Does California have a right of redemption after foreclosure?

What the Law Says

California law distinguishes sharply between judicial and nonjudicial foreclosure when it comes to the right of redemption. Because most residential foreclosures in California are nonjudicial (using a deed of trust with a power of sale), homeowners typically lose their right to redeem the property after sale.

Under California Code of Civil Procedure § 725a, a person who has lost real property through a judicial foreclosure may redeem it within one year after the sale — unless the property was sold to satisfy a judgment lien held by a junior lienholder, in which case the redemption period is shortened to three months.

However, CCP § 580d explicitly prohibits deficiency judgments — and by extension, redemption rights — after nonjudicial foreclosure. Since over 90% of California residential foreclosures are nonjudicial, most homeowners have no statutory right to redeem.

The 'One-Action Rule' in CCP § 726 further limits lenders’ options: they must choose either judicial foreclosure or a nonjudicial sale, but not both — and choosing nonjudicial foreclosure forfeits any right of redemption.

Statutory Text

The judgment debtor, or his successor in interest, may redeem the property sold within one year after the sale.

— Code of Civil Procedure, § 725a — Right of redemption after judicial sale

Statutory Text

No judgment shall be rendered for any deficiency upon a note secured by a deed of trust… upon its foreclosure by trustee's sale.

— Code of Civil Procedure, § 580d — Deficiency judgments prohibited after nonjudicial sale

Statutory Text

There can be but one form of action for the recovery of any debt or the enforcement of any right secured by mortgage upon real property.

— Code of Civil Procedure, § 726 — One-Action Rule

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