Note #1: We are not attorneys and cannot give legal advice; however, we can and do share what we have researched and studied as well as the results that we have observed.
Note #2: If you miss the window of opportunity for this relief, you may still be able to file for bankruptcy or use some other mainstream (or non-mainstream) tactic to stop the sale and then use this new tactic for relief in the future.
Note #3: If your home does fall through to a sale date, most who leverage our post-sale research stay in their homes 9-18 months or longer or shape some other positive outcome instead of just just handing the keys to the banks or their investor buddies (see the RPDR Home Page for more detail).
Secret – List Your Property with a Realtor Even if you Don’t Intend to Sell (45 day’s relief)
We’ve seen this work for homeowner’s who list the home with actual intent to sell and also for those who list their property above market value just for a temporary relief.
Effective January 1, 2025, California Civil Code section 2924f(e)(1) provides as follows:
“With respect to residential real property containing no more than four dwelling units that is subject to a power of sale contained in any deed of trust or mortgage, a sale of the property under the power of sale shall not be conducted until the expiration of an additional 45 days following the scheduled date of sale pursuant to subdivision (a) or (c) of Section 2924g if the trustee receives, at least five business days before the scheduled date of sale, from the mortgagor or trustor, by certified mail with the United States Postal Service or by another overnight mail courier service with tracking information that confirms the recipient’s signature and the date and time of receipt and delivery, a listing agreement with a California licensed real estate broker to be placed in a publicly available marketing platform for the sale of the property at least five business days before the scheduled date of sale. The provisions of this paragraph shall not be used to postpone the scheduled sale date more than once.”
We’ve seen homeowners leverage this law to buy time for several reasons:
- to actually sell the property and get the equity out for those willing to sell
- to complete an application for a loan modification
- to secure outside funding and bring the loan current
- to refinance
- to simply delay (usually when there is little to no equity in the property)
Timing:
According to the code, “if the trustee receives, at least five business days before the scheduled date of the sale, from the mortgagor or trustor …”
Generally, five business days equates to seven calendar days; however, it is important to take into account holidays.
How to send:
According to the code, “by certified mail with the United States Postal Service or by another overnight mail courier service with tracking information that confirms the recipient’s signature and the date and time of receipt and delivery“
If it were us, we would make sure to send it with a signature confirmation (such as USPS Return Receipt) that confirms the recipient’s signature as specified in the code.
What gets sent:
According to the code, “a listing agreement with a California licensed real estate broker to be placed in a publicly available marketing platform for the sale of the property at least five business days before the scheduled date of sale”
If it were us, we would also send a cover letter referencing California Civil Code section 2924f(e)(1)
What to expect:
When the trustee timely receives a listing agreement with signature confirmation, homeowners can expect that the trustee will postpone the sale date by 45 days or more to allow the homeowner time to sell the house and get a purchase agreement for the sale of the property; and, if such purchase agreement is then timely and properly provided in accordance with California Civil Code section 2924f(e)(2), we can expect that the trustee will postpone the sale date further to allow escrow to close.
Questions?
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Real Property Defense Research