What is a Notice of Default in California?

A Notice of Default (NOD) is the first formal step in the non-judicial foreclosure process in California. After a homeowner misses approximately 90 days of mortgage payments, the lender's trustee records an NOD with the county recorder. Once recorded, the homeowner has 90 days to cure the default before a Notice of Trustee's Sale can be issued, which sets the auction date.

How much time do I have after a Notice of Default in LA County?

Under California Civil Code Section 2924, you have a minimum of 90 days after the NOD is recorded before a Notice of Trustee's Sale can be issued. The auction itself is held at least 21 days after the Notice of Trustee's Sale. In practice you have roughly 111 days from the date of NOD recording to the earliest possible auction, though most cases run longer.

What are my options if I received an NOD?

You generally have four paths: (1) Reinstate the loan by paying the missed amount plus fees, (2) Pursue a loan modification or refinance with your current lender, (3) List the home for sale at fair market value to preserve your equity, or (4) Allow the foreclosure to proceed. Each path has different financial outcomes depending on your equity position.

Do I lose my equity if I sell during pre-foreclosure?

No. If you sell your home for fair market value before the trustee's sale, the proceeds first pay off the loan and any other liens, then closing costs, and the remaining equity is yours. The key constraint is timing — you generally need to be in escrow before the trustee's sale date.

LA County Notice of Default — Your Options. Honest Math.

The four options under a Notice of Default

Under California Civil Code §2924, a Notice of Default starts a clock — not an ending. You have four real paths, and the right one depends on your equity, your timeline, and your goals.

1. Reinstate the loan

Pay the missed payments, late fees, and attorney costs. The clock stops. Works when the default was temporary and you can write the check.

2. Loan modification

Renegotiate terms with your servicer. Lower rate, longer amortization, or principal forbearance. Works when income has recovered but the original payment is too steep.

3. Sell at fair market value

Pay off the loan, take your equity, walk away with your credit intact. Works when you have meaningful equity and can close before the trustee's sale date.

4. Let it proceed

Allow foreclosure to complete. Lose the property and any equity above the loan balance. The path of last resort — but sometimes the right call.

Most homeowners who reach this page have meaningful equity in their home. Selling at market value is often the most protective path because it preserves credit, captures equity, and ends the stress of an uncertain auction. Below is a calculator that lets you see your own numbers honestly — line by line.

Seller Closing Cost Estimator

Run the math on your own property.

Enter your estimated sale price, your current loan balance, and any other liens. The estimator shows you every line item you’ll see at closing — including what Connor charges to list it. No comparisons against unnamed competitors. Just the actual costs.

Estimated Sale Price

Rough estimate is fine. Connor can dial this in for your specific home.

Current Loan Balance

What you currently owe on the mortgage (and any second/HELOC).

Buyer-Agent Concession (optional)

Post-March 2024 NAR settlement, this is fully optional and negotiated by the buyer with their own agent. Many sellers offer $0 to $20,000 to stay competitive. You decide.

HOA Transfer Fee (if any)

Leave at $0 if your home isn’t in an HOA.

Your seller-side closing costs

Listing fee (Connor — flat) $17,000

Buyer-agent concession (your choice) $0

Escrow fee (LA County avg) $2,950

Title insurance (seller) $2,300

LA County transfer tax (0.11%) $935

HOA transfer fee $0

Prep, photos, light staging $1,500

Total estimated seller costs $24,685

Loan payoff $475,000

Estimated equity in your pocket $350,315

Estimates use LA County averages for escrow, title, and transfer tax (county rate; cities add their own — some cities like Los Angeles, Culver City, and Santa Monica add documentary transfer tax that significantly increases this line). Your actual closing statement will reflect exact amounts. Buyer-agent compensation is negotiated separately between the buyer and their agent post-March 2024 NAR settlement; sellers may choose to offer a concession to remain competitive but are not required to. Connor MacIvor handles seller representation only.

Want the full picture?

Get the LA County NOD Options Guide

A plain-English breakdown of the four options, the California foreclosure timeline, common mistakes homeowners make in the first 30 days after an NOD, and how to decide which path is right for your situation. Sent as a PDF to your inbox. No phone calls, no pressure.

If you’d rather just have a conversation, book a 17-minute call. We look at your specific numbers together. If selling makes sense, I’ll tell you. If reinstatement or modification is better, I’ll tell you that too. Book the call →

Connor MacIvor

28 years California real estate · 17 years LAPD full-time + 3 years Level III Reserve · Sellers Only Agent · Founder, Fair Fixed Fee Realtor Certification

I charge a flat $17,000 to list and sell your home. That’s the only commission number I can tell you about because it’s the only one I control. Everything else on this page is line-item math from public sources. The reason I built this site is simple: distressed sellers get hit with the wrong incentives at the worst possible time, and most of what gets marketed to them is designed to take advantage of that. I’m trying to do the opposite. If we’re a fit, we work together. If we’re not, you keep the math.