Facing Foreclosure in California? AB 2424 Gives You 60 Days to Sell Your Home First

What does California's AB 2424 foreclosure postponement law mean for homeowners?

California's AB 2424, effective January 1, 2025, gives homeowners facing a nonjudicial trustee's sale the right to postpone the auction for 60 days to sell their home on the open market. To qualify, you must list the property on the MLS through a licensed real estate agent at a price at or above 67% of its fair market value, and submit your request at least 5 business days before the scheduled sale date. If a buyer opens escrow during the 60-day window, the trustee must grant up to 45 additional days to allow the transaction to close — giving you a realistic path to sell at market value and preserve whatever equity remains.

By Jason Franklin | November 10, 2026

If your home is headed toward a trustee's sale and you don't know about AB 2424, you may be forfeiting equity — or losing everything — when you didn't have to.

This is one of the most underutilized protections in California real estate. Most homeowners in pre-foreclosure have no idea it exists. The mortgage servicer isn't going to tell you about it. The notice of trustee's sale paperwork doesn't mention it. And once that auction date passes, the window closes.

Here's exactly how it works, who qualifies, and what to do if you're running out of time.

What AB 2424 Actually Does

California's foreclosure process is primarily nonjudicial, meaning the lender doesn't have to go through the courts to sell your home at auction. Once you've received a Notice of Default and the 90-day reinstatement period has passed, the trustee's sale can be scheduled — and that date, in most cases, is final unless you do something about it.

AB 2424 creates a legal right to do something about it.

If you meet the requirements, the trustee must postpone the sale for 60 days. This isn't a request the servicer can decline if you've checked the boxes. It's a statutory right.

The core requirements:

• Your property is a 1–4 unit residential home in California
• You list the home on the MLS with a licensed real estate agent
• The listing price is at or above 67% of the property's fair market value (as established by your listing agent's CMA)
• You submit the postponement request at least 5 business days before the scheduled trustee's sale date

If a buyer opens escrow during the 60 days, the trustee must grant up to 45 more days to allow the transaction to close. That means your effective window to get a deal across the finish line can be over three months from the original auction date.

The 5-Business-Day Deadline Is Everything

This is where most people run into trouble. By the time many homeowners understand what AB 2424 offers, they've already missed the window.

Five business days before a trustee's sale isn't much time. If your sale is scheduled for a Monday, your deadline may land the previous Monday or Tuesday depending on how holidays fall. If you call an agent on Wednesday of the week before — it may already be too late.

The moment you receive a Notice of Trustee's Sale, that document triggers your countdown. Work backward from the sale date and count five business days. That's your hard deadline to have an active MLS listing and a written postponement request delivered to the trustee.

If you're uncertain whether you still have time, the first call you make needs to be to an agent who understands foreclosure timelines — not a lender, not a loan modification company, not a bankruptcy attorney. Those conversations can happen in parallel, but the AB 2424 window requires immediate action.

How the Sale Process Works Once You've Postponed

The 60-day postponement isn't a vacation — it's a compressed sprint. Here's how experienced agents navigate it:

1. Price it to move, not to test. The 67% FMV floor is a minimum, not a target. You should price the home competitively at or near market value to attract the most qualified buyers quickly. This isn't a clearance sale — it's a real listing under real time pressure.
2. Go live on day one. Professional photography, full MLS syndication, and direct outreach to buyer's agents should all happen immediately. Every day of the 60-day window that passes without an offer is a day of leverage you've lost.
3. Get a buyer into escrow as quickly as possible. Opening escrow triggers the 45-day extension. Even if you're still negotiating terms, getting a contract executed and escrow opened gives you significantly more runway to close.
4. Communicate with the trustee. Your agent or real estate attorney should maintain contact with the trustee to confirm the postponement is in place and to submit the escrow opening notice as soon as a buyer is under contract.

In many West Valley markets — West Hills, Woodland Hills, Calabasas — homes in the $900K–$1.5M range have sold within 2–3 weeks when priced correctly. Even under a compressed timeline, finding a buyer during a 60-day window is entirely realistic if the marketing is aggressive and the price is right.

Your specific situation — the amount owed, existing liens, the home's condition, any title issues — will shape exactly how much time and flexibility you're working with. That's the conversation I have with every seller before we discuss strategy. It's the only way to know what's actually possible. If you have additional liens beyond your first mortgage, it's worth reviewing how liens get resolved at closing in California so there are no surprises at the escrow table.

AB 2424 vs. Your Other Options

AB 2424 isn't the only tool available to homeowners in pre-foreclosure. Here's how it compares:

Loan modification: If you can reinstate the loan or negotiate a modification with the servicer, that's always worth pursuing — but loan modification timelines are notoriously slow (60–120+ days), and servicers aren't required to approve. AB 2424 gives you a parallel path that doesn't depend on the lender's cooperation.

Short sale: A short sale is the right tool when you owe more than the home is worth. AB 2424 is designed for the opposite situation — you have equity, but the clock is running out. If you're underwater, the California short sale process involves a different set of steps and lender negotiation. Worth understanding the distinction clearly before deciding which path applies to you.

Deed in lieu of foreclosure: You hand the keys to the lender, the debt goes away, but so does any equity. It also typically carries a 2–4 year wait before you can qualify for a conventional mortgage again. If equity exists, there's almost no scenario where a deed in lieu is better than selling under AB 2424.

Chapter 13 bankruptcy: An automatic stay stops a trustee's sale immediately, and Chapter 13 allows you to repay arrears over 3–5 years. This option makes sense in specific circumstances, but it's complex, expensive, and leaves a 7-year mark on your credit. It's worth consulting a bankruptcy attorney as a parallel track — but it shouldn't be the first call you make.

AB 2424 + traditional sale: If you have equity, this is the best available outcome. You sell at market price, pay off the mortgage at close, keep the difference. Your credit takes the minimum possible hit from the missed payments — not from a completed foreclosure. And you walk away with money, not debt.

Important Limitations to Know

AB 2424 covers nonjudicial trustee's sales initiated by your mortgage lender. It doesn't stop:

• HOA foreclosures — if an HOA is foreclosing on delinquent assessments, AB 2424 doesn't apply
• Property tax lien sales — county tax collector auctions operate under separate rules
• IRS federal tax liens
• Mechanic's liens that have been foreclosed as a separate action

If you have multiple liens and you're unsure which entity is driving the foreclosure, your first step is understanding exactly what type of proceeding you're facing. The preliminary title report tells you everything about encumbrances on the property — and in a pre-foreclosure situation, running title early is non-negotiable.

The law also requires a licensed agent. FSBO doesn't qualify. This isn't just a technicality — it's built into the law because the agent's market analysis (the CMA establishing the 67% FMV floor) is a core part of the postponement request. The agent's professional judgment is what gives the trustee a defensible basis to honor the request.

If you're in a tenant-occupied property, standard California landlord-tenant law still applies. AB 2424 doesn't create any additional tenant protections or exemptions — you'll need to navigate existing disclosure and notice requirements alongside the AB 2424 timeline.

The LA County Context in Late 2026

This isn't a theoretical scenario. Notice of Default filings in Los Angeles County have been elevated since mid-2024, and that trend has continued into late 2026. The homeowners receiving those NODs aren't all underwater — many bought years ago and have significant equity, but they've missed payments due to job changes, medical expenses, or other hardships that have nothing to do with the home's value.

For those homeowners, AB 2424 is the difference between walking away with hundreds of thousands of dollars and walking away with nothing — or worse, walking away owing a deficiency judgment.

In West Hills, Woodland Hills, Calabasas, and the broader San Fernando Valley, home values have remained resilient. That equity is real. It belongs to the homeowner. The law was written to give them a real chance to access it.

If you're in this situation — or you know someone who is — reach out before the 5-business-day window closes. I work with sellers across Los Angeles County who are facing exactly this kind of timeline pressure, and understanding the full picture before making any moves is the only way to protect your options.

Frequently Asked Questions

What is AB 2424 and when did it take effect?

AB 2424 is a California law that took effect January 1, 2025. It gives homeowners facing a nonjudicial trustee's sale the right to request a 60-day postponement of the auction date, provided they list the home on the MLS with a licensed agent at or above 67% of its fair market value at least 5 business days before the sale. If a buyer opens escrow during the 60-day window, the trustee must grant up to 45 additional days to close.

Who qualifies for the AB 2424 foreclosure postponement in California?

The law applies to owners of 1–4 unit residential properties in California facing a nonjudicial trustee's sale. You must list the home on the MLS through a licensed real estate agent at a price at or above 67% of its fair market value, and submit your postponement request at least 5 business days before the scheduled auction. FSBO listings do not qualify.

Does AB 2424 work for all types of foreclosure?

No. AB 2424 applies only to nonjudicial trustee's sales initiated by mortgage lenders — the most common type of foreclosure in California. It does not stop HOA foreclosures, property tax lien sales, IRS liens, or mechanic's liens. If you have multiple liens in addition to your mortgage, you'll want to understand which type of foreclosure you're facing before relying on this law.

How does AB 2424 compare to a short sale?

A short sale is used when you owe more than the home is worth — the lender agrees to accept less than the payoff amount. AB 2424 is different: it's designed for homeowners who have equity but are running out of time before the auction date. With AB 2424, you're selling at market value (67%+ of FMV), keeping any equity above what you owe, and protecting your credit far better than a completed foreclosure.

What happens if no buyer is found during the 60-day postponement?

If no buyer opens escrow during the 60-day window, the trustee can proceed with the foreclosure sale on or after the postponed date. This is why the 5-business-day deadline to submit your request matters, and why pricing and marketing strategy during the 60 days is critical. An experienced agent familiar with distressed timelines can often find qualified buyers faster than a standard listing.

AB 2424 doesn't solve every problem in a pre-foreclosure situation — but for homeowners with equity and a sale date on the horizon, it creates a real window to protect what they've built. The key is acting before the 5-business-day deadline disappears.

If you're facing a trustee's sale in Los Angeles County and want to understand what your options actually look like, I'm available to walk through the numbers. Reach out anytime at jasonfranklinre.com.

About Jason Franklin
Jason Franklin is a licensed real estate broker and REALTOR® with The Dinsky Team at Equity Union in Sherman Oaks, California. A San Fernando Valley native licensed since 2016, he has closed over $50 million in career sales and ranks among the top 4% of local producers, specializing in luxury listings, investment properties, value-add flips, and seller representation across the West San Fernando Valley and Conejo Valley. Connect with Jason at jasonfranklinre.com.