Nonjudicial foreclosures caught the attention of the legislature in California. Laws and regulations were established to control and stop unscrupulous people from taking advantage of borrowers facing nonjudicial foreclosure. Because of high-pressure tactics used by some less-than-honorable real-estate investors to get the wearied homeowners to sign sales agreements, California law now requires the right to rescind the sales agreement. The homeowner can easily cancel the sales contract within five days.

Other states are enacting similar legislation, allowing any sales contract offered during the pre-foreclosure process to be canceled for a specified period.