The foreclosure process in California has long been viewed as final once the auction hammer drops, leaving homeowners with few options to recover their property after a foreclosure sale. However, changes in California foreclosure law in 2021 have introduced new opportunities for homeowners, especially when combined with a Chapter 13 bankruptcy filing.
Under California Civil Code (CC) 2924m, there is now a window of opportunity following a foreclosure auction where the sale is not final, giving certain parties—such as eligible tenants or nonprofit organizations—a chance to submit a higher bid or give notice of intent to bid. More importantly for bankruptcy attorneys and homeowners, this law means that a bankruptcy filing after the foreclosure auction but before the sale is finalized may allow the homeowner to keep their property.…
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