California SB 1079 · Civil Code §2924m
Be the first to know before REO.
Bid on California foreclosures after the auction, before the bank takes them back. Owner occupants and eligible nonprofits get a 45 day window to outbid the auction winner. We follow these properties and update their deadlines for you, so nothing slips by.
15
Days to send notice
Written notice of intent to the trustee
45
Days to submit a bid
Certified funds plus your affidavit
5 PM
Day 45, winner set
Highest eligible bid wins
How it works
Under Civil Code §2924m(a)(3), eligible bidders can bid after the scheduled foreclosure sale. The window is short.
Step 1 · By day 15
Send your notice of intent
Mail a nonbinding written notice to the foreclosure trustee with delivery confirmation.
Step 2 · By day 45
Submit your bid
Bid above the last highest bid in certified funds, with an affidavit naming your bidder category.
Step 3 · Day 45
Highest eligible bid wins
The winner is set at 5 PM on day 45. Losing bids are returned.
This is a plain-language summary. Read the full text of California Civil Code §2924m.
Who qualifies
Under Civil Code §2924m, two groups can bid after the foreclosure sale.
Prospective owner-occupant
A person who will live in the home as a primary residence for at least one year and has no tie to the borrower.
Eligible nonprofit bidder
Qualifying nonprofits, community land trusts, limited equity housing cooperatives, and public agencies.
This is a plain-language summary. Read the full text of California Civil Code §2924m.
Before you bid
Distressed property is cash only and as is. Three short guides cover what to check first.
Title and documents
Lien priority, title reports, and closing costs you carry.
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Start with a title report, or search the county recorder’s general index yourself. Check the lien position: you take the owner’s interest under the deed of trust that was foreclosed, subject to any senior liens. Junior liens are usually wiped out. Make sure every owner of record signed the original loan documents. Transfer tax and the cost of recording the trustee’s deed are on you and are not part of your bid.
Value and repairs
Comps and contractor bids for flips, rents and vacancy for holds.
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Flipping: Check what similar homes sell for in the area, using the property information report or a real estate agent. Get a contractor’s estimate for repairs. If the home is occupied, start with a drive-by to spot a worn roof, paint or other visible issues.
Buying to hold: Know the market rents and vacancy rate, and still get a repair estimate. Before you rent it out, ask a real estate attorney about local rules such as rent control or short term rental limits.
Financing
Why it is cash only, and how hard money bridges to a refinance.
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Foreclosure purchases are cash only and as is. Most lenders won’t finance an occupied home or one without an interior inspection. Many buyers use a hard money loan to buy, then refinance into a traditional loan shortly after.recording the trustee’s deed are on you and are not part of your bid.
Get In touch
(949) 310-9736
Email matt@afterauctionbid.com