Received a Notice of Default? Why California Law AB 2424 is the 'Pause Button' You Didn't Know You Had

Here is what most homeowners do not know yet. California’s new law AB 2424 just gave you a powerful pause button, and it could save you tens or even hundreds of thousands of dollars in equity.

I am breaking it down in plain English so you can clearly see how this law works and why it changes everything for San Diego homeowners facing foreclosure.

What Is AB 2424 and Why Does It Matter Right Now?

AB 2424 is a brand new California foreclosure protection law that went into effect January 1, 2025. Its goal is simple. It gives homeowners real, guaranteed extra time to sell their house the traditional way on the open market instead of being forced into a desperate low value sale.

Here is exactly what the law does for you.

The 45 Day Listing Agreement Pause

If you list your home for sale with a licensed California real estate broker and get that listing agreement to the trustee at least 5 business days before the scheduled foreclosure sale, the trustee must postpone the sale for 45 days.

This is not a request. It is mandatory.

Those 45 days give you the breathing room to price your home correctly for today’s San Diego market, stage it properly, take professional photos, reach real retail buyers who will pay full market value, and negotiate a clean sale that pays off your loan and leaves you with your equity.

You are no longer going to have the pressure to sell it to the first bidder or to accept a lowball offer from a so-called investor. Now you have time to put your house absolutely beautiful for the market. We currently have home selling programs designed to help your house be more marketable so you can get the maximum amount of value for your house. That way the lender will get paid, and hopefully you can also protect the equity that you have worked so hard for.

The Additional 45 Day Purchase Agreement Extension

Once you have a serious buyer and a signed purchase agreement, you can submit it to the trustee (again at least 5 business days before the new sale date) and receive another 45 day postponement.

That brings your total protected time to up to 90 days. That is more than enough time to close escrow and walk away with the equity you have worked so hard to build.

Minimum Bid Protection at Auction

Even if your home does not sell within the 90 days, AB 2424 adds one more safeguard. At the very first foreclosure auction the trustee cannot accept a bid lower than 67 percent of the property’s fair market value.

This stops the worst case scenario of your home being sold for rock bottom prices while you lose most of your equity.

Why This Law Is a Game Changer for San Diego Homeowners

In San Diego County, especially in North County, coastal communities, and strong inland neighborhoods, home values remain solid. Many homeowners still have significant equity even after falling behind on payments.

Before AB 2424 the pressure was brutal. Now you have a legal pathway to sell the right way and keep what belongs to you.

I have already helped several local families successfully use this law. One couple in Oceanside received their Notice of Default, listed their home, and closed with a retail buyer just 68 days later. They walked away with over 180,000 dollars more than any cash investor offer they had received.

What You Should Do Right Now If You Have Received a Notice of Default

Do not panic and do not sign anything yet. List your home immediately with an experienced local agent who understands the AB 2424 process. Get the listing agreement to the trustee at least 5 business days before the sale date. Move fast because pricing, staging, marketing, and negotiation all matter.

Ready to Hit the Pause Button and Protect Your Equity?

If you have received a Notice of Default in San Diego County, time is no longer working against you. AB 2424 just made it work for you.

I offer free, no pressure consultations specifically for homeowners in this situation. I will review your exact timeline, run current comps for your neighborhood, and show you exactly what your home could sell for in today’s market.

You do not have to face this alone. You do not have to sell cheap. And you definitely do not have to lose the equity you have built.

Reach out today, even if you are not sure what your next step is. A quick call or text can give you clarity and real options.

Call or text me directly or send me a message. I am here in San Diego County and I help families protect their homes and equity every single day.

Frequently Asked Questions About AB 2424

Does AB 2424 apply to every home in California? Yes, it applies to most 1 to 4 unit residential properties going through non judicial foreclosure.

How soon after receiving a Notice of Default should I list my house? The sooner the better. The clock starts ticking toward your sale date.

Can I still try for a loan modification while using AB 2424? Absolutely. The postponements do not prevent you from working with your lender on other solutions.

What if my home does not sell in the 90 days? You still have the 67 percent minimum bid protection at the first auction, which helps preserve more of your equity.