Hello, my name is Nick Hedberg with We Sell Houses LA. One question that we get a lot is: can you sell your house before a foreclosure date in Los Angeles? The answer is absolutely yes.
If the bank has not set an auction date, or if the auction date has not passed, you can definitely still sell your house. We had one client, Antonio Gonzalez. He gave us a call a while ago - it was the night before the foreclosure auction.
We were able to stop the auction and work a short sale through the bank. Short sales unfortunately do take a while. We were able to actually stop multiple auctions for him, help put the whole thing behind them, and get it processed.
So if you do have a foreclosure date, or if the bank has filed for a foreclosure on your property, please give us a call as soon as possible so we can talk to you about it, see if there's any equity in the property, and get that foreclosure auction stopped so you can sell your house. Thank you very much.
Received a Notice of Default? Trustee sale on the calendar? In California you can still sell — often until days before the auction. We stop the clock, negotiate with your lender, and get you out with your equity protected.
A listing agreement you deliver to the trustee at least five business days before the sale can legally postpone your auction at least 45 days under California’s AB 2424 — and if a short sale is needed, our commission is paid from the sale proceeds at closing.
Prefer to talk? Call or text (424) 239-5209 — free, confidential, no judgment.
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DRE #02016456 · Beverly & Company · SFR® Short Sales & Foreclosure Resource · ★★★★★ Zillow Rating · $60M+ in Closed Sales
The Short Version
Updated July 28, 2026 · Reviewed by Nick Hedberg, licensed California real estate agent, DRE #02016456
A Notice of Trustee Sale does not mean the house is already gone. California gives you real, enforceable rights at every stage — the right to reinstate, the right to sell, and since 2025, the right to postpone the auction itself by getting a listing agreement to the trustee in time.
I’m Nick Hedberg, founder of We Sell Houses LA. We work with lenders and servicers from PennyMac to Fannie Mae, including FHA and VA loans. The sooner you call, the more options we can protect — but late is still not too late.
Which Way Out Is Right for You?
Every foreclosure sale in Los Angeles comes down to two questions: would a sale net more than you owe, and how close is the auction? There are three ways to sell — and all three beat losing the house at a trustee sale.
If you have equity
The sale would net more than you owe after commission and closing costs. We list it on the open market, buyers compete, and at closing the sale pays off the mortgage, the missed payments, and the foreclosure fees — the remaining equity comes back to you.
Listing also unlocks AB 2424: a listing agreement that reaches the trustee by certified mail or tracked courier at least five business days before the sale postpones the auction at least 45 days, and a signed purchase agreement priced at or above the unpaid balance of every obligation of record can earn one more postponement.
Best when: you have equity and at least a few weeks of runway.
If you're underwater
You owe more than the home is worth. Your lender agrees to accept the sale proceeds as full payoff. Under California CCP §580e, once your lender approves in writing and the sale closes, it generally cannot pursue the difference on a 1–4 unit residence — and nothing is owed to us up front: our commission is paid from the sale proceeds at closing.
While a short sale is under active lender review, a servicer can also postpone a scheduled trustee sale at its own discretion.
Best when: the loan balance exceeds the home's value.
If the auction is days away
When the trustee sale is too close for a full market listing, a direct cash buyer can close in roughly 7 to 14 days — fast enough to pay off the loan and stop the foreclosure before the gavel falls.
You trade some price for speed and certainty, so we only recommend it when the calendar forces it — and we tell you honestly when it does.
Best when: the sale date is inside 2–3 weeks and can't be moved.
We pull your exact timeline — Notice of Default date, sale date, loan payoff — and map every option you still have. Ten minutes, no judgment.
A listing agreement you deliver to the trustee at least five business days before the sale triggers AB 2424’s postponement of at least 45 days. We use that time to negotiate with your lender.
Have equity? You keep what’s left after payoff. Underwater? We negotiate a short sale, and our commission is paid from the sale proceeds at closing. Either way — no auction on your record.
Up front. Our commission is paid from the sale proceeds at closing.
California AB 2424: a listing agreement you deliver to the trustee at least five business days before the sale postpones your foreclosure auction at least 45 days.
Under California law you can reinstate your loan until five business days before the auction — and we’ve gotten sales done with even less runway.
Mid-divorce and newly out of work, Nicole and John had run out of money to finish the projects around the house — and the foreclosure auction was almost here when they reached us. We got the auction stopped and completed their short sale with PennyMac. They walked away with a lender-paid relocation fee and no foreclosure on their credit.
Antonio called us the night before his home was set to go to auction. He had lost his job twice and couldn’t catch up on payments — and his wife and two kids were living in the house. We got the foreclosure postponed, worked with Fannie Mae, and got his short sale approved. No foreclosure on his record, and his family moved forward on their own terms.
Yes. Until the trustee sale actually happens, you still own the home and have the legal right to sell it. A foreclosure filing — even a recorded Notice of Trustee Sale — does not transfer ownership. The practical questions are timing and payoff: the sale needs to close (or qualify for a postponement) before the auction date, and the loan, fees, and any liens are paid from the proceeds at closing. We have closed sales for homeowners who called with less than a week on the clock, so even a late start is worth a phone call.
California foreclosures are usually nonjudicial and follow a set timeline: the lender records a Notice of Default (NOD), waits a minimum of three months, then records a Notice of Trustee Sale (NTS) at least 20 days before the auction. That is roughly 111 days minimum from NOD to sale, and postponements can push the date later. Every stage leaves you room to act, and the earlier you start, the more leverage you have.
AB 2424 is a California law, effective January 1, 2025, that gives homeowners a powerful tool: deliver a listing agreement with a licensed broker, for a listing on a publicly available marketing platform, to the foreclosure trustee by certified mail or tracked overnight courier at least five business days before the scheduled sale, and the auction must be postponed at least 45 days. After that, a signed purchase agreement that escrow has accepted, delivered the same way at least five business days before the new date, earns one more postponement, to at least 45 days after the trustee receives it, if its price equals or exceeds the unpaid balance of every obligation of record — a test of the price before sale costs, which a short sale contract can still pass. Each postponement works once.
Nothing good. At a trustee sale the home typically goes to investors bidding at a discount; the lender takes what it is owed plus fees and costs, junior liens take their cut, and any surplus owed to you can take months to claim. Selling before the auction on the open market almost always nets you more: the home is marketed properly, buyers compete, and your equity comes back to you at closing like any normal sale.
Then a short sale is usually the answer. We negotiate with your lender to accept the sale proceeds as full payoff. Under California Code of Civil Procedure §580e, once your lender approves in writing a short sale of a one-to-four-unit residence and the sale closes, it generally cannot pursue you for the remaining balance on that loan. Nothing is owed to us up front: our commission is written into the settlement your lender approves and paid from the sale proceeds at closing. See our Los Angeles short sale guide for the full process.
Good news — both have formal programs designed for exactly this situation. FHA loans use HUD’s Pre-Foreclosure Sale program, which pauses the foreclosure while the home is marketed and can include seller relocation assistance. VA loans have the VA Compromise Sale, where the VA covers the approved shortfall for an eligible sale. We handle both — see our FHA short sale guide and VA compromise sale guide, or call and we will confirm which program your loan qualifies for.
Same day. One of the families on this page called us the night before their auction — we got the sale postponed and later closed a fully approved short sale. The first call takes about ten minutes: we verify the sale date with the trustee, check your reinstatement and postponement options, and start the paperwork immediately. The only thing that makes a foreclosure unfixable is waiting until after the auction.
Yes — you own the home until it sells, and you are entitled to live in it through the listing and escrow. Moving costs can come from any equity you have left or, where a program offers it, lender-paid relocation assistance. We plan the move-out timing with you.
Free, confidential options review — no obligation, no judgment.
Or call/text (424) 239-5209
