Can You Sell a House in Pre-Foreclosure? A California Homeowner's Guide
If you've received a Notice of Default (NOD) from your lender, you're in pre-foreclosure - but you still have time to sell and avoid permanent credit damage. In California, the pre-foreclosure period typically lasts 90 days, giving homeowners a critical window to take control of the situation.
Understanding California's Pre-Foreclosure Process
What Pre-Foreclosure Means
- Lender has filed a Notice of Default (NOD)
- You have 90 days to resolve the debt before auction
- Property is still in your name and can be sold
Key Timeline
- Day 1-30:Â Opportunity to reinstate loan (pay past due + fees)
- Day 31-90:Â Best time to sell - auction hasn't been scheduled
- After Day 90:Â Notice of Trustee Sale filed (auction date set)
Your 3 Best Options During Pre-Foreclosure
1. Reinstate the Loan
- Pay all missed payments + fees (10,000−25,000 typically)
- Requires immediate cash availability
- Stops foreclosure but doesn't solve long-term affordability
2. Short Sale (Lender-Approved Sale)
- Sell for less than owed with bank permission
- Takes 3-6 months (often too slow to beat foreclosure)
- Still damages credit (though less than foreclosure)
3. Fast Cash Sale to Investor
- Sell in as little as 7-14 days
- No bank approval needed
- Stops foreclosure immediately
- Avoids credit score devastation
Why Selling Becomes Harder After Pre-Foreclosure
| Factor | Pre-Foreclosure | Post-Foreclosure |
|---|---|---|
| Control | You choose buyer | Bank owns property |
| Timeline | 90+ days to act | Immediate eviction risk |
| Credit Impact | Can avoid foreclosure | 7-year credit damage |
| Sale Price | Market-based | Bank seeks quick sale |
How to Sell During Pre-Foreclosure
Step 1: Verify Your Timeline
- Check your NOD for key dates
- Contact lender for reinstatement amount
Step 2: Explore Sale Options
- Get a professional valuation
- Compare cash offers vs. traditional sale potential
Step 3: Choose the Right Buyer
- Cash buyers can close before auction
- Traditional buyers may not meet timeline
Step 4: Close and Stop Foreclosure
- Sale pays off mortgage debt
- Lender withdraws NOD
- Foreclosure process ends
Find What It's Like Working with Semi Homes
The Cash Sale Advantage in Pre-Foreclosure
Selling to a company like Semi Homes helps because we:
✅ Make same-day offers - no waiting for bank approvals
✅ Close in 7-14 days - fast enough to beat auction dates
✅ Buy as-is - no repairs or cleaning needed
✅ Handle all paperwork - including lender notifications
Frequently Asked Questions
How much time do I have after the Notice of Default?
California gives homeowners 90 days before the Notice of Trustee Sale (auction notice) is filed.
Will I owe money if I sell for less than I owe?
In California, lenders typically can't pursue deficiency judgments for most primary residences after a short sale.
Can I stop foreclosure after the auction date is set?
Yes, up until the auction occurs. We've closed sales days before scheduled auctions.
How does a pre-foreclosure sale affect my credit?
- Short sale: 100-150 point drop
- Foreclosure: 200-300 point drop
- Timely sale: Minimal impact if mortgage is paid
What if I have multiple liens on the property?
Cash buyers can negotiate with all lien holders and often clear secondary debts in the sale.
Need to Sell Before Foreclosure?
At Semi Homes, we specialize in helping California homeowners:
- Stop foreclosure before it's too late
- Get fair cash offers within 24 hours
- Close on time to protect your credit
- Sell without repairs or showings