So what do Notices of Default & Notices of Trustee Sale (Foreclosure) mean?
The Stages of Foreclosure
1. Payment Default (Missed Payments):
Occurs when a borrower misses a monthly mortgage payment.
After a 15-day grace period, a late fee is usually applied.
Federal rules typically prevent lenders from officially launching a foreclosure until the borrower is 120 days delinquent (about four missed payments). During this time, the lender will send reminder letters and attempt live contact
2. Pre-Foreclosure (Notice of Default):
Once the loan hits official default, the lender files a public Notice of Default (NOD) or a lis pendens in court.
This phase gives the homeowner a "cure period" 90 days, depending on to pay the back-due amount, reinstate the loan, or apply for loss mitigation options like a loan modification, forbearance, or short sale.
Then the lender has 21 days to PUBLISH - at County Recorder Assesors Office, POST - directly on the doors of the tenants, MAIL - to tenants and borrower of the Foreclosure or Notice of Trustee Sale.
3. Foreclosure Process (Judicial vs. Non-Judicial):
Judicial Foreclosure: The lender files a lawsuit in state court. The homeowner receives a summons and complaint and can file an answer or fight the case before a judge issues a judgment of sale. (Mr. Spicer & Mr. Hinson have many lawsuits filed against them that could trigger the Judicial Foreclosure. Go back to HOME page and scroll down to Lawsuits )
Non-Judicial Foreclosure (Power of Sale): Allowed in many states. The lender follows a state-mandated process without court supervision, recording a Notice of Trustee's Sale and publishing the auction date.
4. The Foreclosure Auction (Sheriff's or Trustee's Sale):
The home is sold at a public auction (often held at the county courthouse or online) to the highest bidder or reverts back to the mortgage lender as a Real Estate Owned (REO) property if it doesn't sell.
The homeowner retains a brief "right of redemption" to buy back the property before or shortly after the sale is confirmed under certain circumstances.
5. Post-Foreclosure (Eviction):
If the former owner or tenants do not vacate voluntarily after the sale, the new owner or lender files an eviction lawsuit or a writ of possession to remove them.
Scroll down for more informtion on "STEPS TO TAKE IF YOUR RENTAL IS FORECLOSED ON"
Depending on state law, the lender may also pursue a deficiency judgment if the auction price was lower than the total amount owed on the mortgage.
Nonjudicial foreclosures:
Take less time (usually about 4-6 months)
Cost less money, because there’s no court case
In most cases, if the money from the sale of your home doesn’t cover all you owe, the lender can’t go to court to get an order for the rest.
There are a few exceptions related to fraud (like if you lied when you got the loan), or cash-out refinance loans or second liens. Talk to a lawyer if you think one of these might apply to you.
You do not have the right to buy your home back after it’s sold.
Judicial foreclosures: (Mr. Spicer & Mr. Hinson have many lawsuits filed against them that could trigger the Judicial Foreclosure. Go back to HOME page and scroll down to Lawsuits )
Usually take longer (can take many months, even years)
Cost more because of court costs and legal fees
If you still owe money after the sale of your home, the lender can ask the court to order you to pay the debt you still owe (called a deficiency judgment)
You have time to buy back your home after it’s sold. This is called the right of redemption.
If the sale of your home paid off all you owed, you have 3 months to try to buy back your home.
If the sale of your home did not pay off all your debt, you have 1 year to try to buy back your home.
To find out if your home is in foreclosure:
Record a Request for Notice form in your county recorder’s office.
This form asks that you be notified of any foreclosure proceedings. You will then receive a copy of the Notice of Default and Notice of Sale and know the status of the foreclosure.
You can buy a Request for Notice at stores that sell legal forms or get 1 from the customer service department of a title company.
If you know your home/rental has been foreclosed:
Read the notices carefully.
Foreclosure and eviction notices will have deadlines. Note them right away.
Know who to pay rent to.
Usually, the new owner will take over rent collection. Ask in writing if unsure.
Ask about your lease.
If you have a fixed-term lease, show it to the new owner — they may have to honor it.
Start looking for a new place early.
Even with 90 days’ notice, finding a new home can take time.
Get help if needed.
Call your local legal aid office or tenants’ rights agency. They can explain your rights and help with eviction notices.
📌 Important Tips
Don’t ignore notices. Respond or get help immediately.
Document everything. Keep copies of notices, payments, and communications.
Know your local resources. Some cities in California have extra protections for tenants in foreclosure.
There are resources for tenants to get more information about their rights.
Read Action Guide for California Tenants in Foreclosure Situations
Call the Tenant Foreclosure Hotline at 1-888-495-8020.
If you need additional information, talk to a lawyer ↗️ (opens in a new tab).