Can you sell a home after a Notice of Default in California? Yes, you can, and many homeowners successfully do so every year. A Notice of Default (NOD) means the foreclosure process has started, but you still own the property. Acting quickly can help you sell your home, reduce financial damage, and avoid a foreclosure on your record.

This guide explains how selling after a Notice of Default works, what challenges to expect, and which strategies can help you move forward with confidence.

Understanding a Notice of Default in California

A Notice of Default is typically filed after you miss mortgage payments for about 90 days. It officially begins the California foreclosure process, but it does not mean immediate loss of your home.

According to the California Courts foreclosure overview, homeowners still have legal rights and time to resolve the default or sell the property before the foreclosure sale takes place.

What a Notice of Default Means

• The lender has started foreclosure proceedings
• You remain the legal owner
• There is usually a minimum 90-day window before further action

Understanding this timeline gives you an opportunity to take control of the situation.

Can You Sell a Home After a Notice of Default in California?

Yes, you can sell a home after a Notice of Default in California as long as the property has not gone to auction. Many homeowners choose to sell during this stage to stop foreclosure and protect their credit.

Selling before foreclosure may allow you to:

• Pay off the mortgage balance
• Avoid a completed foreclosure
• Minimize long-term credit damage

If foreclosure is already on your mind, this step-by-step guide on how to stop foreclosure in California explains additional legal and financial options you may still have.

How a Notice of Default Affects Your Ability to Sell

A Notice of Default can make selling more challenging, but not impossible.

Common Effects on a Home Sale

• Some buyers may hesitate due to foreclosure risk
• Offers may be lower due to urgency
• Buyers’ lenders may require extra documentation

Being upfront and working with experienced professionals can help overcome these concerns.

Options for Selling Your Home Before Foreclosure

Homeowners in default still have several viable paths.

Traditional Sale

If your home has enough equity, a traditional sale can pay off the loan and stop the foreclosure process.

Short Sale

A short sale in California allows the home to be sold for less than what is owed, with lender approval. While not ideal, it often causes less credit damage than foreclosure.

Must-read alert: While you're here, you might want to check out “5 Options to Avoid Foreclosure in the Bay Area”. It’s gaining serious traction and offers practical insights that homeowners find helpful.

Selling to a Cash Buyer

Selling to a local buyer can speed up the process, especially if time is limited. For homeowners in specific areas, working with buyers who understand local markets, such as those who buy houses in Green Valley, CA, can reduce delays and uncertainty.

Legal Disclosures and Credit Considerations

California law requires sellers to disclose material facts, including the Notice of Default.

Required Disclosures Include

• The existence of the Notice of Default
• Known property issues
• Any legal or financial conditions affecting the sale

Foreclosure and default can also impact your credit score. If you want a simple explanation, this video clearly explains how foreclosure affects your credit score.

Why Working With the Right Real Estate Professionals Matters

Selling a home in default is not the same as a standard sale. An experienced real estate agent can:

• Navigate foreclosure timelines
• Communicate with lenders
• Price the home realistically
• Handle negotiations and paperwork

Professional guidance can make the difference between selling in time and losing the property to foreclosure.

Preparing Your Home to Attract Buyers

Even under financial stress, presentation matters.

Simple Ways to Improve Appeal

• Declutter and clean
• Fix minor but visible issues
• Improve curb appeal
• Stage rooms to show space and function

These steps can increase buyer confidence and help your home stand out.

Common Mistakes to Avoid

Avoid these missteps when selling after a Notice of Default:

• Waiting too long to act
• Overpricing the home
• Failing to disclose required information
• Trying to sell without professional help

Each of these can delay your sale or reduce your chances of success.

Helpful Resources for Homeowners in Default

If you need assistance, consider:

• HUD-approved housing counselors
• Legal aid organizations
• State foreclosure prevention programs
• Real estate professionals experienced in distressed sales

These resources can help you make informed decisions during a stressful time.

Conclusion

So, can you sell a home after a Notice of Default in California? Yes, and for many homeowners, it’s the smartest move. Selling before foreclosure can protect your credit, reduce financial loss, and give you a fresh start. By acting early, understanding your options, and using trusted resources, you can take control of the situation and move forward with clarity.

If you’re facing a Notice of Default, remember: time matters, but options still exist.