If you're behind on your mortgage payments and worried about losing your home, there's a new California law you need to know about. AB2424 went into effect on January 1, 2025, and it gives homeowners facing foreclosure some breathing room they didn't have before.

I'm writing this because I've seen too many families lose their homes when they could have sold them if they'd just had a little more time. This new law changes that.

Here's what AB2424 does for you:

More Time to Sell Your Home

The most significant change is this: if you're facing a foreclosure sale and you list your home with a licensed California real estate agent, you can get an extra 45 days. Here's how it works:

You need to submit a valid listing agreement to the foreclosure trustee at least 5 business days before the scheduled foreclosure sale date. Once they receive it, they must postpone the sale for 45 days. This gives you real time to market your home, find a buyer, and potentially sell it before the foreclosure happens.

And here's the even better part: if you actually get a purchase offer during those 45 days, you can submit that purchase agreement to the trustee (again, at least 5 business days before the rescheduled sale), and they must postpone the sale for another 45 days. That gives you time to close the sale.

Source: California Assembly Bill 2424, signed by Governor Newsom on September 20, 2024 (California Legislative Information, National Law Review)

Your Home Can't Be Sold Too Cheap (at first)

AB2424 also protects you from having your home sold at auction for way less than it's worth. The law now requires that at the first foreclosure auction, your home cannot be sold for less than 67% of its fair market value. The lender has to provide the trustee with a fair market value assessment at least 10 days before the sale.

If nobody bids at least 67% of the fair market value, the sale has to be postponed for at least 7 days before they can sell it without that minimum price requirement.

Source: California Mortgage Association analysis of AB2424, December 2024

Third Parties Can Now Receive Foreclosure Notices on Your Behalf

Sometimes when you're overwhelmed, it helps to have someone else in your corner. AB2424 now allows you to designate a third party - like a family member, a HUD-certified housing counselor, or an attorney - to receive copies of your foreclosure notices. They just need to record a request to receive these notices. This means someone who can help you can stay informed about what's happening, even if you're struggling to keep track of everything yourself.

Source: Sternberg Law Group analysis of AB2424, March 2025

Why This Matters

During the last foreclosure crisis, I saw homeowners who wanted to sell their homes but simply didn't have enough time to find a buyer before the foreclosure sale happened. Some lenders would delay, many wouldn't. It was heartbreaking to see people lose their homes when they were trying to do the right thing.

AB2424 makes that delay mandatory. It gives you a real chance to sell your home on the open market instead of losing it at auction.

What You Should Know

These postponement rights only work if you follow the rules exactly. You must submit your listing agreement or purchase agreement at least 5 business days before the scheduled sale, and it needs to be sent by certified mail or overnight courier with tracking and signature confirmation. Each postponement option (listing agreement and purchase agreement) can only be used once.

This law applies to residential properties with 1 to 4 units.

If You're Facing Foreclosure

Please don't wait until the last minute. The sooner you reach out for help, the more options you have. Talk to a foreclosure prevention counselor, contact your loan servicer about options, and if selling makes sense for your situation, get connected with a real estate professional who understands this process.

AB2424 gives you tools you didn't have before, but you have to use them before time runs out.

If you have questions about how this law might apply to your situation, or if you know someone who's struggling with their mortgage, please reach out. I'm here to help, not to sell you something. Sometimes just understanding your options makes all the difference.

Helen K. Burke, REALTOR® | Residential Sales, Probate & Trust, NOD | Intero Real Estate | DRE #01175866 | 408-835-8967

Sources cited

• California Assembly Bill 2424 (signed September 20, 2024, effective January 1, 2025)

• California Mortgage Association, "AB 2424: The New Normal in Non-Judicial Foreclosure" (December 2024)

• National Law Review, "California Passes Law Extending New Protections to Mortgage Borrowers" (October 2024)

• Sternberg Law Group, "Foreclosure Sale Postponement Under California's AB 2424" (March 2025)