Can You Sell a House in Foreclosure (& How to do it Fast!)

If you’re facing foreclosure or are concerned that foreclosure may be coming, you are not without options, and we’re here to help you determine the best path forward if you’re wondering ‘how can I sell my house in Foreclosure?’.

You naturally have questions, and we have answers. For instance, can you actually sell a home in foreclosure? The truth is that there are situations in which selling your home in foreclosure is a possibility, and we’re here to fill you in on when it’s advised, how it works, what’s in it for you, and how you can sell the home. 

Can you sell a house in foreclosure in California?

Yes, you can sell a house in foreclosure. But you should not wait until you receive a foreclosure notice before addressing it. In California, the foreclosure process can begin after a single missed payment, and once it’s underway, homeowners may have as little as 120 days to act. It should be addressed the moment you know you’re going to start getting behind on mortgage payments.

The best path forward generally involves selling the house quickly, and working with a real estate investor can help you postpone the foreclosure and bypass common pitfalls and expenses – while maximizing your return.  

Can you sell a house in pre-foreclosure?

Yes, you can sell a house in pre-foreclosure, but you’ll need to act quickly and choose to sell fast. The prospect of foreclosure is stressful, and the sales process is complex. Taking early action as a way to stop foreclosure – before foreclosure proceedings begin – can lead to significant financial advantages for you. 

Selling a home in pre-foreclosure or in actual foreclosure generally involves using the sale proceeds to cover what you owe the lender, including any outstanding payments and attendant penalties once the home is sold. The benefits include erasing the debt hanging over you while protecting your credit.

It’s important to note that selling a house before you face foreclosure generally leaves you with much better options than selling a home that is already in foreclosure, but both are possibilities.

Selling in pre-foreclosure may protect your credit more effectively and offers more flexibility in finding the right buyer, potentially maximizing the sale price and minimizing stress.

Can you help me sell my house fast before foreclosure?

At SoCal Home Buyers, we buy houses for cash in California, and as a result, we can help you sell your home quickly – even if it’s in foreclosure. Once foreclosure begins, things tend to speed up, and we’ve helped homeowners in situations like yours successfully sell their home at every point in the foreclosure process.

Our business is buying foreclosed homes, and we have a simplified purchase process that can wrap up the sale of your home quickly, while avoiding all the following obstacles:

• Hiring a realtor
• Preparing the house for sale, including attending to needed repairs and maintenance
• Having open houses and showings 

We not only speed up the sales process but also do away with common presale expenses that you would otherwise experience if you want to sell.

How can I sell my house to avoid foreclosure?

There are are several different options when it comes to selling foreclosed homes, let’s take a look at them below. 

Work with a realtor 

The traditional method of selling a house is working with a real estate agent. This involves preparing the property for sale, listing your home, and scheduling showings with potential buyers before the property sells, which involves a hefty commission for your realtor.

While this is the more traditional route, it is costly, and it may be too lengthy to do you any favors if you are facing foreclosure. Unlike realtors, real estate investors typically charge no fees, buy properties as-is, and can close in as few as 7 days, which can be especially helpful in preventing foreclosure.

Sell your home yourself

Another option is finding a buyer and selling your home yourself. The fact is, however, that house selling is a complicated process, which can lead to unexpected hurdles that are difficult to successfully maneuver without professional experience backing you up. Attempting to sell your house yourself can leave you more vulnerable to foreclosure. 

Sell your home to a real estate investor

At SoCal Home Buyers, we have a thorough understanding of the foreclosure process, and we also appreciate your financial predicament. We are real estate investors who have the resources to buy your house before it goes into foreclosure and is sold at auction – allowing you to reimburse your lender for all missed payments and penalties, salvage your credit score, and move on with your life. 

Selling your home before the foreclosure process begins generally involves fewer financial obstacles. If you’re ready to sell your property, we’ll make a fair cash offer that allows you to sell quickly, which comes with significant financial and emotional benefits for you. We encourage you to reach out and discuss scheduling an inspection, which can lead to a speedy sale before your house goes into foreclosure.

Delaying selling a house before foreclosure

Wondering how to stop foreclosure in California? If you are behind on your mortgage payments and are concerned that your house could go up for auction, delaying the foreclosure prior to selling it may be an option, but the time to act is now. If you’re serious about avoiding foreclosure in California, you can still sell your house, and it’s often the best approach. 

If you’re invested in saving your home, there may be other actions you can take, but these generally hinge on your ability to make payments moving forward, which may not be a possibility, and how inclined your lender is to strike a deal with you. Consider the following possibilities:

• Catching up on missed payments by paying the lender the amount included on the reinstatement quote
• Paying the amount you can against the months of missed payments and working out a payment plan that satisfies your lender – if they are willing to strike a deal
• Exploring other options to avoid losing your home with your lender, including the possibility of a forbearance, a loan modification, the waiver of late fees, or a short sale.  

If you’re facing a foreclosure or fear that you may be soon, relief may be available. 

What’s a Short Sale?

A short sale can be an option in those situations in which selling the property would bring in less than the amount that the owner owes on it. If you’re in this situation and your lender chooses to allow a short sale, it requires you to sell the house and hand over the proceeds to the mortgage holder.

The bank comes up short, which is where the name short sell comes from, and your credit will be seriously tarnished in the process. While a short sale can help you avoid foreclosure, it often impacts your credit and may take months to complete, which could be risky if foreclosure is imminent.

Some banks are partial to short sales over the foreclosure process in California for all the following reasons:

• It’s generally less expensive than foreclosure. 
• It can be more difficult to sell a home in a foreclosure auction than it is in a short sale.
• Banks prefer to be paid some of what they’re owed – rather than nothing at all, which can happen with a foreclosure.
• Foreclosures can bring down the market value of other homes in the area, which is bad for business overall. 

If you want to know how to short sale your home in California you need to know that in order to qualify to sell a property in a short sale, you’ll need to demonstrate that circumstances like the following apply:

• You are experiencing financial distress, such as losing your job, facing mounting medical bills, inheriting a home you can’t afford to maintain, or having unreliable tenants in a rental.  
• The market value of your home is lower than it was when you purchased it.
• You’ve received a notice of default on your home or are likely to receive one soon, which is a clear sign that you’re experiencing financial distress. 
• You don’t have any significant assets.

The more difficult your financial situation, the more likely your lender is to offer a short sale.

Can I sell my house during the redemption period?

Yes, you can sell your house during the redemption period, which is part of the judicial foreclosure process. The redemption period refers to a time frame in which you are given the opportunity to redeem yourself financially. The requirements associated with the redemption process, however, are quite strict.

The redemption period allows homeowners a chance to ‘redeem’ their property by paying off the entire mortgage balance plus fees within a specific timeframe. However, this can be financially challenging, making a quick sale an attractive alternative.

Need help selling a house in foreclosure fast?

If your home is in foreclosure or is headed in that direction, it may be time to sell. Selling a foreclosed home in California is doable, and SoCal Home Buyers welcomes the opportunity to help.

We’re California real estate investors who pay cash for houses like yours – regardless of what kind of shape they’re in and regardless of whether or not they are in foreclosure. If you’re thinking of selling your house in foreclosure, we encourage you to think of us. 

We have simplified the sales process to the point that it requires only four easy-to-follow steps, including: