In short: most California foreclosures are nonjudicial trustee sales. After the owner defaults, the trustee records a Notice of Default, waits at least three months before issuing a Notice of Trustee's Sale, and holds a public auction at least 20 days after that notice. Bidders pay with cashier's checks, the home is sold as-is, and you usually cannot go inside first.
Timeline
| Stage | What happens | What the buyer does |
|---|---|---|
| Notice of Default | The trustee records it with the county; the owner can still cure the default | Put the property on a watch list |
| Notice of Trustee's Sale | Allowed three months after the Notice of Default; posted and published at least 20 days before the sale | Order a title report, drive the property, estimate value |
| Auction day | Public bidding; the lender sets the opening bid, and postponements are common | Bring cashier's checks and stick to a preset maximum |
| 15 days after sale (1–4 units) | If an investor wins, eligible bidders such as the tenant, prospective owner-occupants and some nonprofits can bid or file a notice of intent within 15 days | Wait; do not start work or resell yet |
| Up to day 45 | If a notice of intent was filed, the window runs to day 45 and the highest eligible bid wins | If an eligible bidder outbids you, your funds are returned |
| Trustee's deed recorded | The Trustee's Deed Upon Sale transfers title to you | Insure the property and deal with any occupants |
Three things to check before you bid
- Debts the sale does not wipe out. Loans recorded ahead of the one being foreclosed (senior liens) and unpaid property taxes stay with the property. If a second mortgage is being foreclosed, the first mortgage remains.
- IRS liens. If a federal tax lien is recorded and the IRS received proper notice, the IRS can redeem the property for your purchase price within 120 days of the sale.
- Lis pendens and HOA dues. A recorded lis pendens can mean a title dispute. Whether unpaid HOA assessments survive depends on recording priority.
All of this shows up in the title report. We review it line by line before every bid, and if something is unclear we would rather not bid.
Funding the purchase
Trustees accept only cash equivalents: California law allows cash, cashier's checks, and checks drawn by a bank or credit union doing business in California. The full amount is due on the trustee's schedule, with no time for loan approval. Most buyers pay with their own funds and refinance after closing, often with a DSCR loan.
If someone still lives there
A former owner gets a three-day notice to quit, followed by an unlawful detainer case if they stay. A tenant with a bona fide lease is generally entitled to at least 90 days' notice in California. Many buyers negotiate cash for keys, which is usually faster than going to court.
Who it suits
Buyers with cash who can accept not seeing the interior and an uncertain move-out date. First-time buyers who need a loan to buy a home to live in are usually better off with bank-owned (REO) listings.
How Aspire LaShine can help
Elena Jiang's foreclosure team handles property selection, title review, valuation, auction bidding, and move-out and renovation after the sale. See past results and FAQs on California Foreclosure Investment, call 714-470-0170, or contact us.
Sources
- California Civil Code §2924 (notice timing), §2924f (notice of sale), §2924h (payment at auction)
- California Civil Code §2924m (15- and 45-day eligible bidder rules for 1–4 unit residential sales; current text in effect until January 1, 2031)
- 26 U.S.C. §7425(d) (IRS 120-day right of redemption)
- California Code of Civil Procedure §1161a, §1161b (notice to former owners and tenants after sale)
General information only, not legal advice. Title and occupancy differ by property; talk to an attorney and a title company before bidding. Information as of October 2026.
