The California trustee sale, and the 45 days after it
How a California trustee sale runs: the notice of default, the 20-day notice of sale, payment in full at the auction, the 67% first-sale floor and the 45 days after it.
Blog · Investing
45 days
A California trustee sale of a one-to-four-unit home is not final at the auction: eligible bidders have 15 days to give notice and until day 45 to outbid the winner.
Key takeaways
- A California trustee sale comes at least three months after the notice of default is recorded, and at least 20 days after the notice of sale is posted, published and recorded. The borrower can reinstate until five business days before the sale.
- The sale is held in the county where the property is, at auction, between 9 a.m. and 5 p.m. on a business day. The trustee can require every bidder to show the funds before bidding, and the winner to pay the full bid in cash or by cashier's check as the hammer falls. Only the lender bids with the debt.
- Since January 1, 2025, a home of up to four units under a first deed of trust cannot sell at its first sale for less than 67% of a fair market value the lender gives the trustee. If nobody bids that much, the sale moves at least seven days and the floor falls away.
- A sale of a one-to-four-unit home is not final at the hammer unless the winner is a prospective owner-occupant. Tenants, owner-occupants, housing nonprofits and public bodies have 15 days to send a bid or notice of intent, and those who do can outbid the winner until day 45. Title stays with the borrower until then.
- Section 2924m, which sets those windows, runs until January 1, 2031. Guides that say it ended on January 1, 2026 predate a 2022 amendment that extended it.
A California foreclosure under a deed of trust ends at a trustee's sale: a public auction run by the trustee, with no judge involved. Our records hold 2,413 upcoming California sales in 55 counties. The rules for those sales are in sections 2924 to 2924o of the Civil Code, and two recent laws changed them: a floor of 67 percent of the home's value at the first sale since January 1, 2025, and a post-auction window for tenants, owner-occupants and nonprofits that now runs to 2031. This article sets the rules out in the order a sale meets them, each quoted from the statute.
Who runs the sale
A California trustee's sale is run by the trustee named in the deed of trust or by a substitute the lender records, not by a court or a county officer.
The lender can replace the trustee at any time: a trustee "may be substituted by the recording in the county in which the property is located of a substitution executed and acknowledged by" the beneficiary [1]. Most California sales are run by trustee companies, whose names are printed at the foot of each notice; trustee firms lists the ones in our records, and what a trustee actually does explains the role. The trustee's own job is narrow: give the notices, hold the auction, take the money and deliver the deed.
The notice of default and the three months
A California sale cannot be noticed until at least three months after a notice of default is recorded, and the borrower can reinstate the loan until five business days before the sale.
The notice of default. The foreclosure starts when the trustee, lender or their agent "shall first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default" [2]. For a first loan on an owner-occupied home of up to four units [3], the servicer must first contact the borrower about alternatives and can record the notice only "30 days after initial contact is made as required by paragraph (2) or 30 days after satisfying the due diligence requirements" [4]. A federal rule usually comes first: for most home loans, no foreclosure notice or filing may be made until the loan is more than 120 days delinquent [5].
The three months. Then the clock runs: "Not less than three months shall elapse from the filing of the notice of default." [6] Only "after the lapse of the three months described in paragraph (2)" can the trustee "give notice of sale, stating the time and place thereof" [7]. The trustee may record the notice of sale up to five days early, "provided that the date of sale is no earlier than three months and 20 days after the recording of the notice of default" [8]. On a typical home loan, then, the earliest California sale comes about seven and a half months after the first missed payment.
Reinstatement. Until late in the process the borrower can stop the sale by catching up on the arrears and costs rather than paying the whole loan. The right lasts "until five business days prior to the date of sale set forth in the initial recorded notice of sale" [9], and a postponement of more than five business days brings it back: "the right of reinstatement is revived as of the date of postponement and shall continue from that date until five business days prior to the date of sale declared at the time of the postponement" [10]. A sale on the calendar can therefore disappear in the last week, even after earlier postponements.
The notice of sale: posted, published and recorded
The notice of sale must be posted in a public place and on the property, published once a week for three weeks, and recorded, each at least 20 days before the sale.
Section 2924f sets four steps, each with the same 20-day lead:
- Posted in public, "at least 20 days before the date of sale in one public place in the city where the property is to be sold" [11], or otherwise in the county seat.
- Published, "once a week for three consecutive calendar weeks" [12], with "The first publication to be at least 20 days before the date of sale, in a newspaper of general circulation published in the public notice district in which the property or some part thereof is situated" [13].
- Posted on the property: "A copy of the notice of sale shall also be posted in a conspicuous place on the property to be sold at least 20 days before the date of sale" [14].
- Recorded "with the county recorder of the county in which the property or some part thereof is situated at least 20 days prior to the date of sale" [15].
The publication is where most bidders first see a sale, and it is one of the places our records come from. A California notice we hold first appears in print a median of 22 days before its sale, so the 20-day minimum is close to what bidders actually get. California trustee sale laws keeps the observed figure beside the statutory one.
What the notice states, and what it does not. The notice gives "a statement of the total amount of the unpaid balance of the obligation secured by the property to be sold and reasonably estimated costs, expenses, advances at the time of the initial publication of the notice of sale" [16]. That is the debt, not the opening bid, which the lender sets for the auction and which can be lower. The notice of trustee's sale decoder reads the rest of a notice line by line.
Three notices printed on every home sale. When the property has one to four single-family residences, "the notice of sale shall contain substantially the following language" [17]: three short notices whose wording the statute fixes. The one to potential bidders is the best summary of the risk in the whole code: "You will be bidding on a lien, not on the property itself. Placing the highest bid at a trustee auction does not automatically entitle you to free and clear ownership of the property." [18] The notice to tenants explains the post-auction rights described below: "If you are an “eligible tenant buyer,” you can purchase the property if you match the last and highest bid placed at the trustee auction. If you are an “eligible bidder,” you may be able to purchase the property if you exceed the last and highest bid placed at the trustee auction." [19]
Because the statute requires that notice only on one-to-four-unit property, its presence is a good marker of a sale the 45-day window will apply to. 95% of the 2,725 California notices of trustee's sale we hold print it.
Postponements, and the new 45-day listing delay
A California sale can be postponed for up to 365 days in total, each move announced at the sale, and since 2025 an owner who lists the home with a broker in time can delay the sale 45 days once.
Ordinary postponements. A sale can be postponed "at any time prior to the completion of the sale for any period of time not to exceed a total of 365 days from the date set forth in the notice of sale" [20], and each one is announced in public: "The notice of each postponement and the reason therefor shall be given by public declaration by the trustee at the time and place last appointed for sale." [21] The trustee must keep a sale line or website with "up-to-date information regarding sale dates and postponements" [22], but the statutory notice itself tells owners that "The best way to verify postponement information is to attend the scheduled sale." [23] A postponement also wipes the slate: "Any postponement or discontinuance of the sale proceedings shall be a cancellation of the last bid." [24] Trustee sale postponements sets California's limits beside every other state's.
The listing and purchase-agreement delays. AB 2424 added two postponements an owner can trigger on a home of up to four units [25]. If the trustee receives, at least five business days before the sale, "a listing agreement with a California licensed real estate broker to be placed in a publicly available marketing platform for the sale of the property at least five business days before the scheduled date of sale" [26], then "a sale of the property under the power of sale shall not be conducted until the expiration of an additional 45 days following the scheduled date of sale" [27]. If a buyer is then found and a purchase agreement reaches the trustee in time, "the trustee shall postpone the scheduled date of sale to a date that is at least 45 days after the date on which the purchase agreement was received by the trustee" [28]. Each can be used once: "The provisions of this paragraph shall not be used to postpone the scheduled sale date more than once." [29] For a bidder, a home that shows up on the market shortly before its sale date is a home whose sale has likely moved.
Where and when the auction is held
The auction is held in the county where the property is, at the place the notice names, between 9 a.m. and 5 p.m. on a business day, with each property bid on separately.
A sale "shall be held in the county where the property or some part thereof is situated" [30], and "shall be made at auction, to the highest bidder, between the hours of 9 a.m. and 5 p.m. on any business day, Monday through Friday" [31]. The notice names the exact spot, usually outside a courthouse or civic center: notices in our records set sales at a courthouse's side exit, at the bottom of a building's stairway, or on the grass beside a civic center. When one trustee sets several sales for the same time and place, "each subsequent sale shall take place as soon as possible after the preceding sale has been completed" [32], and no lots are combined: "a trustee shall not bundle properties for the purpose of sale and each property shall be bid on separately" [33].
Unlike Texas, which sells on one day a month, California can sell on any business day, so a county's sales are spread across the month rather than gathered into one session.
The 67 percent floor at the first sale
At the first sale of a home of up to four units under a first deed of trust, the trustee may not accept less than 67 percent of a fair market value the lender supplies; if no one bids that much, the sale moves at least seven days and the floor no longer applies.
This rule is recent. AB 2424 prohibits "the trustee from selling the property at the initial trustee’s sale for less than 67% of the amount of that fair market value of the property" [34], and it took effect on January 1, 2025 [35]. It covers "residential real property containing no more than four dwelling units that is subject to a power of sale contained in a first lien deed of trust or mortgage" [36].
How it works. The lender "shall provide to the trustee a fair market value of the property at least 10 days prior to the initially scheduled date of sale" [37], and "the trustee shall not sell the property at the first sale at which a bid can be made for less than 67 percent of that fair market value of the property" [38]. The value has to be recent, within six months of the first sale date, and can be "determined by an opinion of a licensed real estate broker, an appraisal from a licensed appraiser, a value from a commercially utilized automated valuation model" [39], among others. If no bid reaches the floor, "then the trustee shall postpone the sale for at least seven days, and the property may be sold to the highest bidder" [40].
What it means for a bidder. At a first sale, a winning bid can be no lower than two-thirds of the lender's valuation, so a first sale cannot produce a deep discount. The lender's own credit bid is capped at what it is owed, so when the debt is small next to the home's value, the first sale can pass with no sale at all. The second sale, a week or more later, has no floor. The trustee "shall not have a duty to verify the source or accuracy of the valuation" [41], and a mistake does not undo a sale: "A failure to comply with the provisions of paragraph (1) shall not affect the validity of a trustee’s sale or a sale to a bona fide purchaser for value." [42]
Bidding and paying
Every bid is irrevocable, and the trustee can require proof of funds before recognizing a bid and the full amount, in cash or certified funds, when the hammer falls; only the lender bids with the debt.
Bids bind. Each bid "shall be deemed to be an irrevocable offer by that bidder to purchase the property being sold by the trustee under the power of sale for the amount of the bid" [43].
Funds before bidding. The trustee may require "Every bidder to show evidence of the bidder’s ability to deposit with the trustee the full amount of their final bid in cash, a cashier’s check drawn on a state or national bank" [44], or the credit-union, savings-institution or cash-equivalent instruments the statute lists. The winner can be required to hand over the full amount "immediately prior to the completion of the sale, the completion of the sale being so announced by the fall of the hammer or in another customary manner" [45]. The statute has no deposit-and-balance scheme like Arizona's, so expect to pay the whole bid at the sale, with no time to arrange a loan. Bidders usually bring several cashier's checks; the cashier's check calculator works out a set that pays any winning bid up to your maximum.
The lender's advantage. "The present beneficiary of the deed of trust under foreclosure shall have the right to offset their bid or bids only to the extent of the total amount due the beneficiary including the trustee’s fees and expenses." [46] Everyone else bids money.
If the winner does not pay. A winner who fails to deliver the bid "shall be liable to the trustee for all damages which the trustee may sustain by the refusal to deliver to the trustee the amount of the final bid" [47], and one who does so willfully, or stops payment on a cashier's check, "shall be guilty of a misdemeanor punishable by a fine of not more than two thousand five hundred dollars ($2,500)" [48]. Agreements among bidders are a crime too: it is unlawful "to fix or restrain bidding in any manner, at a sale of property conducted pursuant to a power of sale in a deed of trust or mortgage" [49].
The 15 and 45 days after the sale
A trustee's sale of a one-to-four-unit home is final at the auction only if a prospective owner-occupant wins; otherwise it becomes final after 15 days, or after 45 if a tenant, owner-occupant, nonprofit or public body sends a notice of intent, and those who do can match or beat the winning bid in that time.
A sale "on real property containing one to four residential units pursuant to Section 2924g shall not be deemed final until the earliest of the following" [50], and until it is, the auction winner does not own the property: "Title to the property shall remain with the mortgagor or trustor or successor in interest until the property sale is deemed final as provided in this section." [51]
When the winner is an owner-occupant. A prospective owner-occupant is a person who swears that "They will occupy the property as their primary residence within 60 days of the trustee’s deed being recorded." [52] and "They will maintain their occupancy for at least one year." [53], and who is not "(i) The mortgagor or trustor. (ii) The child, spouse, or parent of the mortgagor or trustor." [54] nor buying for anyone else: "They are not acting as the agent of any other person or entity in purchasing the real property." [55] If such a person wins, the sale is final once the usual conditions are met, provided "The prospective owner-occupant shall submit to the trustee the affidavit or declaration described in paragraph (1) of subdivision (a) at the trustee’s sale or to the trustee by 5 p.m. on the next business day following the trustee’s sale." [56]
Otherwise, the windows open. Within two days the trustee publishes the result: "Not later than 48 hours after the trustee’s sale of property under Section 2924g, the trustee or an authorized agent shall post on the internet website set forth on the notice of sale" [57] the sale date, the last and highest bid and an address for bids. Then:
- Day 15. The sale becomes final "Fifteen days after the trustee’s sale unless at least one eligible tenant buyer or eligible bidder submits to the trustee either a bid pursuant to paragraph (3) or (4) or a nonbinding written notice of intent to place such a bid." [58] The bid or notice must "Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale" [59], and "Be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date." [60]
- The tenants' match. Eligible tenant buyers are people "occupying the real property under a rental or lease agreement entered into as the result of an arm’s-length transaction with the mortgagor or trustor" [61] before the notice of default. They win by matching, not beating, the auction: when "a representative of all of the eligible tenant buyers submits to the trustee a bid in an amount equal to the full amount of the last and highest bid at the trustee’s sale" [62], in cash or cashier's check.
- Day 45. Other eligible bidders must beat it. The sale stays open until "Forty-five days after the trustee’s sale, except that during the 45-day period, an eligible bidder may submit to the trustee a bid in an amount that exceeds the last and highest bid at the trustee’s sale" [63], for a bidder that sent its notice of intent by day 15. Each sends one figure, which must "Be limited to a single bid amount and not contain instructions for successive bid amounts." [64], and at 5 p.m. on day 45 "the eligible bidder that submitted the highest bid shall be deemed the last and highest bidder pursuant to the power of sale" [65].
Who counts as an eligible bidder. Besides tenants and owner-occupants, the list covers housing nonprofits based in California, for which "One of its primary activities is the development and preservation of affordable rental or home ownership housing in California." [66], community land trusts, limited-equity cooperatives, and "The state, the Regents of the University of California, a county, city, district, public authority, or public agency" [67]. A nonprofit or public buyer takes the home under a recorded affordability covenant "for lower income households for 30 years from the date the trustee’s deed is issued" [68].
When the deed is recorded. Outside section 2924m, a sale "shall be deemed final upon the acceptance of the last and highest bid, and shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee’s deed is recorded within 21 calendar days after the sale" [69]. When an eligible bidder has sent a notice of intent, the deadline stretches to 60 days: the sale "shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee’s deed is recorded within 60 calendar days after the sale" [70].
It is not going away soon. The original law, from 2020, ran only "until January 1, 2026" [71], which is why some guides still describe it as expired. In 2022 AB 1837 extended "its operation and the operation of the related provisions described above until January 1, 2031" [72], and the current text says the same: "This section shall remain in effect only until January 1, 2031" [73].
For a bidder, this means money committed for up to 45 days with no title, and a win that a higher eligible bid can still take. How to buy at a trustee sale compares the window with the finality rules in other states.
After the sale: deed, proceeds, deficiency and possession
The trustee's deed is conclusive for a good-faith buyer, any surplus goes to junior lienholders and then the former owner, the lender cannot sue for a deficiency, and occupants are removed by notice and, if needed, an eviction case.
The deed. The deed's recitals that the notices were given are "conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value and without notice" [74]. That protects the buyer against a defect in the notices, not against senior liens. A sale under a second deed of trust leaves the first in place, as the notice itself warns: "You should also be aware that the lien being auctioned off may be a junior lien. If you are the highest bidder at the auction, you are or may be responsible for paying off all liens senior to the lien being auctioned off, before you can receive clear title to the property." [75]
The proceeds. The trustee distributes the money "in the following order of priority" [76]: the costs of sale, the foreclosed debt, then "To satisfy the outstanding balance of obligations secured by any junior liens or encumbrances in the order of their priority." [77], and finally "To the trustor or the trustor’s successor in interest." [78] When there is a surplus, the trustee writes to everyone with a recorded interest within 30 days of the deed [79]. What happens after a trustee sale follows a surplus claim from start to finish.
No deficiency. After a sale under a deed of trust's power of sale, "no deficiency shall be owed or collected, and no deficiency judgment shall be rendered" [80], so a low price costs the borrower nothing more.
Possession. A former owner who stays can be removed by an eviction case "after a three-day written notice to quit the property has been served upon the person" [81], which covers property "sold in accordance with Section 2924 of the Civil Code, under a power of sale contained in a deed of trust" [82]. Tenants get more. A month-to-month tenant "shall be given 90 days’ written notice to quit pursuant to Section 1162 before the tenant or subtenant may be removed from the property" [83], and a tenant under a fixed-term lease made before the sale "shall have the right to possession until the end of the lease term" [84], unless, among other exceptions, "The purchaser or successor in interest will occupy the housing unit as a primary residence." [85] Local rules can add to these: "Nothing in this section is intended to affect any local just cause eviction ordinance." [86]
Before you bid in California
- Find the lien position. A title search shows whether the deed of trust being foreclosed is a first or a junior lien, and what survives it.
- Call the sale line the day before and the morning of the sale. Postponements are announced at the sale, the trustee's line can lag, and a listing agreement can move a home's sale 45 days.
- Ask for the opening bid. The notice gives the debt. The lender's opening bid comes later and can be much lower, and at a first sale of a home the trustee cannot sell for less than 67 percent of the lender's valuation.
- Bring certified funds for your maximum. The full price is due when the hammer falls.
- Count the units. On one to four units, plan to have your money committed for up to 45 days without title, and to lose the property if an eligible bidder outbids you.
- Check who lives there. A tenant with a lease made before the sale can stay to its end unless you will live in the home, and a month-to-month tenant is owed 90 days' notice.
Upcoming sales, county by county, are on California trustee sales; trustee sale laws by state compares California's rules with the other states we cover.
Sources
86 primary- [1]Cal. Civ. Code § 2934a(a)(1) — California Legislature“may be substituted by the recording in the county in which the property is located of a substitution executed and acknowledged by”
- [2]Cal. Civ. Code § 2924(a)(1) — California Legislature“shall first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default”
- [3]Cal. Civ. Code § 2924.15(a) — California Legislature“shall apply only to a first lien mortgage or deed of trust that is secured by owner-occupied residential real property containing no more than four dwelling units”
- [4]Cal. Civ. Code § 2923.5(a)(1)(A) — California Legislature“Either 30 days after initial contact is made as required by paragraph (2) or 30 days after satisfying the due diligence requirements as described in subdivision (e).”
- [5]12 CFR § 1024.41(f)(1) — Consumer Financial Protection Bureau“A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: (i) A borrower's mortgage loan obligation is more than 120 days delinquent”
- [6]Cal. Civ. Code § 2924(a)(2) — California Legislature“Not less than three months shall elapse from the filing of the notice of default.”
- [7]Cal. Civ. Code § 2924(a)(3) — California Legislature“after the lapse of the three months described in paragraph (2), the mortgagee, trustee, or other person authorized to take the sale shall give notice of sale, stating the time and place thereof”
- [8]Cal. Civ. Code § 2924(a)(4) — California Legislature“provided that the date of sale is no earlier than three months and 20 days after the recording of the notice of default”
- [9]Cal. Civ. Code § 2924c(e) — California Legislature“until five business days prior to the date of sale set forth in the initial recorded notice of sale”
- [10]Cal. Civ. Code § 2924c(e) — California Legislature“then the right of reinstatement is revived as of the date of postponement and shall continue from that date until five business days prior to the date of sale declared at the time of the postponement”
- [11]Cal. Civ. Code § 2924f(b)(1) — California Legislature“at least 20 days before the date of sale in one public place in the city where the property is to be sold”
- [12]Cal. Civ. Code § 2924f(b)(1) — California Legislature“publishing a copy once a week for three consecutive calendar weeks”
- [13]Cal. Civ. Code § 2924f(b)(2) — California Legislature“The first publication to be at least 20 days before the date of sale, in a newspaper of general circulation published in the public notice district in which the property or some part thereof is situated”
- [14]Cal. Civ. Code § 2924f(b)(3) — California Legislature“A copy of the notice of sale shall also be posted in a conspicuous place on the property to be sold at least 20 days before the date of sale”
- [15]Cal. Civ. Code § 2924f(b)(4) — California Legislature“be recorded with the county recorder of the county in which the property or some part thereof is situated at least 20 days prior to the date of sale”
- [16]Cal. Civ. Code § 2924f(b)(7) — California Legislature“The notice of sale shall contain a statement of the total amount of the unpaid balance of the obligation secured by the property to be sold and reasonably estimated costs, expenses, advances at the time of the initial publication of the notice of sale”
- [17]Cal. Civ. Code § 2924f(b)(8)(A) — California Legislature“if the deed of trust or mortgage containing a power of sale is secured by real property containing from one to four single-family residences, the notice of sale shall contain substantially the following language”
- [18]Cal. Civ. Code § 2924f(b)(8)(A) — California Legislature“You will be bidding on a lien, not on the property itself. Placing the highest bid at a trustee auction does not automatically entitle you to free and clear ownership of the property.”
- [19]Cal. Civ. Code § 2924f(b)(8)(A) — California Legislature“If you are an “eligible tenant buyer,” you can purchase the property if you match the last and highest bid placed at the trustee auction. If you are an “eligible bidder,” you may be able to purchase the property if you exceed the last and highest bid placed at the trustee auction.”
- [20]Cal. Civ. Code § 2924g(c)(1) — California Legislature“at any time prior to the completion of the sale for any period of time not to exceed a total of 365 days from the date set forth in the notice of sale”
- [21]Cal. Civ. Code § 2924g(d)(1) — California Legislature“The notice of each postponement and the reason therefor shall be given by public declaration by the trustee at the time and place last appointed for sale. A public declaration of postponement shall also set forth the new date, time, and place of sale”
- [22]Cal. Civ. Code § 2924f(b)(8)(B) — California Legislature“A mortgagee, beneficiary, trustee, or authorized agent shall make a good faith effort to provide up-to-date information regarding sale dates and postponements to persons who wish this information.”
- [23]Cal. Civ. Code § 2924f(b)(8)(A) — California Legislature“The best way to verify postponement information is to attend the scheduled sale.”
- [24]Cal. Civ. Code § 2924h(e) — California Legislature“Any postponement or discontinuance of the sale proceedings shall be a cancellation of the last bid.”
- [25]AB 2424 (2024), Legislative Counsel's Digest — California Legislature“This bill would prohibit a foreclosure sale until the expiration of 45 days if the trustee receives, at least 5 business days before the scheduled date of sale, from the mortgagor or trustor a listing agreement for the sale of the property subject to the power of sale”
- [26]Cal. Civ. Code § 2924f(e)(1) — California Legislature“a listing agreement with a California licensed real estate broker to be placed in a publicly available marketing platform for the sale of the property at least five business days before the scheduled date of sale”
- [27]Cal. Civ. Code § 2924f(e)(1) — California Legislature“a sale of the property under the power of sale shall not be conducted until the expiration of an additional 45 days following the scheduled date of sale”
- [28]Cal. Civ. Code § 2924f(e)(3) — California Legislature“the trustee shall postpone the scheduled date of sale to a date that is at least 45 days after the date on which the purchase agreement was received by the trustee”
- [29]Cal. Civ. Code § 2924f(e)(1), (3) — California Legislature“The provisions of this paragraph shall not be used to postpone the scheduled sale date more than once.”
- [30]Cal. Civ. Code § 2924g(a)(1) — California Legislature“shall be held in the county where the property or some part thereof is situated”
- [31]Cal. Civ. Code § 2924g(a)(1) — California Legislature“shall be made at auction, to the highest bidder, between the hours of 9 a.m. and 5 p.m. on any business day, Monday through Friday”
- [32]Cal. Civ. Code § 2924g(a)(3) — California Legislature“each subsequent sale shall take place as soon as possible after the preceding sale has been completed”
- [33]Cal. Civ. Code § 2924g(a)(4) — California Legislature“a trustee shall not bundle properties for the purpose of sale and each property shall be bid on separately”
- [34]AB 2424 (2024), Legislative Counsel's Digest — California Legislature“would prohibit the trustee from selling the property at the initial trustee’s sale for less than 67% of the amount of that fair market value of the property”
- [35]Cal. Civ. Code § 2923.5, history note — California Legislature“Stats. 2024, Ch. 311, Sec. 1. (AB 2424) Effective January 1, 2025.”
- [36]Cal. Civ. Code § 2924f(f)(1) — California Legislature“residential real property containing no more than four dwelling units that is subject to a power of sale contained in a first lien deed of trust or mortgage”
- [37]Cal. Civ. Code § 2924f(f)(1) — California Legislature“shall provide to the trustee a fair market value of the property at least 10 days prior to the initially scheduled date of sale”
- [38]Cal. Civ. Code § 2924f(f)(1) — California Legislature“the trustee shall not sell the property at the first sale at which a bid can be made for less than 67 percent of that fair market value of the property”
- [39]Cal. Civ. Code § 2924f(f)(3) — California Legislature“determined by an opinion of a licensed real estate broker, an appraisal from a licensed appraiser, a value from a commercially utilized automated valuation model”
- [40]Cal. Civ. Code § 2924f(f)(2) — California Legislature“then the trustee shall postpone the sale for at least seven days, and the property may be sold to the highest bidder”
- [41]Cal. Civ. Code § 2924f(f)(1) — California Legislature“The trustee may rely on the fair market value provided pursuant to this paragraph, and shall not have a duty to verify the source or accuracy of the valuation.”
- [42]Cal. Civ. Code § 2924f(f)(4) — California Legislature“A failure to comply with the provisions of paragraph (1) shall not affect the validity of a trustee’s sale or a sale to a bona fide purchaser for value.”
- [43]Cal. Civ. Code § 2924h(a) — California Legislature“shall be deemed to be an irrevocable offer by that bidder to purchase the property being sold by the trustee under the power of sale for the amount of the bid”
- [44]Cal. Civ. Code § 2924h(b)(1) — California Legislature“Every bidder to show evidence of the bidder’s ability to deposit with the trustee the full amount of their final bid in cash, a cashier’s check drawn on a state or national bank”
- [45]Cal. Civ. Code § 2924h(b)(3) — California Legislature“the completion of the sale being so announced by the fall of the hammer or in another customary manner”
- [46]Cal. Civ. Code § 2924h(b) — California Legislature“The present beneficiary of the deed of trust under foreclosure shall have the right to offset their bid or bids only to the extent of the total amount due the beneficiary including the trustee’s fees and expenses.”
- [47]Cal. Civ. Code § 2924h(d) — California Legislature“that bidder shall be liable to the trustee for all damages which the trustee may sustain by the refusal to deliver to the trustee the amount of the final bid”
- [48]Cal. Civ. Code § 2924h(d) — California Legislature“that bidder shall be guilty of a misdemeanor punishable by a fine of not more than two thousand five hundred dollars ($2,500)”
- [49]Cal. Civ. Code § 2924h(g) — California Legislature“to fix or restrain bidding in any manner, at a sale of property conducted pursuant to a power of sale in a deed of trust or mortgage”
- [50]Cal. Civ. Code § 2924m(c) — California Legislature“on real property containing one to four residential units pursuant to Section 2924g shall not be deemed final until the earliest of the following”
- [51]Cal. Civ. Code § 2924m(f) — California Legislature“Title to the property shall remain with the mortgagor or trustor or successor in interest until the property sale is deemed final as provided in this section.”
- [52]Cal. Civ. Code § 2924m(a)(1) — California Legislature“They will occupy the property as their primary residence within 60 days of the trustee’s deed being recorded.”
- [53]Cal. Civ. Code § 2924m(a)(1)(B) — California Legislature“They will maintain their occupancy for at least one year.”
- [54]Cal. Civ. Code § 2924m(a)(1)(C) — California Legislature“(i) The mortgagor or trustor. (ii) The child, spouse, or parent of the mortgagor or trustor.”
- [55]Cal. Civ. Code § 2924m(a)(1)(D) — California Legislature“They are not acting as the agent of any other person or entity in purchasing the real property.”
- [56]Cal. Civ. Code § 2924m(c)(1) — California Legislature“The prospective owner-occupant shall submit to the trustee the affidavit or declaration described in paragraph (1) of subdivision (a) at the trustee’s sale or to the trustee by 5 p.m. on the next business day following the trustee’s sale.”
- [57]Cal. Civ. Code § 2924m(e)(1) — California Legislature“Not later than 48 hours after the trustee’s sale of property under Section 2924g, the trustee or an authorized agent shall post on the internet website set forth on the notice of sale”
- [58]Cal. Civ. Code § 2924m(c)(2) — California Legislature“Fifteen days after the trustee’s sale unless at least one eligible tenant buyer or eligible bidder submits to the trustee either a bid pursuant to paragraph (3) or (4) or a nonbinding written notice of intent to place such a bid.”
- [59]Cal. Civ. Code § 2924m(c)(2) — California Legislature“Be received by the trustee no later than 5 p.m. on the 15th day after the trustee’s sale”
- [60]Cal. Civ. Code § 2924m(c)(2)(A) — California Legislature“Be sent to the trustee by certified mail, overnight delivery, or another method that allows for confirmation of the delivery date.”
- [61]Cal. Civ. Code § 2924m(a)(2)(B) — California Legislature“Is occupying the real property under a rental or lease agreement entered into as the result of an arm’s-length transaction with the mortgagor or trustor”
- [62]Cal. Civ. Code § 2924m(c)(3)(A) — California Legislature“a representative of all of the eligible tenant buyers submits to the trustee a bid in an amount equal to the full amount of the last and highest bid at the trustee’s sale”
- [63]Cal. Civ. Code § 2924m(c)(4) — California Legislature“Forty-five days after the trustee’s sale, except that during the 45-day period, an eligible bidder may submit to the trustee a bid in an amount that exceeds the last and highest bid at the trustee’s sale”
- [64]Cal. Civ. Code § 2924m(c)(4)(A)(v) — California Legislature“Be limited to a single bid amount and not contain instructions for successive bid amounts.”
- [65]Cal. Civ. Code § 2924m(c)(4)(B) — California Legislature“the eligible bidder that submitted the highest bid shall be deemed the last and highest bidder pursuant to the power of sale”
- [66]Cal. Civ. Code § 2924m(a)(3)(D)(iv) — California Legislature“One of its primary activities is the development and preservation of affordable rental or home ownership housing in California.”
- [67]Cal. Civ. Code § 2924m(a)(3)(H) — California Legislature“The state, the Regents of the University of California, a county, city, district, public authority, or public agency”
- [68]Cal. Civ. Code § 2924o(a) — California Legislature“for lower income households for 30 years from the date the trustee’s deed is issued”
- [69]Cal. Civ. Code § 2924h(c) — California Legislature“the trustee’s sale shall be deemed final upon the acceptance of the last and highest bid, and shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee’s deed is recorded within 21 calendar days after the sale”
- [70]Cal. Civ. Code § 2924h(c) — California Legislature“the trustee’s sale shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee’s deed is recorded within 60 calendar days after the sale”
- [71]AB 1837 (2022), Legislative Counsel's Digest — California Legislature“Existing law, until January 1, 2026, grants eligible tenant buyers, as defined, and other eligible bidders, as defined, certain rights and priorities to make bids on the property after the initial trustee sale”
- [72]AB 1837 (2022), Legislative Counsel's Digest — California Legislature“This bill would revise the process described above and extend its operation and the operation of the related provisions described above until January 1, 2031”
- [73]Cal. Civ. Code § 2924m(m) — California Legislature“This section shall remain in effect only until January 1, 2031”
- [74]Cal. Civ. Code § 2924(c) — California Legislature“conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value and without notice”
- [75]Cal. Civ. Code § 2924f(b)(8)(A) — California Legislature“You should also be aware that the lien being auctioned off may be a junior lien. If you are the highest bidder at the auction, you are or may be responsible for paying off all liens senior to the lien being auctioned off, before you can receive clear title to the property.”
- [76]Cal. Civ. Code § 2924k(a) — California Legislature“shall distribute the proceeds, or a portion of the proceeds, as the case may be, of the trustee’s sale conducted pursuant to Section 2924h in the following order of priority”
- [77]Cal. Civ. Code § 2924k(a)(3) — California Legislature“To satisfy the outstanding balance of obligations secured by any junior liens or encumbrances in the order of their priority.”
- [78]Cal. Civ. Code § 2924k(a)(4) — California Legislature“To the trustor or the trustor’s successor in interest.”
- [79]Cal. Civ. Code § 2924j(a) — California Legislature“within 30 days of the execution of the trustee’s deed resulting from a sale in which there are proceeds remaining after payment of the amounts required by paragraphs (1) and (2) of subdivision (a) of Section 2924k, the trustee shall send written notice to all persons with recorded interests in the real property”
- [80]Cal. Code Civ. Proc. § 580d(a) — California Legislature“no deficiency shall be owed or collected, and no deficiency judgment shall be rendered”
- [81]Cal. Code Civ. Proc. § 1161a(b) — California Legislature“after a three-day written notice to quit the property has been served upon the person”
- [82]Cal. Code Civ. Proc. § 1161a(b)(3) — California Legislature“Where the property has been sold in accordance with Section 2924 of the Civil Code, under a power of sale contained in a deed of trust executed by such person”
- [83]Cal. Code Civ. Proc. § 1161b(a) — California Legislature“shall be given 90 days’ written notice to quit pursuant to Section 1162 before the tenant or subtenant may be removed from the property”
- [84]Cal. Code Civ. Proc. § 1161b(b) — California Legislature“shall have the right to possession until the end of the lease term”
- [85]Cal. Code Civ. Proc. § 1161b(b)(1) — California Legislature“The purchaser or successor in interest will occupy the housing unit as a primary residence.”
- [86]Cal. Code Civ. Proc. § 1161b(e) — California Legislature“Nothing in this section is intended to affect any local just cause eviction ordinance.”
Questions
How do foreclosure auctions work in California?
Most California foreclosures are trustee's sales under a deed of trust, held without a court. The lender records a notice of default, waits at least three months, then gives at least 20 days' notice of the sale by posting, publication and recording. The trustee auctions the property in the county where it sits, between 9 a.m. and 5 p.m. on a business day, to the highest bidder, who can be required to pay in full in cash or by cashier's check at the sale. For a one-to-four-unit home the sale is not final for 15 days, or 45 if an eligible bidder gives notice of intent.
Is California's 45-day foreclosure rule still in effect in 2026?
Yes. Civil Code section 2924m, which created the post-auction windows for tenants, owner-occupants and nonprofits, remains in effect until January 1, 2031. It was first due to end on January 1, 2026, but AB 1837 extended it in 2022. The sections it works with, 2924f, 2924g and 2924h, carry the same 2031 date.
What is the 15- and 45-day rule after a California foreclosure auction?
After a trustee's sale of a home with one to four units, the sale is final at once only if a prospective owner-occupant wins and files an affidavit by 5 p.m. the next business day. Otherwise it becomes final 15 days after the sale unless an eligible tenant buyer or eligible bidder sends the trustee a bid or a notice of intent to bid. Those who do have until 5 p.m. on the 45th day: the tenants can match the winning bid, and other eligible bidders can beat it.
Do you need cash to buy at a California foreclosure auction?
You need guaranteed funds for the full bid. The trustee can require every bidder to show it can pay in cash, by cashier's check drawn on a state or national bank, by a check drawn by a credit union or savings institution, or by a cash equivalent the notice of sale designates, before recognizing a bid, and can require the winner to deposit the full amount when the hammer falls. Only the lender may bid with the debt instead of money.
Can a California foreclosure auction sell a home for less than 67% of its value?
Not at the first sale. For a home of up to four units sold under a first deed of trust, the lender must give the trustee a fair market value at least 10 days before the first sale date, and the trustee may not sell at that first sale for less than 67% of it. If the property does not sell, the trustee postpones the sale at least seven days, and at the next sale it can go to the highest bidder at any price.
Where are foreclosure auctions held in California?
In the county where the property is, at the place the notice of sale states, between 9 a.m. and 5 p.m. on a business day. Notices commonly name a spot outside a courthouse or civic center, such as a particular entrance or the steps of a county building, and a trustee that sets several sales for the same time and place holds them one after another.
Can a tenant buy the house after a California foreclosure auction?
Yes, if they qualify as an eligible tenant buyer: a natural person living in the home under an arm's-length lease made before the notice of default, who is not the borrower or the borrower's child, spouse or parent. The tenants, acting together through one representative, can buy by matching the auction's last and highest bid, sent so the trustee receives it by 5 p.m. on day 15, or by day 45 if they first sent a notice of intent.
How to cite this article
Quote freely with a link. Where a claim rests on a statute, the source above is the authority; cite it alongside this page.
TrusteeSaleData. "The California trustee sale, and the 45 days after it." Published October 5, 2026. https://www.trusteesaledata.com/blog/california-foreclosure-auction-rules
Related
- How a Virginia foreclosure works, from the 60-day notice to the deedHow the Virginia foreclosure process works: the 60-day notice, the newspaper ads and their 8-to-30-day window, the 10% deposit, and the 90-day senior-loan payoff.
- Arizona's trustee sale, from recorded notice to deedHow an Arizona trustee sale works: the 91 days after the recorded notice, the lender's bid released the day before, the $10,000 deposit and next-day payment.
- The Colorado public trustee sale, from notice to deedHow a Colorado public trustee sells a foreclosed home: the court order, the lender's bid posted two business days ahead, the weekly auction and the days after it.