Facing foreclosure in San Diego — what your options actually are

• You can sell untilThe moment the trustee's sale is held — not before
• Right to reinstateGenerally up to 5 business days before the sale date
• Who pays the arrearsEscrow, out of the sale proceeds — not you, up front
• Typical close7–14 days when there is a sale date on the calendar
• Cost to you$0 — no commissions, no repairs, no closing costs

The California foreclosure timeline, roughly

Most California foreclosures are nonjudicial, which means they run through the trustee rather than the courts. After you fall materially behind, the lender records a Notice of Default. Roughly three months later, if the loan has not been reinstated or otherwise resolved, the trustee can record a Notice of Trustee's Sale, which must be published and posted and sets the auction date at least twenty days out. You generally have the right to reinstate the loan by paying the arrears up to five business days before that sale, and the right to pay it off entirely right up until the sale happens.

The number that matters most to you is the sale date on the Notice of Trustee's Sale. As long as that date has not passed, a sale is possible. Once the auction is held, it is not, and any equity above what the lender was owed becomes a surplus funds claim rather than money in your account.

Why selling usually beats every other exit

If you have equity, a foreclosure hands it to the auction. A sale keeps it. Escrow pays the lender exactly what it is owed — principal, arrears, fees, trustee costs — and wires you the difference. We have closed deals where the seller walked away with a meaningful five- or six-figure check that would otherwise have evaporated at the courthouse steps.

If you have little or no equity, a sale can still be the better exit, and it may involve negotiating a short payoff with your lender. That takes longer and depends on the lender's cooperation. We will tell you honestly which of those two situations you are in on the first call, once we know the payoff and the arrears.

Please be careful who you talk to

A recorded Notice of Default is public, and the moment yours is recorded you will get letters, calls and door knocks. Some of it is legitimate. Some of it is people who want you to sign over your deed, take a "lease-back" arrangement, or pay an advance fee for loan modification help. In California, charging an advance fee for foreclosure-related loan modification services is prohibited, and anyone asking you to deed them your house outside of a normal escrow deserves your deep suspicion.

Whatever you decide about us, do this: keep every document, do not sign anything conveying title outside of escrow, and call a HUD-approved housing counselor — the service is free. You can also speak to your lender's loss mitigation department directly; a forbearance or modification may be available and costs you nothing to ask about.

Common questions