Probate Advance is not a lender and does not provide loans. We specialize exclusively in inheritance funding, which is a financial option for heirs awaiting their inheritance. Inheritance funding is not a loan—there are no monthly payments, no interest charges, and no repayment is required unless you receive your inheritance. If for any reason your inheritance is not received, you owe us nothing.
Effective January 1, 2025, California Assembly Bill 2424 (AB 2424) introduced major changes to the state’s non-judicial foreclosure process — reforms that can have meaningful ripple effects for homeowners, borrowers in default, and estates involved in probate proceedings.
While AB 2424 is not itself a probate law, its impact on residential real estate — especially when a decedent’s estate includes a home or other 1-4 unit residential property — makes it important reading for estate administrators, heirs, and probate attorneys alike.
What Is AB 2424? An Overview of the New Foreclosure Protections
AB 2424 is a California statute that reforms the state’s non-judicial foreclosure process for most residential properties with one to four units. The law focuses on giving borrowers time and a fair chance to preserve their equity by requiring foreclosure trustees to postpone scheduled sales under certain circumstances.
Here are the key protections AB 2424 introduces:
- Postponement for Listing the Property (45 Days)
If a borrower (or estate representative) delivers a valid listing agreement with a California-licensed real estate broker to the foreclosure trustee at least 5 business days before a scheduled foreclosure sale, the trustee must postpone the sale at least 45 days.
- Additional Postponement for a Purchase Agreement (45 More Days)
If, during that extended period, a bona fide purchase agreement is obtained and delivered to the trustee at least 5 business days prior to the then-scheduled sale date, the foreclosure must be postponed for an additional 45 days. Combined, these two postponements can add up to 90 days of extra time.
- Minimum Bid Requirement at Auction
If the foreclosure sale proceeds, AB 2424 also limits how low a property can be sold at auction: trustees cannot accept bids below 67 % of fair market value at the initial sale. If no qualifying bids are received, the sale must be postponed at least 7 more days.
How AB 2424 Affects the Probate Process
AB 2424 isn’t a probate statute, but it intersects with estate administration whenever a decedent’s estate includes residential real estate that may be in default or faces an upcoming foreclosure. Here’s how these changes matter in a probate context:
Estates Have More Time to Sell Property
When a decedent leaves behind a home that is in default or entering foreclosure, executors and administrators have historically raced against the clock to sell the property — often with little time to market it at full value. AB 2424’s postponement provisions can buy valuable time in probate to market an estate property and maximize returns for heirs and creditors.
Higher Sale Values Preserve Estate Equity
By giving estates up to 90 extra days to list and sell, and by instituting minimum bid standards at auction, the law helps ensure that real estate sells closer to fair market value — a critical consideration when trying to satisfy estate debts and distribute assets to beneficiaries.
Strategic Timing for Executors
Probate administrators should be aware that AB 2424 must be triggered proactively — you don’t automatically get extra time. Executors (or their real estate agents) must submit the required listing or purchase agreements in the right form and by the right deadline to benefit from the postponement periods.
Practical Probate Tips When Real Property Is in Foreclosure
If you’re administering a probate estate that includes property at risk of foreclosure:
Identify the Foreclosure Timeline Early
Locate the Notice of Trustee’s Sale immediately and count backward to identify the 5-business-day deadlines for triggering postponements under AB 2424.
Engage a California-Licensed Broker
To use AB 2424’s first postponement, you’ll need a valid written listing agreement with a California-licensed broker that commits to publicly list the property.
Gather an Experienced Team
Work with probate attorneys and real estate professionals who understand both AB 2424 and the probate process to maximize the value of estate real property without unnecessary delay.
Frequently Asked Questions (FAQs)
What is California AB 2424?
California Assembly Bill 2424 is a law that modifies the state’s non-judicial foreclosure process for most residential properties with one to four units. It provides mandatory foreclosure postponements and minimum bid requirements designed to protect property equity.
Does AB 2424 apply to probate estates?
While AB 2424 is not a probate law, it can apply to probate estates that include residential real estate facing foreclosure. Executors and administrators may be able to use its postponement provisions to gain more time to sell estate property.
How does AB 2424 help executors or administrators?
AB 2424 can give estate representatives up to 90 additional days to market and sell a property before foreclosure, helping maximize sale value and preserve equity for heirs and creditors.
Is the foreclosure postponement automatic under AB 2424?
No. The postponement must be triggered by submitting a valid real estate listing agreement or purchase agreement to the foreclosure trustee within required deadlines.
Can AB 2424 delay probate itself?
AB 2424 does not change probate court timelines. However, it can indirectly reduce pressure on executors by delaying foreclosure while probate administration and property sales are underway.
How Probate Advance Can Help Heirs and Estate Administrators
If you’re managing an estate under probate in California and part of the estate is tied up in real property, there’s often a cash-flow gap between when you need to close estate liabilities and when the property finally sells.
That’s where a probate advance comes in.
Unlike a loan, a probate or inheritance advance provides heirs with upfront cash based on the expected inheritance — before probate is fully settled. This can help heirs:
- Pay moving costs, or taxes,
- Avoid rushing to accept a lowball offer just to close quickly
- Increase negotiating leverage by giving your team time to market the property properly
A probate advance doesn’t require the estate or its beneficiaries to take on additional debt — it’s afunding based on the inheritance you’re already due. This makes it a powerful tool alongside AB 2424’s extended timeframe to help you preserve equity for heirs and creditors alike.
Need Financial Breathing Room During Probate?
Dealing with probate — especially when real estate and foreclosure timelines are involved — can feel overwhelming. If you’re an heir waiting on an inheritance, it’s normal to need access to funds before the probate process is complete.
Probate Advance is here to help.
We offer inheritance advances that allow qualified heirs to access a portion of their expected inheritance early — without taking on additional debt or monthly payments. Our team works directly with you, your attorney, and the estate when needed, so the process stays as simple and respectful as possible.
If you’d like to understand your options, you can request a free, no-obligation review to see whether an inheritance advance may make sense for your situation.
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