AB 2424 Is Here: How It’s Reshaping California’s Real Estate Market for the Better
AB 2424 is shaking up the foreclosure process—and it’s great news for real estate professionals. This new law prioritizes transparency, fair pricing, and proactive selling, creating a healthier market for buyers, sellers, agents, and investors. Here’s what you need to know:
- More Opportunities for Agents & Homeowners - Homeowners can now delay a foreclosure sale if they list their property with a real estate agent. This means more homes will sell traditionally instead of going straight to auction, keeping more equity in homeowners' hands while increasing listings for agents.
- Fairer Pricing at Foreclosure Auctions - Gone are the days of properties selling at deep discounts. AB 2424 introduces a 67% minimum bid requirement based on fair market value, ensuring homeowners get better deals and investors compete more fairly.
- More Transparency, More Confidence - New disclosure rules mean homeowners will be better informed about their options before foreclosure happens. This creates smoother, less rushed transactions for agents and lenders while giving sellers more time to make informed decisions.
- Better Market Stability for Buyers & Investors - With fewer homes lost to rapid foreclosure, more properties will be available for sale at reasonable prices. This opens doors for first-time homebuyers and creates sustainable investment opportunities.
The Bottom Line?
AB 2424 makes California’s real estate market more predictable, more equitable, and more lucrative for real estate professionals who stay ahead of the game. Agents, lenders, and investors—now is the time to adapt to these changes and position yourself for success this 2025! 
Work with our team of ADU investment experts to increase your property value, earn rental income, or expand your family's living space.
