Receiving a Notice of Default (NOD) in California is a serious warning. It means you’ve fallen behind on mortgage payments, and your lender has officially started the foreclosure process. An NOD signals that your loan is in default and puts your property at risk of being sold at auction if the situation isn’t resolved.
While a Notice of Default is stressful, it’s also an important window of opportunity to take action, explore your options, and protect your investment.
Property Focus can help during this critical time by allowing you to monitor your property’s status, research foreclosure activity, track neighborhood trends, and assess your best next steps with reliable, up-to-date data. Having the right information can make all the difference.
What Is a Notice of Default in California?
A Notice of Default (NOD) is a formal legal document filed by a lender when a homeowner falls significantly behind on their mortgage payments. Under California foreclosure law, it is the first official step in the non-judicial foreclosure process.
The lender issues a Notice of Default when the homeowner is typically at least 90 days delinquent on their loan. Filing the NOD notifies the homeowner—and the public—that the lender intends to begin foreclosure proceedings unless the default is corrected.
Once the Notice of Default is recorded with the county, the homeowner enters a critical phase:
- They have 90 days to “cure” the default by paying the overdue amounts plus applicable fees.
- If the homeowner fails to catch up on payments during this period, the lender can proceed to file a Notice of Trustee Sale, setting a date to auction the property.
The Notice of Default is serious, but it also creates an opportunity. Homeowners still have time to reinstate their loan, modify their mortgage, sell the property, or explore other solutions before losing the home.
Monitoring your property status through Property Focus during this time is key—it helps you stay informed about foreclosure filings, property value trends, and neighboring market activity that could influence your next move.
What Happens After a Notice of Default Is Filed?
Once a Notice of Default (NOD) is filed in California, the clock starts ticking—but homeowners still have important rights and options available.
The 90-Day Reinstatement Period
After the NOD is recorded, homeowners enter a 90-day reinstatement period. During this time, you have the legal right to “cure” the default by paying the overdue loan amounts, plus any fees and penalties. If you can bring the loan current within this period, the foreclosure process stops, and you keep your home.
Homeowner Rights After Receiving an NOD
Even after an NOD is filed, you still retain ownership of your home. You have the right to:
- Reinstate the loan by paying the arrears.
- Negotiate with your lender for a loan modification, repayment plan, or forbearance.
- Sell the property, often through a traditional sale or short sale if necessary.
- Consult a housing counselor or foreclosure attorney for legal guidance.
Moving Toward a Notice of Trustee Sale
If the default is not cured within 90 days, the lender can move forward by filing a Notice of Trustee Sale. This sets a date for your property to be auctioned, typically about 20 days after the Trustee Sale notice is recorded.
At this point, options become more limited, and time becomes critical.
Monitoring your property status and neighborhood market conditions using Property Focus can help you act faster—whether that means catching up, selling before auction, or exploring other solutions before it’s too late.
Common Reasons Homeowners Receive a Notice of Default
A Notice of Default (NOD) doesn’t happen overnight. It usually follows several missed obligations that breach the terms of your mortgage agreement. Here are the most common reasons lenders issue an NOD in California:
Missed Mortgage Payments
The most frequent cause is falling behind on monthly mortgage payments. Typically, once a homeowner is 90 days late, the lender has the right to file a Notice of Default to start the foreclosure process. Financial hardship, job loss, medical bills, or other unexpected expenses often contribute to this situation.
Failure to Pay Property Taxes
Even if you’re making regular mortgage payments, failing to pay your property taxes can still trigger a default. In many cases, lenders pay property taxes on behalf of the homeowner through an escrow account. If those taxes aren’t being properly paid or reimbursed, the loan can be considered in default.
Breach of Loan Terms (e.g., Failing to Maintain Insurance)
Mortgage agreements typically require you to maintain homeowner’s insurance to protect the property. If coverage lapses—or you fail to meet other obligations like HOA fees tied to the mortgage—the lender can issue a Notice of Default even if your mortgage payments are current.
Understanding why defaults happen helps you take early action if warning signs appear.
Using Property Focus, you can stay on top of your property records, monitor potential liens or notices, and keep your information up to date—giving you more time to protect your investment before small issues turn into major problems.
What Homeowners Can Do After Receiving a Notice of Default
Receiving a Notice of Default (NOD) can feel overwhelming, but it’s important to remember: you still have options. Taking quick, informed action can help you avoid foreclosure and protect your financial future.
Options to Cure the Default
During the 90-day reinstatement period, you have the right to reinstate the loan by paying the overdue amount plus any late fees and penalties.
If a lump-sum payment isn’t possible, you might work with your lender to set up a forbearance agreement (temporarily reducing or pausing payments) or a repayment plan (adding missed payments onto future ones). Acting early keeps more options open.
Loan Modification, Refinancing, or Selling the Property
If reinstating the loan isn’t realistic, you may be able to request a loan modification, which restructures your loan to make payments more affordable.
Some homeowners pursue refinancing if they still qualify, while others choose to sell the home—especially if market conditions are favorable—to avoid foreclosure and protect their credit.
Tip: Property Focus can help assess your home’s current value and neighborhood trends if you’re considering selling.
Consult a Housing Counselor or Foreclosure Attorney
It’s wise to seek professional advice. A HUD-approved housing counselor can help you negotiate with your lender, while a foreclosure attorney can explain legal rights and fight wrongful foreclosure actions if needed.
By staying proactive—and using tools like Property Focus to track property status, value, and neighborhood conditions—you can make better decisions at every step. Waiting too long narrows your options, so early action is key.
How Property Focus Can Help During a Notice of Default
Facing a Notice of Default is stressful, but staying informed can give you the edge you need to make smart moves. Property Focus offers powerful tools that can help you stay ahead during this critical time.
Monitor Changes in Property Status and Ownership History
Property Focus allows you to easily track any updates related to your property’s ownership, title status, and foreclosure filings. This real-time visibility helps you respond faster if additional legal actions are taken or new documents are recorded.
Track Foreclosure Activity and Pre-Foreclosure Listings in Your Area
Knowing what’s happening around you is just as important. Property Focus helps you monitor foreclosure activity and pre-foreclosure listings in your neighborhood, giving you a sense of local market pressure and how quickly properties like yours are moving.
Research Neighborhood Trends to Evaluate Selling Options
If selling becomes the best path to avoid foreclosure, Property Focus can help you understand neighborhood value trends. You’ll see recent sales, price shifts, and school district impacts, helping you price your home competitively and make smarter selling decisions.
Access Full Reports to Prepare for Refinancing, Selling, or Negotiating with Lenders
When you’re negotiating a loan modification, applying to refinance, or preparing to sell, having complete and accurate property information is critical. Property Focus provides full property reports that include ownership history, sales data, and neighborhood insights—giving you the documentation needed to support your case.
With Property Focus, you’re not left guessing—you’re equipped with the facts to make confident, informed decisions when they matter most.
Conclusion
Receiving a Notice of Default is serious, but it’s not the end if you act quickly. Homeowners still have important options—whether it’s curing the default, negotiating new terms, or selling the property before foreclosure.
Property Focus can be a crucial tool during this time, helping you monitor your property’s status, track neighborhood trends, and access full reports to guide smarter decisions.
If you’re facing or recovering from a Notice of Default, use Property Focus to stay informed, protect your investment, and take control of your next steps with confidence.
FAQs
How long after a Notice of Default can a home be foreclosed in California?
Typically, foreclosure can begin about 90 days after an NOD if the default is not cured.
Can I sell my home after receiving a Notice of Default?
Yes, homeowners can still sell during the reinstatement period or even during the foreclosure process.
Does a Notice of Default automatically mean foreclosure is guaranteed?
No, many homeowners cure their defaults or negotiate new loan terms before foreclosure is completed.
How can Property Focus help if I receive a Notice of Default?
Property Focus lets you track your property’s foreclosure status, monitor neighborhood sales, and evaluate options like selling before auction.
Can a Notice of Default affect my credit immediately?
Yes, lenders often report missed payments leading up to an NOD, which can quickly lower your credit score before foreclosure even occurs.
