Updated December 2025 | 7 min read

Can I Sell My House During Foreclosure in California?

Yes, absolutely. You can sell your house at any point during the foreclosure process in California - even up to days before the scheduled auction. In fact, selling your home is often the best way to protect your equity, avoid a foreclosure on your credit report, and take control of a difficult situation.

Your Three Options for Selling During Foreclosure

Option 1: Traditional Sale (If You Have Equity)

If your home is worth more than what you owe, you can sell it just like any normal home sale. The proceeds pay off your mortgage, and you keep the difference.

Best for: Homeowners with equity who have 60+ days before auction

Timeline: 30-60 days (traditional buyers often need time for financing)

Option 2: Short Sale (If You're Underwater)

If you owe more than your home is worth, you may qualify for a short sale. The bank agrees to accept less than the full amount owed.

Best for: Homeowners who owe more than the home's value

Timeline: 90-120 days (requires bank approval)

Option 3: Cash Sale to Investor (Fastest Option)

Cash buyers can close in as little as 7-14 days, making this ideal for homeowners running out of time before auction.

Best for: Homeowners with less than 30 days before auction

Timeline: 7-14 days

Comparison: Your Selling Options

The California Foreclosure Timeline: How Much Time Do You Have?

Understanding where you are in the foreclosure process helps determine your best selling strategy:

Pre-Foreclosure (Missed Payments)

You're behind on payments but haven't received a Notice of Default yet. This is the ideal time to sell - you have the most options and time.

After Notice of Default (NOD)

You have at least 90 days before a Notice of Sale can be filed. You can still pursue a traditional sale or short sale.

After Notice of Sale (NOS)

The auction is scheduled at least 21 days out. Time is limited, but a cash sale is still very possible.

Days Before Auction

Even with just days to spare, a cash sale can close and stop the auction. We've helped homeowners close 5 days before their scheduled sale date.

Steps to Sell Your House During Foreclosure

1. Know your payoff amount: Contact your lender for the exact amount needed to pay off your loan
2. Determine your home's value: Get a realistic estimate of what your home can sell for
3. Calculate your equity: Home value minus payoff amount = your equity
4. Choose your selling method: Based on your timeline and equity situation
5. Work with professionals: Real estate agents, cash buyers, or both
6. Close and pay off the mortgage: The sale proceeds go to your lender first

What If I Owe More Than My Home Is Worth?

If you're "underwater" (owe more than the home's value), you still have options:

Short Sale

Your lender agrees to accept less than owed. This requires lender approval and can take 90-120 days.

Deed in Lieu of Foreclosure

You voluntarily transfer ownership to the lender. This avoids the auction but still impacts your credit.

Cash Offer + Negotiation

Some cash buyers work with lenders to negotiate reduced payoffs, especially if the alternative is foreclosure.

Benefits of Selling vs. Letting Foreclosure Happen

Selling Your Home:

• Keep your equity (if any)
• Avoid foreclosure on your credit report
• Control the timeline and process
• Walk away with dignity and potentially cash
• Shorter waiting period to buy again (2 years vs. 7 years)

Letting Foreclosure Happen:

• Lose all equity in the property
• Foreclosure stays on credit for 7 years
• Potential deficiency judgment (money you still owe)
• Longer wait to buy another home
• Possible eviction and moving costs

Frequently Asked Questions

Can I sell if I've already received a Notice of Sale?

Yes! You can sell up until the moment the auction gavel falls. Cash buyers can often close in 7-14 days.

Will the bank try to stop me from selling?

No. Banks generally prefer you to sell because it often results in a better outcome for everyone.

What if I can't sell for enough to pay off my mortgage?

You may qualify for a short sale, or you can negotiate with the bank about accepting less.

Do I need a real estate agent?

Not necessarily. Cash buyers typically purchase directly from homeowners without agents.

Take Action Today

The sooner you explore your options, the more choices you'll have. Every day that passes reduces your flexibility and negotiating power.

Whether you want to try a traditional sale, explore a short sale, or get a fast cash offer, we can help you understand your options and make the best decision for your situation.