How to Handle a Sheriff’s Sale or Trustee’s Sale in California: Legal Tools to Delay or Prevent It
Facing a sheriff’s sale or trustee’s sale in California can feel like the final blow in a long and stressful financial battle. Whether the result of mortgage foreclosure or vehicle repossession, these public sales often mark the last stage before you lose your home or personal property. But even at this point, all may not be lost. Legal tools—especially bankruptcy—can provide powerful relief, sometimes stopping the sale in its tracks.
The Los Angeles bankruptcy attorneys at Wadhwani & Shanfeld have guided thousands of Californians through this difficult terrain. If you’re feeling the pressure of a looming sale, understanding your rights and legal options could make all the difference between losing everything and regaining control over your financial future.
What Is a Sheriff’s Sale or Trustee’s Sale?
Both sheriff’s sales and trustee’s sales are forms of public auctions. They occur after a lender or creditor has taken legal action to recover money owed and obtained a court order or exercised a right under a deed of trust. The difference between the two depends largely on the type of debt involved.
A trustee’s sale is the more common of the two in California. When you fall behind on your mortgage payments and the lender initiates a nonjudicial foreclosure, the foreclosure process does not go through the court system. Instead, the lender uses the power of sale clause included in most California deeds of trust to authorize a trustee—usually a third-party company—to sell your home at public auction. This process is relatively quick, sometimes concluding in as little as 120 days from the initial notice of default.
A sheriff’s sale, on the other hand, usually results from a judicial foreclosure or a lawsuit over secured personal property—such as a financed car or business equipment. After obtaining a court judgment, the creditor may request the sheriff to sell the property to satisfy the debt.
In both cases, the consequences are severe. A successful sale means losing your property, damaging your credit, and potentially owing more money if the proceeds don’t fully cover the debt.
The Foreclosure Timeline in California
California law requires lenders to follow strict procedures before selling your home at a trustee’s sale. This includes sending a Notice of Default, followed by a Notice of Trustee’s Sale at least 20 days before the scheduled auction. These notices are required by law and serve as official warnings that the lender intends to sell your home.
With sheriff’s sales, the timeline depends on how quickly the creditor moves through the court system, but you will receive notice of the lawsuit, the judgment, and the proposed sale.
Importantly, these timelines give you opportunities to act. You may feel like the clock is ticking, but it’s during this window that legal tools become critically useful.
Legal Tools to Delay or Prevent the Sale
There are several potential options to delay or prevent a public auction of your property—but they vary depending on your financial circumstances and how far along the process is.
Loan modification or reinstatement: Before a trustee’s sale, you can often stop the process by paying the past-due amounts or negotiating a loan modification with your lender. Lenders are sometimes willing to work with borrowers, especially if there’s a good-faith effort to cure the default.
Litigation for wrongful foreclosure: If the lender didn’t follow proper procedures, or if there are legitimate disputes over the debt or the terms of the loan, you may be able to file a lawsuit challenging the sale. However, this can be an uphill battle and often requires strong evidence of misconduct.
Filing for bankruptcy: This is one of the most effective and immediate tools to stop a sheriff’s or trustee’s sale.
How Bankruptcy Can Stop a Public Sale
The moment you file for bankruptcy, the court issues an automatic stay, a legal injunction that halts most collection activities—including foreclosure and repossession sales. This stay goes into effect immediately, even if the sale is scheduled for the next day. In many cases, simply filing for bankruptcy can give you the breathing room you need to reorganize your finances or eliminate certain debts entirely.
Chapter 7 bankruptcy, while not a permanent solution to foreclosure, can delay the sale for several weeks or months and eliminate unsecured debts. This might give you time to negotiate a better outcome or prepare for a move.
Chapter 13 bankruptcy allows you to create a repayment plan over three to five years. This option is particularly powerful if you’re trying to keep your home, as it can stop the sale and allow you to catch up on missed mortgage payments over time.
For example, someone behind $20,000 on their mortgage could file for Chapter 13, propose a payment plan that spreads that amount out over several years, and potentially prevent foreclosure as long as the plan is followed and current payments continue.
Bankruptcy is not a magic wand, but it can level the playing field. It forces creditors to follow strict rules and gives you access to the federal bankruptcy court—a forum designed to help honest debtors find relief and move forward.
Don’t Wait Until It’s Too Late
The closer you get to a sheriff’s or trustee’s sale date, the fewer options you have. Timing is critical. Once the sale happens, you can’t get your property back. Even bankruptcy may be unable to reverse a completed sale.
At Wadhwani & Shanfeld, we understand how overwhelming these situations can be. Many of our clients come to us feeling like they’ve run out of options, only to learn that bankruptcy or other legal strategies can offer real, practical relief. Every situation is unique, and we take the time to evaluate your specific needs and goals.
Contact Wadhwani & Shanfeld
If you’re facing a sheriff’s sale or trustee’s sale in California, don’t try to navigate it alone. You may have more options than you think. Our experienced attorneys at Wadhwani & Shanfeld are here to help you explore your legal rights and determine whether bankruptcy or another intervention can stop the sale and give you the fresh start you deserve. Contact us today for a free consultation and take the first step toward regaining control over your financial future.
Sources:
dcba.lacounty.gov/portfolio/foreclosure
usrealtytraining.com/blogs/how-foreclosures-work-california
