How California's AB 2424 Gives You 90 Days to Sell at Full Market Value
California Assembly Bill 2424 (AB 2424), effective January 1, 2025, allows homeowners facing foreclosure to postpone their auction by up to 90 days simply by listing their home for sale with a licensed real estate broker. This law gives you time to sell at full market value instead of accepting lowball cash buyer offers or losing everything at auction.
Here's exactly how AB 2424 works, who qualifies, and how to use it to protect your equity.
What Is AB 2424?
AB 2424 is a California law that amended the state's non-judicial foreclosure procedures to add new protections for homeowners. The law has three main components:
AB 2424's Three Protections
- Listing Agreement Postponement: Submit a listing agreement → get 45 days
- Purchase Agreement Postponement: Submit a purchase agreement → get another 45 days
- 67% Minimum Bid Rule: Auction can't accept bids below 67% of fair market value at initial sale
The result: Up to 90 days of additional time to sell your home at full market value through a traditional sale, not a fire sale to cash buyers.
Want to know if AB 2424 applies to your situation?
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The Two-Step Postponement Process
Listing Agreement Postponement (First 45 Days)
What You Need:
- A valid listing agreement with a California-licensed real estate broker
- Agreement that property will be listed on a publicly available marketing platform (like MLS)
When to Submit:
At least 5 business days before your scheduled foreclosure sale date
How to Submit:
Provide a copy of the listing agreement to the foreclosure trustee via certified mail or overnight courier with tracking. The trustee's contact information is on your Notice of Trustee's Sale.
What Happens:
The trustee MUST postpone the foreclosure sale for at least 45 days. This is mandatory, not discretionary.
Limitations:
- Can only be used ONCE per foreclosure
- Must meet the 5 business day deadline
Purchase Agreement Postponement (Second 45 Days)
What You Need:
- A bona fide, fully executed purchase agreement
- Purchase price equal to or greater than the total unpaid balance of all recorded liens
When to Submit:
At least 5 business days before the rescheduled foreclosure sale date
How to Submit:
Provide a copy of the purchase agreement to the foreclosure trustee via certified mail or overnight courier with tracking
What Happens:
The trustee MUST postpone the foreclosure sale for another 45 days
Limitations:
- Can only be used ONCE per foreclosure
- "Bona fide" means legitimate: the buyer must have financing capability or proof of funds
- Purchase price must cover all debts secured by the property
Total AB 2424 Protection: Up to 90 Days
| Postponement | Document Required | Days Added | Deadline |
|---|---|---|---|
| First | Listing Agreement | +45 days | 5 business days before original sale |
| Second | Purchase Agreement | +45 days | 5 business days before postponed sale |
| Total | Both | +90 days |
Have a Sale Date Coming Up?
Understanding the law is one thing. Executing it correctly is another. If you have a foreclosure sale date approaching and want to know if AB 2424 can help, I can walk you through your specific timeline.
Let's Look at Your Timeline(213) 444-2225 • Quick call. No cost. No obligation.
The 67% Minimum Bid Rule
AB 2424 also added a crucial protection at auction:
The Rule
At the INITIAL foreclosure sale, the trustee cannot accept any bid that's less than 67% of the property's fair market value.
How It Works:
- The lender must provide the trustee with the property's fair market value (FMV) at least 10 days before the sale
- FMV can be determined by broker price opinion, appraisal, or automated valuation model
- If no bid meets the 67% threshold, the sale must be postponed at least 7 days
- After the 7-day postponement, the property can be sold without the minimum bid requirement
💡 Why This Matters
Even if you can't sell before auction, your home can't be sold for pennies on the dollar at the first attempt. This protects against predatory low-ball bids. But don't rely on this alone. Selling before auction almost always gets you more equity than even a protected auction sale.
Who Does AB 2424 Apply To?
AB 2424 applies to:
- Non-judicial foreclosures (the most common type in California)
- Residential properties with 1-4 dwelling units
- Both owner-occupied and non-owner-occupied properties
- All types of loans (first mortgages, second mortgages, HELOCs, etc.)
AB 2424 does NOT apply to:
- Judicial foreclosures (those going through the court system)
- Commercial properties
- Properties with more than 4 units
- Tax foreclosures
Step-by-Step: How to Use AB 2424
Week 1: Determine Your Timeline
- Find your Notice of Trustee's Sale
- Identify your scheduled foreclosure sale date
- Count back 5 business days: that's your deadline for the listing agreement
Week 2: Engage a Real Estate Broker
- Contact a California-licensed real estate broker who understands AB 2424
- Discuss your situation, timeline, and home value
- Sign a listing agreement
Week 3: Submit to Trustee
- Make a copy of your signed listing agreement
- Send to the foreclosure trustee (certified mail or overnight courier with tracking)
- Keep proof of delivery
- Verify the trustee acknowledges receipt and postponement
Weeks 4-6: Market Your Home
- Your broker lists your property on MLS and other platforms
- Marketing, showings, and open houses
- Receive and negotiate offers
Week 7+: Secure a Buyer
- Accept an offer that covers your total debt
- Submit the purchase agreement to the trustee (5 business days before postponed sale)
- Second 45-day postponement triggered
- Complete the sale and closing
Need a Broker Who Knows AB 2424?
AB 2424 requires a California-licensed broker to sign your listing agreement. I've helped LA and Orange County homeowners use this law to get 90 days and sell at full market value. Happy to talk through whether it makes sense for your situation.
Let's Talk Through Your Options(213) 444-2225 • No pressure. Just information.
Common Mistakes to Avoid
Mistake 1: Missing the 5 Business Day Deadline
If you submit your listing agreement less than 5 business days before the sale, the trustee is NOT required to postpone. Count carefully and submit early.
Mistake 2: Using a Verbal Agreement
The listing agreement must be in writing, signed, and valid under California law. A verbal commitment doesn't count.
Mistake 3: Listing Below Debt Amount
If your purchase agreement is for less than what you owe, it may not qualify for the second postponement. The purchase price must equal or exceed your total secured debt.
Mistake 4: Not Verifying Trustee Receipt
Submit your documents via certified mail or overnight courier with tracking. Verify the trustee received them and will honor the postponement. Keep all delivery confirmations.
Mistake 5: Waiting to List
Yes, AB 2424 gives you 90 days. But those days go fast. The earlier you list, the more time you have to market properly and get the best price. Don't treat the postponement as a delay tactic; treat it as selling time.
AB 2424 vs. Other Foreclosure Delays
| Method | Days Added | Cost | Requirements |
|---|---|---|---|
| AB 2424 Listing | 45 days | Free | Listing agreement + 5-day deadline |
| AB 2424 Purchase | 45 days | Free | Purchase agreement + 5-day deadline |
| Loan Mod Application | Varies | Free | Complete application pending review |
| Bankruptcy Filing | Weeks-Months | Attorney fees | Must file bankruptcy |
| Reinstatement | Stops foreclosure | Full arrears | Must pay all amounts due |
💡 Why AB 2424 Is Unique
AB 2424 requires no money upfront and doesn't require lender approval. You trigger it yourself with a simple listing agreement. It can also be combined with other strategies. Many homeowners try loan modification first, and if denied, pivot to an AB 2424 market sale.
Why Law Firms Explain AB 2424 But Can't Execute It
If you've researched AB 2424, you've probably found excellent legal explanations from California law firms like Sternberg Law, Shapero Law, and others. They understand the law perfectly.
But here's the key insight: AB 2424's protection is triggered by a listing agreement with a licensed real estate broker. Attorneys are licensed to practice law, not to list properties for sale.
- Attorneys can: Explain the law, advise on strategy, challenge improper foreclosure procedures
- Realtors can: Sign the listing agreement that triggers AB 2424, market your home, negotiate with buyers
To actually USE AB 2424, you need a realtor who understands the law AND can execute the listing agreement.
Frequently Asked Questions
Ready to Use AB 2424?
If you're facing foreclosure and have a sale date approaching, AB 2424 could give you 90 days to sell at full market value. I can help you understand if it's the right strategy for your situation and execute it correctly.
Let's Talk Through Your Situation(213) 444-2225 • Confidential. No pressure. No judgment.
