Guide
California AB 2424, explained.
The short answer
AB 2424 lets a California homeowner postpone a scheduled foreclosure sale in two steps. Give the trustee a listing agreement with a licensed broker at least five business days before the sale and the sale must be postponed at least 45 days. Then give the trustee a signed purchase agreement at least five business days before the new date and it must be reset at least 45 days out. That is two 45 day steps, not an automatic 90.
Joe Hall, Realtor · Ventura County · About Joe
Step one: the listing agreement
List the home with a licensed California real estate broker and get the listing agreement to the trustee at least five business days before the scheduled sale. The trustee must postpone the sale at least 45 days.
The listing must ask at least the outstanding loan balance and run at least 45 days.
Step two: the purchase agreement
If you sign a purchase agreement during that window and the trustee receives it at least five business days before the new sale date, the sale must be reset at least 45 days after the trustee receives it, giving you time to close.
The purchase price must be at least the unpaid balance of the obligations secured by the property.
Who it covers
Residential property with no more than four units. It took effect January 1, 2025.
A second protection at auction
The lender must give the trustee a recent fair market value assessment, and at the first sale the property cannot be sold for less than 67% of that value.
Why a Realtor matters here
Step one requires a listing with a licensed broker. Joe is a Ventura County Realtor who has spent his career on distressed property, so he can put the listing in place and use the time to sell for the most you can get.
Questions
Quick answers.
Is AB 2424 an automatic 90 day postponement?
No. It is two separate steps of at least 45 days each: one after a qualifying listing agreement, and one after a signed purchase agreement.
How many days before the sale must the trustee receive the listing agreement?
At least five business days before the scheduled sale.
Does AB 2424 apply to rental or multi-unit property?
It applies to residential property of up to four units.
When did AB 2424 take effect?
January 1, 2025.
Related guides
How long does foreclosure take in California?
As a rule of thumb, about 210 days from your first missed payment.
Read the answerGuideWhat is a Notice of Default in California?
A Notice of Default (NOD) is the lender's formal, recorded warning that you have broken your mortgage contract.
Read the answerGuideBehind on your mortgage? Do this first.
Don't isolate yourself, and don't stop communicating with the lender.
Read the answerTalk to Joe.
Every situation is different. Tell Joe where things stand and he will walk you through your real options.