Can you sell a house that is in pre-foreclosure in California?

We have formulated a guide to help those that are Can You Sell A House That Is In Foreclosure In California recently and are looking at solutions. If your question is not listed or answered in this guide about selling a house in pre-foreclosure, please feel free to call us at +1(866) 497-8248 or fill in the contact us form below, and we will try to answer any and all questions you may have.

Let's Dive In

A Guide To:

Sell A House That Is In Foreclosure In California

We’ve got you covered; here is a breakdown of some of our clients, most important questions, and responses to Can You Sell A House That Is In Foreclosure In California .

Hi there, I am Marc, the owner of Sell Quick California. I will be the one answering all your home-selling questions. Our most important questions, we have them listed here below.

For a more thorough consultation of your situation, feel free to fill out the form. Don’t worry; it is all free without any cost involved and without obligation to accept any offer we make to you. If you rather talk to a live person, feel free to call us at my directly at +1(866) 497-8248.

Can You Sell A House In Foreclosure In California?

Facing foreclosure in California can be stressful, but selling your home before the foreclosure process is complete may be an option to avoid losing the property to the bank. If you’re struggling with mortgage payments and at risk of foreclosure, understanding your rights, the foreclosure timeline, and potential challenges is essential. Here’s what you need to know about selling a home in foreclosure in California.

01

Step 1: Understand Your Pre-Foreclosure Status

Step 1A: Confirm You’re in Pre-Foreclosure

This begins when you’ve missed mortgage payments and the lender files a Notice of Default (NOD).

You typically have 90 days to resolve the default before a Notice of Sale is issued.

Step 1B: Know the Foreclosure Timeline

After the NOD, you have time to either:

Catch up on payments

Negotiate with the lender

Or sell the property before the auction date

Cash Buyer Benefit: Cash buyers can close within days, helping you beat foreclosure deadlines without lender delays.

02

Step 2: Review Your Options

✅ Option 1: Sell to a Cash Buyer (Fastest & Simplest)
Close in 7–14 days

Avoid foreclosure record on your credit

Sell as-is, no repairs or fees

Ideal if you owe less than market value or are willing to accept a fair cash offer

🏠 Option 2: List the Home on the MLS
Requires repairs, showings, and time

Risky if time is short before auction

Can work if the home is in good shape and you have more than 60 days

📉 Option 3: Short Sale
Sell for less than you owe, with lender approval

Slower process (can take 60–90+ days)

Better than foreclosure but still hurts credit

⚖️ Option 4: Bankruptcy or Loan Modification
May delay foreclosure, but not a sale

Should be reviewed with a bankruptcy attorney or HUD counselor

03

Step 3: Request a Payoff or Reinstatement Amount

Contact your lender to request:

Payoff Statement: Total owed to settle the loan

Reinstatement Amount: Amount needed to bring loan current

Share this with potential buyers so they understand what’s needed to close.

Cash Buyer Tip: Many can work with your lender directly to expedite payoff and prevent foreclosure

04

Step 4: Disclose Pre-Foreclosure Status to Buyers

Let buyers know:

The timeline (auction or sale date)

Any liens, missed payments, or pending legal action

That the home is being sold as-is under pressure

Cash Buyer Advantage: They specialize in distressed sales and are comfortable buying under time-sensitive conditions.

05

Step 5: Prepare the Home (Optional)

No Need for Repairs with cash buyers.

If you’re listing traditionally:

Declutter and clean

Consider light cosmetic repairs (only if time and money permit)

06

Step 6: Market the Property or Request Offers

If working with a cash buyer:

You can skip marketing—reach out to a buyer like Sell Quick California

Most will make an offer within 24–48 hours

If listing on the MLS or FSBO:

Price aggressively

Highlight urgency and “as-is” condition

Be transparent about pre-foreclosure status

07

Step 7: Accept an Offer and Open Escrow Quickly

Cash Buyer:

Offers are typically non-contingent

Close in 7–10 days

Cash is wired directly to escrow to stop the foreclosure sale

MLS or Short Sale:

May require lender approval

Risk of delays that could lead to foreclosure

08

Step 8: Close the Sale Before the Auction Date

The foreclosure auction (trustee’s sale) happens as soon as 21 days after the Notice of Sale is filed.

Ensure escrow closes before that date to avoid losing the home.

Cash Buyer Pro Tip: They can coordinate a same-week close if needed—even up to the day before auction.

Frequently Asked Questions & Answers

Yes, you can sell your house in foreclosure. It doesn’t matter that you must catch up on your mortgage payments and that the lender has initiated the foreclosure process. Foreclosure doesn’t put an automatic deadline for selling your property. If you can complete the process of selling your house before your foreclosure sale, you can go right ahead.

If your home is being foreclosed on, there may be a way for you to stop it. You can authorize an advisor or a lawyer to speak with your lender on your behalf. Their professional knowledge will allow them to get the best results for you.

You can always stop foreclosure until your home is sold at an auction. However, your lender will take action after 90 days of your last payment. When those 90 days pass, your lender will first issue a delinquency notice.

In California, lenders can complete nonjudicial foreclosure, or they can complete a judicial foreclosure process. The nonjudicial process is done outside the court, whereas the judicial process is done through the court systems.

You absolutely can sell your house in foreclosure when you are in bankruptcy. To do this, list your home for sale in the traditional sense, and when you have an agreement of sale in hand, you can file a motion in court to allow the sale of the property.

The pre-foreclosure process can last more than 200 days in California. Your missed mortgage payment days begin from the first missed payment. That would be day 1. Then at around day 90, your loan is considered officially in default. After 180 days, you can expect a notice of trustee sale. Finally, 20 days after your notification of trustee sale, your bank can set your house up for auction.

Yes, you most definitely can. You will receive a NOD 90 days after your first missed payment. Once you pass the 90 days, you are now officially in Pre-Foreclosure. During this time and up until your foreclosure sales date, you have the opportunity to list your house on the market for sale.

Foreclosure can take months or even years. The length of your foreclosure timeline can vary, but certain milestones are consistent throughout the process.

The first missed mortgage payment.
Ninety days after your first missed mortgage payment, your mortgage defaults.
You receive a notice of default – at the beginning of pre-foreclosure.
Initiation Of Foreclosure – petition to begin foreclosure, and a trustee is appointed to oversee the home auctioning.
Notice Of Trustee Sale – Trustee has to legally notify the owner and the public about the sale.
Auction – the highest bidder takes ownership of the property.
If the minimum bid was not met at auction, the property becomes REO – Real Estate Owned. At this point, the house is owned by the lender and is often sold below market prices.
Eviction Notice – When the property is sold at auction or gets REO designation, you will be given a specified date and time to leave.

In California, it often takes several months for a lender to foreclose on your property. The process typically takes around four months if everything goes according to schedule. However, the process has yet to take longer than 200 days, depending on the circumstances involved.

The trustee will sell your home at auction in 21 days. In order to ensure that you are aware of the pending sale, the trustee is required to send you a certified mail notice and publish it in a newspaper of general circulation in the county where your home is located for three consecutive weeks before the sale date.

In California, foreclosure can be a judicial process, or it can be a nonjudicial process. The judicial process can take longer since the lender must file a lawsuit to get the power to sell your home. However, this can buy you some time if you want to keep your home and anticipate you will be able to get current with your payments. This option is used when your mortgage does not have a power-of-sale clause.

Nonjudicial foreclosure is the most common type of process that is complete in California. Nonjudicial foreclosure is used when there is a power-of-sale clause. Nonjudicial foreclosure allows homeowners to sell the home to pay off the loan balance if the borrower is in default.

After a foreclosure is complete, the new owner has to serve you with a three-day written notice for you to move out of the home. If you do not move out within three days, they can go through the courts to do a formal eviction. That process can take several weeks, if not months.

Each late payment and each missed payment will have a negative impact on your credit score. But when it comes to your home being in foreclosure, you can expect this to stay on your record for seven years. And this is with all three nationwide credit bureaus. However, the good news is that the negative impact of a foreclosure on your credit score will lessen over time.

You almost always have the option to sell your home if it is in foreclosure. Can you sell a house in pre-foreclosure? The answer is yes. Can you sell a house in foreclosure when in bankruptcy? The answer is yes. Can you sell a foreclosure home? Yes, you most definitely can. Knowing where you are in the process makes a big difference. Still, in most cases, if you can have an agreement of sale before your home is put up for auction, you can sell it, repay the lender and move on.