official sources: California Civil Code foreclosure provisions, CFPB mortgage-servicing regulation, CFPB foreclosure timeline, Los Angeles County foreclosure prevention, and HUD housing counseling.