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California

California Civil Code § 2924. Both foreclosure state.

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Judicial Type

Both

Redemption

No statutory right of redemption after non-judicial trustee

Deficiency

California has a strong anti-deficiency regime: (1) no defic

Mediation

California Homeowner Bill of Rights (HBOR) requires lenders

Statute Citation

Cal. Civ. Code §§ 2920-2944.10

Redemption Period

No statutory right of redemption after non-judicial trustee sale. For judicial foreclosure: 3 months if property sold for less than the debt; 1 year if proceeds exceed the debt (Cal. Code Civ. Proc. § 729.030).

Deficiency Judgment Rule

California has a strong anti-deficiency regime: (1) no deficiency on purchase-money loans for owner-occupied 1-4 unit residential property (Cal. Code Civ. Proc. § 580b), (2) no deficiency after non-judicial trustee sale on ANY residential 1-4 unit property regardless of loan purpose (Cal. Code Civ. Proc. § 580d), (3) deficiency ONLY available after judicial foreclosure on non-purchase-money loans not covered by § 580b.

Notice Requirements

Notice of default recorded and mailed to borrower. 3-month reinstatement period after NOD recording. Notice of sale recorded, posted, and mailed at least 20 days before sale. California's notice requirements are detailed and strict — violations support a wrongful foreclosure claim.

Mediation Program

California Homeowner Bill of Rights (HBOR) requires lenders to provide a single point of contact and prohibits dual tracking. Some counties have mediation programs.

Key Provisions

  • Non-judicial and judicial foreclosure both available — non-judicial is the norm (over 99% of foreclosures)
  • California Homeowner Bill of Rights (HBOR): single point of contact, dual tracking prohibition, requirement to provide written denial reasons
  • Borrower has 3 months after notice of default to cure (longer than most states)
  • Trustee sale cannot be set aside except for grossly inadequate price or procedural irregularity
  • Trustee must be a title company, attorney, or other qualified entity

Homeowner Protections

  • Anti-deficiency protection for purchase-money loans on owner-occupied property (one of the strongest in the US)
  • No deficiency after non-judicial trustee sale of any residential 1-4 unit property (regardless of loan type)
  • 3-month reinstatement period is among the longest in the nation
  • HBOR provides single point of contact and dual tracking prohibition
  • Lender must provide a written denial with specific reasons for loan modification denial
  • Homeowner may sue for wrongful foreclosure for procedural irregularities (£2924 violations are common)

Frequently Asked Questions

When is a lender prohibited from getting a deficiency judgment in California?+
Almost always in residential foreclosures. Three layers: (1) Purchase-money loans on owner-occupied 1-4 unit property: no deficiency EVER (§ 580b) — even after judicial foreclosure. (2) Non-judicial trustee sale: no deficiency on ANY residential 1-4 unit property (§ 580d) — regardless of loan purpose. (3) Deficiency is ONLY available after JUDICIAL foreclosure AND on NON-purchase-money loans NOT covered by § 580b — a narrow category (typically refinances of investment properties). For most California homeowners, deficiency judgments are legally barred.
What is the California Homeowner Bill of Rights (HBOR)?+
The HBOR (effective 2013, made permanent 2018) provides: (1) Single point of contact — the servicer must assign a dedicated representative to your file, (2) Dual tracking prohibition — if you submit a complete loan modification application at least 37 days before the sale, the servicer CANNOT proceed with foreclosure while evaluating it, (3) Written denial — if your modification is denied, the servicer must provide specific reasons in writing and allow an appeal, (4) Verification of authority — the foreclosing entity must document its authority to foreclose (particularly important for securitized loans with MERS assignments). HBOR violations support a private right of action for injunctive relief and damages.
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