What Is AB 2424?
California Assembly Bill 2424, signed into law in 2024 and effective January 1, 2025, is the most significant piece of foreclosure reform legislation in the state since the Homeowner Bill of Rights. It directly addresses the inequity that occurs when distressed properties are sold at trustee sales far below their actual market value.
For Central Valley homeowners — where foreclosure filings have surged 32% year-over-year — AB 2424 provides two critical protections: a structured postponement system totaling up to 90 days, and a minimum bidding floor of 67% of fair market value at trustee sales.
At Legacy Real Estate, we've already helped homeowners across Fresno, Visalia, and Tulare County activate these protections to preserve tens of thousands of dollars in equity that would otherwise have been lost.
The Two 45-Day Postponement Triggers
Day 1
Notice of Default Filed
The lender records a Notice of Default (NOD) with the county recorder. The homeowner has been 90+ days behind on mortgage payments. The foreclosure clock begins.
Day 1 – 45
Trigger 1: Listing Agreement
The homeowner enters a listing agreement with a licensed real estate agent. This triggers the first 45-day postponement of the trustee sale, giving the agent time to market the property at fair market value.
Day 46 – 90
Trigger 2: Purchase Agreement
Once a bona fide purchase offer is received and a purchase agreement is executed, a second 45-day postponement is activated. This provides time for escrow, inspections, and closing — up to 90 total days of protection.
At Sale
67% FMV Bidding Floor
If the property still goes to trustee sale, AB 2424 establishes a minimum bid of 67% of appraised fair market value. This prevents predatory lowball bids and preserves homeowner equity that would otherwise be lost.
The 67% Fair Market Value Floor
Before AB 2424, properties at trustee sales could be purchased for the outstanding loan balance — often far below actual market value. A home worth $435,000 in Fresno could be acquired for as little as $180,000 if that was the remaining mortgage balance. The homeowner would lose over $250,000 in equity overnight.
AB 2424 changes this by requiring a minimum opening bid of 67% of the property's appraised fair market value. Using the same Fresno example, the minimum bid would now be approximately $291,450 — preserving over $110,000 in equity for the homeowner compared to the old system.
Before AB 2424
$180,000
Bid at remaining loan balance
With AB 2424
$291,450
67% of $435k Fair Market Value
Impact on Central Valley Markets
The Central Valley has been one of California's hardest-hit regions for foreclosures in 2025–2026. With 545 Notice of Default filings in Q2 2025 alone — a 32% increase year-over-year — AB 2424 protections are not theoretical. They are being activated daily.
Fresno County leads with the highest volume of filings, driven by pandemic-era forbearance expirations and adjustable-rate mortgage resets. Tulare County has seen the fastest growth rate, with filings up 41% in smaller cities like Visalia, Dinuba, and Orosi. For investors, this creates acquisition opportunities — but only when working with agents who understand the AB 2424 timeline and bidding requirements.
545
Q2 NOD Filings
+32%
YoY Increase
90
Days Protection
What This Means for Investors
AB 2424 does not eliminate investor opportunities — it restructures them. The 67% FMV floor means trustee sale acquisitions still offer 33% below-market pricing. Combined with rising foreclosure volume, the deal flow is increasing, not decreasing.
The key for Visalia and Fresno investors is timing. The two 45-day postponement windows create a predictable timeline that sophisticated investors can plan around. Working with an agent who tracks NOD filings and understands the AB 2424 calendar is essential.
Take Action Today
Facing Foreclosure? You Have Options.
Whether you're a homeowner seeking AB 2424 protection or an investor looking to navigate the Central Valley foreclosure market, Alejandra Gonzalez and Legacy Real Estate are here to guide you through every step.
DRE #02207755 • Legacy Real Estate Inc • DRE #02165291