California mortgage assistance programs in 2026

California has the strongest state-level foreclosure protections in the country — including a new law effective January 2026 that requires lenders to fully complete any loss-mitigation review before proceeding with foreclosure. The original HAF program closed in early 2026, but CalHFA counselors, the CalAssist disaster relief fund, and the Homeowner Bill of Rights give California homeowners tools that do not exist in most other states.

Last reviewed: May 2026 · About this site

How California non-judicial foreclosure works

California uses a non-judicial trustee sale process for most residential mortgages, governed by Civil Code Sections 2924–2924k. The process does not require a court lawsuit — but California law imposes more procedural requirements on lenders than almost any other non-judicial state:

• Pre-default contact required: Before recording a Notice of Default, the servicer must contact you — in person or by phone — to discuss options to avoid foreclosure and provide HUD counseling information. This requirement applies to most California first-lien owner-occupied loans.
• Notice of Default (NOD) recorded: After 120+ days of delinquency, the lender can record a NOD with the county recorder's office. The NOD starts a 90-day reinstatement period during which you can bring the loan current.
• 90-day cure window: From the NOD recording date, you have 90 days to reinstate the loan by paying all past-due amounts, late fees, and costs. This is the most important window for most homeowners.
• Notice of Trustee's Sale (NTS): After the 90-day NOD period expires, a NTS is recorded and published — at least 20 days before the sale date.
• Right to reinstate until 5 days before sale: California law gives you the right to reinstate the loan up until five business days before the scheduled trustee sale. This right exists throughout the process, not just during the 90-day NOD period.
• Trustee sale: The property is sold at public auction. Once complete, the sale is final — California has no post-sale redemption period for non-judicial foreclosures.

Practical timeline: From first missed payment to completed sale typically runs 5 to 9 months in California — shorter than Florida or Illinois, longer than Georgia. And under AB 2424, submitting a complete loss-mitigation application pauses the process entirely during review.

California Homeowner Bill of Rights — what it actually protects

The HBOR (California Civil Code §§ 2923.5–2924.18) gives California homeowners enforceable rights that most states do not have:

• No dual tracking: Your servicer cannot advance a foreclosure while reviewing your modification application. Under AB 2424 (January 2026), the pause continues through the entire review and all appeal rights — a significant expansion from prior law.
• Single point of contact: The servicer must assign you one person or team who knows your file and can authorize or escalate decisions. Constantly being transferred to new representatives is a HBOR violation.
• Pre-NOD outreach: Required contact to discuss options before the NOD is recorded.
• Right to sue: California homeowners can sue servicers who violate HBOR — and courts can issue injunctions to halt foreclosure sales if violations are found. This creates a real enforcement mechanism absent in most states.
• AB 130 — zombie second mortgages (July 2025): A newer California law (Cal. Civ. Code § 2924.13) protects homeowners from foreclosure on old dormant second mortgages that were thought to be forgiven or settled. If your servicer is threatening foreclosure on an old second lien, this law may apply.

California Mortgage Relief Program (HAF) — closed

The California Mortgage Relief Program — the largest state HAF allocation in the country at approximately $1 billion, administered by CalHFA — distributed over $1 billion to more than 37,000 California households. The program closed in January 2026. It is no longer accepting applications.

CalAssist Mortgage Fund — for disaster-affected homeowners

Launched in June 2025 and expanded in February 2026, the CalAssist Mortgage Fund provides mortgage relief for homeowners whose primary residences were destroyed or rendered uninhabitable by qualifying disasters — including the 2025 Los Angeles area fires. In February 2026, Governor Newsom announced an expansion of the grants to up to $100,000 per household, with a 12-month assistance period.

This program is specifically for disaster-affected homeowners. If your hardship stems from property damage or loss from a declared California disaster, contact CalHFA at calhfa.ca.gov or call (877) 922-5432 to check eligibility.

Free housing counselors — CalHFA network

CalHFA maintains a statewide network of HUD-approved housing counseling agencies, accessible through the Keep Your Home California infrastructure. Counselors provide free foreclosure prevention guidance, help with modification applications, and HBOR rights education. Find a counselor at calhfa.ca.gov or through the national HUD locator at hud.gov/housingcounseling.

Local programs across California

Legal aid for California homeowners

• Bay Area Legal Aid: Free legal services for low-income Bay Area homeowners facing foreclosure, including HBOR enforcement actions against servicers.
• Inland Counties Legal Services: Free foreclosure defense for homeowners in Riverside, San Bernardino, and Imperial counties.
• Legal Aid Foundation of Los Angeles: Foreclosure prevention and HBOR litigation for low-income LA County homeowners.
• California Courts Self-Help: Free self-help guides on non-judicial foreclosure rights at sucorte.ca.gov.

Using HBOR strategically: the modification application pause

Under California's strengthened AB 2424, submitting a complete loss-mitigation application to your servicer legally stops the foreclosure clock. This is different from most states. Here is how to use it:

1. Gather your documents: 2 months pay stubs, 2 months bank statements, hardship letter, tax returns if self-employed.
2. Submit a complete modification application to your servicer in writing, keeping copies with delivery confirmation.
3. Under AB 2424, the servicer must pause all foreclosure activity — including a pending NTS — until the review is complete and you have exhausted appeal rights.
4. If your servicer continues foreclosure activity while the application is pending, they are in violation of HBOR and you have the right to seek a court injunction.

A HUD-approved counselor or California attorney can help you submit a complete application and document any HBOR violations.