Every dollar a servicer adds after you fall behind is paid from the same place: the equity in the house. California caps most of those charges by statute, and the caps are worth knowing, because a reinstatement quote or a payoff demand is only as honest as the person checking it. The table lists each charge a Riverside, Orange, or San Diego County homeowner meets between the first missed payment and the trustee's sale, and the law that limits it.
| Charge | The legal cap | When it starts |
|---|---|---|
| Late charge | 6 percent of the principal and interest installment, or $5, whichever is greater, once per installment (Civil Code 2954.4) | Not until the payment is at least 10 days late |
| Interest and advances | Whatever the note sets, plus taxes, insurance, and other sums the lender advances (Civil Code 2924c) | Every day the balance stays unpaid |
| Trustee's or attorney's fee, notice of default stage | A base of $300 or $350 plus a sliding percentage of unpaid principal (Civil Code 2924c(d)) | When the NOD is recorded |
| Trustee's or attorney's fee, notice of sale stage | A base of $410 or $475 plus a higher sliding percentage, replacing the NOD fee (Civil Code 2924d) | When the notice of sale is mailed |
| Costs | Recording, mailing, publishing, and posting the notices, a trustee's sale guarantee, and up to $100 per postponement (Civil Code 2924c(c)) | As each notice is issued |
| Force-placed insurance | Only after two written notices, 45 days ahead, and only at a bona fide and reasonable charge (12 CFR 1024.37) | When your own policy lapses |
The order matters as much as the amounts. Under Civil Code 2924k the trustee pays the costs of the sale first, then the loan, then junior liens, and only then the owner. Every fee above sits in that first line, ahead of you.
The Consumer Financial Protection Bureau put the whole pile at roughly $12,500 for the average completed foreclosure, in 2021 dollars. On a Temecula or Oceanside house with real equity, that is money that would have been yours at a closing table.
The two fee schedules, worked for Southern California balances
The trustee's fee is the one people underestimate, because it is a percentage of the whole unpaid principal, not of the arrears. Section 2924c(d) sets the schedule at the notice of default stage. Section 2924d replaces it with a steeper one once the notice of sale is mailed. The statute calls a fee inside these limits "conclusively presumed to be lawful," so these are the ceilings, not estimates.
| Unpaid principal | Maximum fee after the NOD | Maximum fee after the notice of sale |
|---|---|---|
| $400,000 | $1,425 | $2,660 |
| $700,000 | $1,925 | $3,660 |
Those are the statutory maximums applied to two balances common from Murrieta to Irvine, before a single cost item. Reinstating at the later stage means paying the larger figure.
The full statutory schedule, tier by tier
| Unpaid principal secured | Notice of default stage, Civil Code 2924c(d) | Notice of sale stage, Civil Code 2924d(a) |
|---|---|---|
| $50,000 or less | Up to $350 | Up to $475 |
| $50,001 to $150,000 | $350 plus one-half of 1 percent of the amount over $50,000 | $475 plus 1 percent of the amount over $50,000 |
| $150,001 to $500,000 | $300 plus one-half of 1 percent of the amount from $50,000 to $150,000, plus one-quarter of 1 percent of the amount over $150,000 | $410 plus 1 percent of the amount from $50,000 to $150,000, plus one-half of 1 percent of the amount over $150,000 |
| Over $500,000 | The $500,000 figure plus one-eighth of 1 percent of the amount over $500,000 | The $500,000 figure plus one-quarter of 1 percent of the amount over $500,000 |
The notice of sale fee is charged in lieu of the notice of default fee, not on top of it. A charge above either schedule is not presumed lawful and is worth questioning in writing.
Late charges: the cap, the grace period, and the once rule
For a loan on an owner-occupied single-family home, Civil Code 2954.4 allows a late charge of 6 percent of the principal and interest installment, or $5, whichever is greater. A payment is not late for that purpose until 10 days after its due date, and a charge may not be imposed more than once for the same installment. So a $3,000 installment carries at most $180 per missed month, and a servicer that bills a second late charge on the same month is outside the statute.
"A homeowner's average cost from a completed foreclosure was approximately $12,500 (in 2021 dollars, after adjusting for inflation)."
Sara Fuchs and Beth Spring, Consumer Financial Protection Bureau, in For many struggling mortgage borrowers with home equity, selling their home could be an alternative to foreclosure, January 2023
The CFPB reported in April 2024 that servicers had charged "prohibited fees for property inspections and late fees that exceeded amounts allowed by their mortgage loan agreements," and ordered refunds. Your note can set a lower late charge than the state cap. If it does, the note controls.
What a legitimate reinstatement quote contains
Civil Code 2924c(a)(1) defines the reinstatement amount as the entire amount due at the time of tender: the principal, interest, taxes, assessments, and insurance premiums shown in the default, any advances the lender made, plus reasonable costs and expenses and the trustee's or attorney's fee under the schedules above. Anything else on the quote has to be justified by the loan documents.
Line by line: what belongs on the quote, and what to challenge
| Line item | Allowed? | Check it against |
|---|---|---|
| Missed principal and interest installments | Yes | Your note and the last statement before default |
| Late charges | Yes, capped | 6 percent of principal and interest, or $5, once per installment, none in the first 10 days |
| Taxes, insurance, and other advances | Yes, if actually paid by the lender | The county tax bill and your insurer's records |
| Trustee's or attorney's fee | Yes, capped | Civil Code 2924c(d) before the notice of sale, 2924d after it |
| Recording, mailing, publishing, posting, sale guarantee | Yes, at cost | Civil Code 2924c(c); receipts on request |
| Postponement fees | Yes, up to $100 each | Civil Code 2924c(c) |
| Force-placed insurance | Only with notice | Two written notices, the first at least 45 days before any charge; refund within 15 days if you had coverage (12 CFR 1024.37) |
| Property inspection fees | Only if the loan documents allow them | The CFPB treats inspection fees outside the loan terms as prohibited |
| Fees above either statutory schedule | No | Ask for the itemization in writing and raise it with a HUD-approved housing counselor |
Where it all comes out: the order of payment at the sale
If the house goes to auction, Civil Code 2924k pays the costs and fees first, the loan second, junior liens third, and you last. Whatever is left is yours, but only through the trustee's surplus process under 2924j, on a 30 day claim window, and in Riverside, Orange, and San Diego County any dispute over it is deposited with the superior court of the county where the sale took place.
A sale before the auction reverses the order in one respect: the fees stop accruing the day escrow pays the demand. We buy houses as-is for cash across Southern California, from the Temecula Valley and Riverside County to Orange County and North County San Diego, at any point before the sale, and the payoff demand escrow orders is the same itemized document you can check against the table above. Our guides on selling after a Notice of Default and what waiting costs in equity cover the calendar. Get a no-obligation cash offer and see what stops the meter.
Frequently Asked Questions
If there is money left after a trustee's sale in Riverside, Orange, or San Diego County, where does it go?
To you, after the costs, the loan, and any junior liens are paid in the order Civil Code 2924k sets. Under Civil Code 2924j the trustee has 30 days from executing the trustee's deed to send written notice to everyone with a recorded interest, and claims are due 30 days after that notice. If the trustee cannot settle who gets what within 90 days, it deposits the funds with the clerk of the superior court of the county where the sale occurred, so a Temecula sale goes to the Riverside County Superior Court, an Oceanside sale to San Diego County, and a Huntington Beach sale to Orange County. The clerk deducts a filing fee equal to an interpleader action before the court distributes the rest.
Can the servicer charge a late fee on the same missed payment every month?
No. Civil Code 2954.4 allows one late charge per late installment on an owner-occupied single-family home, capped at 6 percent of the principal and interest portion or $5, whichever is greater, and not before the payment is 10 days late. A quote that shows more late charges than missed months is worth an itemization request.
What is the maximum trustee's fee in a California foreclosure?
It depends on the unpaid principal and the stage. Before the notice of sale, Civil Code 2924c(d) allows a base of $300 or $350 plus a sliding percentage that works out to $1,425 on a $400,000 balance. After the notice of sale, Civil Code 2924d allows a base of $410 or $475 plus a steeper percentage, $2,660 on the same balance, charged instead of the earlier fee rather than added to it. The statute presumes a fee inside those limits lawful and says nothing of the kind about one above them.
Does selling the house stop the fees?
Yes, as of the day escrow pays the lender's demand. Until then interest keeps accruing, each missed installment can carry its late charge, and the trustee's fee steps up when the notice of sale is mailed. The demand escrow orders itemizes every one of those lines, which is why the tables above are worth keeping beside it.
About Foreclosure Fees and Costs in California
- Civil Code 2924c, reinstatement, costs, and the notice of default fee schedule
- Civil Code 2924d, the notice of sale fee schedule
- Civil Code 2954.4, late charge limits
- CFPB Regulation X, force-placed insurance, 12 CFR 1024.37
- HUD, free housing counseling
Sources: Civil Code 2924c, 2924d, 2924j, 2924k, 2954.4, 12 CFR 1024.37, CFPB, Fuchs and Spring, 2023, CFPB, April 2024, HUD