Understanding California AB2424

Third-Party Notification – You can designate a family member, attorney, or housing counselor to receive foreclosure notices on your behalf. Foreclosure Sale Postponement – If you provide a valid listing agreement at least 5 business days before the foreclosure sale, the sale must be postponed for 45 days. If you submit a purchase agreement, the sale is delayed further to allow the transaction to close. Fair Market Value Protection – Lenders must provide a property assessment at least 10 days before the trustee's sale, and the property cannot be sold for less than 67% of this value at the initial foreclosure auction. Stronger Homeowner Protections – Lenders must communicate loss mitigation options early, ensuring you have every opportunity to avoid foreclosure. Step 1: Missed Mortgage Payments (Days 1–90) • Day 1: First missed payment. • Day 36: Lender must reach out to discuss repayment or modification options. • Day 45: Lender must send a written Notice of Foreclosure Alternatives. Step 2: Notice of Default (After 90 Days of Nonpayment) • The lender records a Notice of Default (NOD) with the county. • Homeowner has at least 90 days to bring the loan current. Step 3: Notice of Trustee Sale (At Least 90 Days After NOD) • If the loan isn't reinstated, the lender issues a Notice of Trustee Sale (NOTS). • The sale must be scheduled at least 21 days later. • AB 2424 Protection: If you submit a valid listing agreement at least 5   business  days before the sale, the sale must be postponed for 45 days. Step 4: Foreclosure Sale (At Least 111 Days After NOD) • The property is auctioned to the highest bidder. • AB 2424 Protection: The sale cannot occur for less than 67% of fair market   value at the first auction. • If the homeowner provides a purchase agreement during the 45-day   postponement, the sale must be delayed further to allow closing. Step 5: Post-Foreclosure Eviction (If Necessary) • If the homeowner does not vacate, the new owner must follow legal eviction   procedures. Information deemed reliable but not guaranteed. Please visit the bill in it's entirety at https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2424 Download a copy of this article

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