If you are a homeowner in California facing foreclosure, the new foreclosure law in California, California Assembly Bill 2424, could give you a second chance to stop the sale of your property. This important state law gives non judicial foreclosure California borrowers more time to avoid losing their home. It changes how lenders, trustees, and the foreclosure process must be handled starting in 2025.
Let us walk you through what CA AB2424 means, how it works, and how it could help you regain control of your situation.
New Foreclosure Law in California – What Is California AB 2424
Assembly Bill 2424 was introduced by Assembly member Schiavo and signed into law in 2024. It took effect on January 1 of 2025. The bill adds new consumer protection provisions to California’s existing foreclosure laws. It applies to residential properties with one to four units, including single family homes, townhomes, and condominiums.
The main purpose of California AB2424 is to give homeowners facing foreclosure sale an opportunity to postpone that sale for up to ninety additional days, under specific conditions. This postponement window is designed to help families sell their property or avoid foreclosure altogether.
Notice of Intent to Foreclose California – Two Ways to Postpone Foreclosure
Thanks to California Assembly Bill 2424, borrowers can now request a 45 day delay in the foreclosure process in two specific ways.
1. Postponement With a Listing Agreement
If the borrower gives the trustee a valid listing agreement with a licensed real estate agent and proof that the property is listed on the Multiple Listing Service, the trustee must delay the foreclosure sale date by at least 45 days.
To qualify, the request must be submitted no later than five business days before the scheduled sale date.
This new rule gives homeowners more time to market the home, attract buyers, and potentially sell before the foreclosure becomes final.
2. Postponement With a Purchase Agreement
If the borrower submits a signed purchase agreement from a third party buyer showing they are offering at least the amount owed on the mortgage loan, the trustee must again delay the foreclosure sale for 45 days.
This purchase offer must also be submitted no later than five business days before the scheduled sale date.
Each of these options can only be used one time, and both must meet the law’s fair market value and documentation requirements.
Other Requirements Under Assembly Bill 2424
The new bill also introduces additional steps lenders and trustees must follow:
- Lenders must notify the borrower of the property’s fair market value at least 10 days before the scheduled sale.
- Trustees are not allowed to sell the property for less than 67 percent of that fair market value unless no bids are received. In that case, the sale is postponed for at least 7 days.
- Borrowers still have the legal right to reinstate their loan up to 5 business days before the sale date by paying off the amount owed.
These consumer protections are designed to make foreclosure more fair and transparent, and to give borrowers a final opportunity to resolve the default before their home is lost.
Why California AB 2424 Matters for Homeowners
Receiving a notice of default or sale is one of the most stressful experiences for any homeowner. California AB 2424 offers a real opportunity to protect your property and avoid foreclosure. It creates a legal option to buy time and explore a better path, such as selling your home or working with a cash buyer who can close quickly.
The law encourages fair market outcomes by making sure homes are not sold off too cheaply at auction. It also ensures lenders and trustees are held accountable to the borrower.
How We Help Homeowners Take Advantage of AB 2424
At R&H Distressed Properties, we help California homeowners just like you navigate urgent foreclosure situations. Whether you want to sell your property during a postponement window or need help submitting the right paperwork, we are here for you.
- We are local buyers who can make a fair cash offer within hours
- You do not need to make repairs or clean out the property
- We can close in as little as 7 to 14 days
- We will guide you through the requirements of Assembly Bill 2424
If you already have a listing or a signed purchase agreement in place, we can help you qualify for the 45 day delay. If you do not have one yet, we can buy your house with an offer that meets the law’s standards so you can postpone the foreclosure and protect your equity.
Call Today Before the Sale Date Approaches
Time is critical when foreclosure notices have been issued. With the protections of California AB2424 now in effect, you have a powerful new tool to delay the process and sell on your terms.
Call us today at (925) 302-2905 to learn your options under the new law. We offer free guidance and a no obligation offer on your home. Let us help you take advantage of Assembly Bill 2424 before the foreclosure moves forward.