- Who sends it
- The trustee who ran the sale, by first-class mail to the addresses used for the foreclosure notices
- What it starts
- A 30-day window for your written claim to reach the trustee
- Do this first
- Note the date the notice was sent and mail a signed claim right away, with proof of delivery
What this notice is in California
Civil Code section 2924j says that unless an interpleader case has been filed, the trustee must send this notice within 30 days after signing the trustee's deed, whenever money is left after paying the sale costs and the loan that was foreclosed. It goes to everyone with a recorded interest in the home just before the sale who was entitled to the foreclosure notices.
The notice must say there was a trustee's sale, that you may have a claim to part or all of the leftover money, and where to contact the trustee. It must also say that claims must be received by the trustee at the address in the notice no later than 30 days after the date the trustee sends the notice.
What it does and does not mean
- It does not mean you will get all of the money. The trustee pays in this order: sale costs and fees, the foreclosed loan, junior liens such as a second mortgage in order of priority, and then you (Civil Code section 2924k).
- The trustee may charge a fee for handling the payout. A fee of $100, or $125 when junior liens are paid, is presumed reasonable.
- It does not mean you need to hire anyone. No one may contact you about claiming your surplus until 90 days after the trustee's deed is recorded (Civil Code section 2924.21), and a foreclosure consultant may not arrange the release of your surplus at all (Civil Code section 2945.4).
The deadline and how to count it
- Your claim must be received, not just mailed, by the trustee within 30 days after the date the trustee sent the notice. Look for that date on the notice and count calendar days.
- The claim must be in writing and signed under penalty of perjury. It states the amount of your claim as of the sale date and an itemized statement, and the trustee may ask for proof of your interest.
- If no one disputes the claims, the trustee pays within 30 days after the claim period ends.
- If the trustee cannot sort out who is owed what within 90 days after the claim period, it must deposit the money with the superior court clerk within 10 more days. Before it does, it must mail a notice saying that claims must be filed with the court within 30 days from the date of that notice (Civil Code section 2924j(b) to (d)).
What to do this week
- Write a claim to the trustee at the address in the notice. Include your name, the property address, the trustee's file number, your current mailing address, and a statement signed under penalty of perjury.
- Send it by a method that shows the delivery date, and keep a copy.
- Give the trustee your new address in writing if you have moved. The California Courts tell former owners to do this so the trustee can reach them.
- If you get a notice that the money is going to court, file your claim in that court case within the 30 days it states. Free legal aid or Housing and Economic Rights Advocates (HERA) can help.
- Read how to claim surplus funds in California and after a foreclosure sale in California.
The rest of the California process
See how foreclosure works in California, the timeline, ways to stop it and free help in California, or read the national guide to this letter.
Common questions
How long do I have to claim California surplus funds from the trustee?
Your written claim must be received by the trustee no later than 30 days after the date the trustee sent the notice (Civil Code section 2924j). Send it as soon as the notice arrives.
Someone called me about my California surplus funds. Is that allowed?
Not until 90 days after the trustee's deed is recorded (Civil Code section 2924.21). A foreclosure consultant may never arrange the release of your surplus funds (Civil Code section 2945.4). You can claim it yourself.
My second mortgage lender also filed a claim. What happens?
Junior liens are paid before the former owner (Civil Code section 2924k). If the trustee cannot decide priority or the claims conflict, it can deposit the money with the superior court, and you file your claim there within 30 days of the trustee's notice.
Other California letters
- Notice of DefaultIn California, a recorded Notice of Default is the formal start of a trustee (out of court) foreclosure. It is not a sale and not an eviction. At least 3 months must pass before a Notice of Sale can set an auction, and you can catch up until 5 business days before the sale date.
- Letter about foreclosure prevention alternativesAfter a Notice of Default is recorded, a larger California servicer that offers ways to avoid foreclosure must write to you within 5 business days. The letter says you may be evaluated, whether you must apply, and how to get the application. It is your cue to apply now.
- Notice of SaleA California Notice of Sale sets the date, time and place of the trustee's sale (auction) of your home. It must be mailed, posted on your door, recorded and published at least 20 days before the sale. You may still have options, and most end 5 business days before the sale.
- 3-day notice to quit after a foreclosure saleAfter a trustee's sale, the new owner cannot change the locks. It must first serve a former owner with a written 3-day notice to quit. If you stay past it, the owner must file an eviction (unlawful detainer) case in court, and only the sheriff can remove you after a judgment.
- Summons, Unlawful Detainer, Eviction (form SUM-130)If you stayed after the 3-day notice, the new owner can sue to evict you in an unlawful detainer case. You usually have 10 court days after you are served to file a written response. If you do nothing, the owner can win by default and the sheriff can lock you out after a 5-day notice.