Can You Sell a House After a Notice of Default in Southern California?

By Damian Gerry · September 13, 2026 · 4 views

Yes. A recorded Notice of Default changes who is watching the calendar, not who owns the house. Here is what selling looks like inside each window the NOD opens in Riverside, Orange, and San Diego County, and how putting the house on the market now earns extra time under a law that took effect in 2025.

In this article

Yes. A recorded Notice of Default, the NOD, does not take the house from you or freeze your right to sell it. Under California Civil Code section 2924 it is the document a lender records with the county recorder to start the foreclosure clock, and nothing in it transfers title or requires the lender's consent to a sale. What changes is the calendar, and the table is the guide in one place.

Where you areWhat the statute saysWhat a sale needs to do
Day 0 to 90 after the NOD recordsNo notice of sale for three months (Civil Code 2924)Nothing is scheduled. List, or get a cash offer
Notice of Trustee's Sale recordedAt least 20 days out (Civil Code 2924f), never sooner than three months and 20 days after the NODEscrow closes before the sale date, or the date moves
Five business days before the saleThe right to reinstate ends (Civil Code 2924c). Selling does notA full payoff through escrow is allowed until the sale is complete
Any time before the sale is completeA listing agreement bars the sale 45 more days; a purchase agreement postpones it 45 again (Civil Code 2924f, per AB 2424)The right paper, delivered in time, buys the escrow time

What the Notice of Default changes, and what it leaves alone

A modest stucco home with a Spanish tile roof seen from across a quiet street at twilight, one window lit and the porch light on, Murrieta CA
The notice changed the calendar, not whose house this is.

Three things stay as they were. You still own the house. You can list it, sign a purchase agreement, and open escrow without asking the lender. And escrow can pay the loan off in full through a payoff demand at closing, which is how a sale in default ordinarily closes.

Two things are different. The NOD is a public record at the recorder's office of the county the property sits in, which is why investor letters start within days. And every deadline counts from the recording date, not the day the envelope reached you. Each recorder in Riverside, Orange, and San Diego County shows that date online, and the FAQ says where.

The three windows after the NOD is recorded

The first 90 days. Section 2924 requires not less than three months after the NOD before a notice of sale can be given. Nothing is scheduled. A listed house in Temecula or Escondido can run a normal marketing period, and a cash sale closes well inside it.

After the Notice of Trustee's Sale. Once three months pass, the trustee can record the notice of sale, with the sale at least 20 days out under section 2924f. Escrow closes before that date, or the date moves.

The last five business days. Section 2924c lets you reinstate, meaning pay the arrears plus the lender's costs and fees, until five business days before the sale. That cutoff applies to reinstating, not selling: a sale is final only when the last bid is accepted, as our guide to selling a house in foreclosure explains.

The statutory deadlines, and the section that sets each one
DeadlineCounted fromSectionWhat it governs
Three months before any notice of saleNOD recording dateCivil Code 2924The earliest the trustee may give notice of sale
Notice of sale may record up to five days earlyEnd of the three monthsCivil Code 2924Allowed only if the sale date is at least three months and 20 days after the NOD
At least 20 days of notice before the saleNotice of saleCivil Code 2924fThe minimum gap between the notice and the auction
Reinstatement ends five business days before the saleSale date in the noticeCivil Code 2924c(e)Paying the arrears, costs, and fees to stop the sale
Reinstatement revivesA subsequent notice of sale, or a postponement of more than five business daysCivil Code 2924c(e)The right returns until five business days before the new date
Postponements total up to 365 daysSale date in the noticeCivil Code 2924g(c)(1)Beyond that, a new notice of sale is required
The sale is finalAcceptance of the last and highest bidCivil Code 2924hThe end of your ability to sell

The 2025 law that rewards putting the house on the market

Assembly Bill 2424 took effect on January 1, 2025 and rewrote part of section 2924f for homes of one to four units. Two provisions exist for exactly this seller.

A clipboard of blank pages, a pen, and a house key on a plain wooden desk under lamplight, Southern California
Since 2025, the listing agreement is a document the trustee has to count.

"The law also prohibits a foreclosure sale from being conducted for 45 days if the trustee receives, at least 5 business days before the scheduled date of sale, a listing agreement for the sale of the property."

Amy Loftsgordon, Attorney, in California Foreclosure Laws 2025, AllLaw

Section 2924f(e)(1) requires that listing agreement to be with a California licensed real estate broker. Subdivision (e)(3) then makes the trustee postpone the sale to at least 45 days after receiving a purchase agreement, delivered the same way. A listing and then a signed contract can move the auction by roughly three months. Subdivision (f)(1) adds a floor: at the first scheduled sale the trustee may not sell below 67 percent of fair market value. None of this cancels the foreclosure. It gives a sale already under way the time to close, which is the difference between keeping your equity and losing it through the trustee.

What to hand the trustee, and when
DocumentDeadline to deliverWhat it doesWhere it is written
Listing agreement with a California licensed real estate brokerAt least five business days before the scheduled saleBars the sale for an additional 45 days after the scheduled dateCivil Code 2924f(e)(1)
Purchase agreement for the propertyAt least five business days before the scheduled saleTrustee postpones to a date at least 45 days after receiving itCivil Code 2924f(e)(3)
Fair market valuationThe lender provides it at least ten days before the initial saleThe trustee may not sell at that first sale below 67 percent of itCivil Code 2924f(f)(1)
Mutual agreement to postponeAny time before the sale is completeAny length, inside the 365 day totalCivil Code 2924g(c)(1)

Deliver each document in writing to the trustee named on the Notice of Trustee's Sale, and keep proof of the date it was received. The statute counts from receipt, not from the day you sent it.

Reinstating, paying off, or selling: three different questions

RouteWhat it takesWhen it stops being availableApproval
ReinstateThe arrears plus the lender's costs and fees, in one paymentFive business days before the sale; revives if the sale is postponed or re-noticedNo one. It is a right under 2924c
Sell and pay off in fullAn escrow that closes before the sale at a price covering the payoff demandWhen the last and highest bid is acceptedNo one. The lender is paid through escrow
Short saleA buyer, plus the lender's written agreement to take less than it is owedThe same moment, but approval takes weeksThe lender, because it takes a loss

Listing or a cash sale inside the window

With 90 days and no sale date, a listing is a real option and often nets more. A correctly priced house in Huntington Beach or Irvine can find a buyer in a normal marketing period, and the listing agreement itself now buys 45 days.

With a sale date on record, the comparison changes from price to certainty. A cash sale has no financing contingency and no appraisal, so its closing date is one a trustee can be asked to postpone against. 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 after the NOD and up to the sale itself. Get a no-obligation cash offer and use it as the number the calendar has to beat.

A weathered wooden side gate standing open in a stucco garden wall with evening light on the stone path, Temecula CA
The way out was always there. The window decides how wide it opens.

Frequently Asked Questions

How do I confirm the date my Notice of Default was recorded in Riverside, San Diego, or Orange County?

Search the official records of the county the property is in, using your name as the trustor and the document type Notice of Default. Riverside County's Assessor-County Clerk-Recorder offers an online official records search with paid copies. San Diego County's Assessor/Recorder/County Clerk keeps an indexed online search of real estate records from 1970 forward. Orange County's Clerk-Recorder online search returns the index only, with copies requested by mail or in person. The recording date on that index entry is the day the three month clock in Civil Code 2924 started, and it is the date to plan an escrow against.

Do I need the lender's permission to sell after a Notice of Default?

Not when the sale pays the loan off in full. Escrow requests a payoff demand, the lender is paid at closing, and its lien is released. You only need the lender's agreement when the price will not cover what is owed, which is a short sale, and that approval takes time the calendar may not give you.

Does listing the house stop the foreclosure?

It postpones it rather than stopping it. Under Civil Code 2924f(e)(1), a listing agreement with a California licensed real estate broker, received by the trustee at least five business days before the scheduled sale, bars the sale for an additional 45 days. A purchase agreement delivered the same way moves the sale to at least 45 days after the trustee receives it under 2924f(e)(3). The foreclosure resumes if the sale has not closed by then.

If the sale is postponed, does my right to reinstate come back?

Yes. Civil Code 2924c(e) revives the right to reinstate when a subsequent notice of sale is recorded, and when a sale is postponed by more than five business days. In either case it runs until five business days before the new sale date. Reinstating still means paying the entire amount due plus the lender's costs and fees, so it helps most when the money that was missing has since arrived.

About Selling After a Notice of Default in California

Sources: Civil Code 2924, 2924c, 2924f, 2924g, 2924h, AB 2424, California Courts, Amy Loftsgordon, AllLaw, Riverside County ACR, San Diego County ARCC, Orange County Clerk-Recorder

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