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Dealing with foreclosure notices in San Diego can feel frustrating and overwhelming. Owning real estate in California is expensive, and not getting any cheaper. Home values are near all-time highs, causing mortgage payments to be high too. Additionally, increased mortgage interest rates on variable terms can force your monthly mortgage payments to dramatically surge. Selling a home during the foreclosure process is one way to completely avoid the situation and burden. For anyone dealing with difficult financial times, this ultimate guide provides information on the foreclosure process in CA, including timelines and options that you have.
If you have wondered how can I sell my house in foreclosure in San Diego, our team is here to help.
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Can I Sell My Home If It Is Already in Foreclosure?
The short answer is a resounding yes! You can sell a home if it is already in foreclosure in San Diego, California. However, there are financial components that you need to review before attempting this. Selling a property during foreclosure can cause homeowners to come out of pocket. To know exactly what the foreclosure process has in store for you, make these calculations regarding your home:
- How much will someone pay you for your house: For this example, let’s say that the bank can pay Bob the homeowner $500,000.
- What is your total mortgage balance: Bob has a mortgage balance of $510,000.
- Do you owe any late fees on your mortgage: Bob owes $1,000 in mortgage late fees.
From here, do the math and see where you end up.
- $500,000 – $510,000 – $1,000 = -$11,000
Going in this direction, Bob can avoid foreclosure and needs to come out of pocket $11,000. Selling your property during foreclosure in San Diego to the bank isn’t ideal. Although you avoid getting foreclosed on, which can hurt your credit and make it extremely difficult to buy a home in the future, it still leaves you in the red financially. Is there a way to sell a house in foreclosure and get a better offer?
1. Sell Your House in Foreclosure to a Cash Buyer
You can sell a house in foreclosure directly to a cash buyer, like SD House Guys, and receive a higher offer than what the bank will give you. We are a local home buying company based in San Diego that buys foreclosed properties. Our team understands the hardships that homeowners endure throughout life. Owning a property is extremely expensive with high interest and mortgage rates.
Jon and Alex, the co-founders of SD House Guys, are here to help you get out of a bad situation. We will pay you cash for your foreclosed property and assist you in getting out from underneath this situation. Our team pays more than what your bank will offer you. We can also help you avoid the foreclosure process. You can sell your house during foreclosure in San Diego to a local and trusted real estate company. Our goal is to make every foreclosure situation a win-win.
Contact us today to receive an offer for your property. By working with SD House Guys, you avoid paying expensive realtor commissions and save money on closing costs. Every dollar counts when trying to sell a house in foreclosure in San Diego. Additionally, we buy houses in as-is condition that are going through foreclosure. Regardless of the damages or code violations, you can sell your house to us. Continue reading our California foreclosure guide to learn about your options and timelines.
2. Short Sale
When trying to avoid foreclosure in California, you can conduct a short sale. This is an agreement between you and your mortgage lender for them to buy your property before getting foreclosed on. Typically, the result is similar to the example above with Bob. Banks can’t afford to pay you more than what you owe on the property because they would likely lose money.
When selling your foreclosed home through a short sale, the bank will offer you less than your mortgage amount. Homeowners usually need to pay out of pocket to successfully complete a short sale with their bank. This is why doing the foreclosure amount calculation above is important. If you don’t have enough money to cover the leftover negative balance, the short sale cannot happen. Homeowners still avoid foreclosure – which is good – but are left with empty wallets. Instead, contact SD House Guys to receive a strong offer. Sell your house in foreclosure with confidence by working with a credible homebuyer in San Diego.
3. Negotiate with Your Bank
Depending on your financial situation, banks will sometimes negotiate with homeowners dealing with foreclosure in California. The lender will review the entire scenario and see what makes the most sense. They consider things like location, financial hardship, and value of the property. It can be worth contacting your bank to see what they will entertain.
You Can Sell a House During Foreclosure in San Diego
No matter how far behind you are on payments, you can sell a house during foreclosure in San Diego CA. However, time is of the essence. There is a particular timeline that the state of California allows in which you can try to find a homebuyer. To receive an immediate offer for your home, contact us today. If you have thought that I need to sell my house during foreclosure in San Diego, our company is here to help. Now, let’s dive into the foreclosure process in CA and the timeline homeowners must abide by.
How Long Do You Have to Sell a House in Foreclosure
In San Diego, and the state of California, you can sell your house up until the finalized foreclosure date. However, it’s important to note that there is a limited timeline that you have to make this happen. Trying to list your home with a realtor on the market can take weeks to prepare the home and then months to find the right buyer. Listing your home on the market is not guaranteed that you’ll successfully find a buyer and avoid foreclosure. The process takes a long time and is expensive after paying realtor commissions.
You can avoid foreclosure in California by working with SD House Guys. Review our guide on how to sell a house without a realtor and save yourself thousands of dollars. We will let you know exactly how much time you have and work with you to meet deadlines. If you have thought that I need to sell my house in foreclosure in San Diego, our company can help.
Foreclosure Process in California
First things first…
The lender that provided you with your mortgage will contact you and anyone else tied to the loan. This is your first notice. From there, a 30-day period begins where the mortgage borrower will have a chance to become current on their bill. Once day 31 is reached without a mortgage payment being made, the bank can begin the foreclosure process. Again, this is also if you haven’t come to an agreement with the lender or sold your house in foreclosure in the meantime.
Notice of Default
The bank will send a Notice of Default to the borrower after the initial 30-day period is over. From here, the homeowner has 90 days from the date that the notice was recorded to pay off the owed (defaulted) amount.
Fraud and Scam Alerts
It’s sad but true. Different foreclosure frauds and scams are prevalent in today’s world. Here’s what to look out for:
- Scammers will search public county records and find active mortgage defaults since these are publicly available documents. The scammer will then send you a letter or email offering to help you avoid foreclosure, keep your home, and pay off your debts. These fraudulent attempts to steal money are surprising but they do happen. Beware of any scam or fraud attempts you see regarding California foreclosure relief.
Notice of Sale
Once the 90-day Notice of Default period is up, the bank can issue a Notice of Sale regarding your property. From here, another 21-day period begins. If the defaulted payments are not reconciled during this timeframe, the lender can sell your property at the Sheriff Sale Auction in San Diego County. Typically, the lender will bid on your home at the auction if no one else does.
How to Stop Foreclosure after the Notice of Sale
There is a 5-day window before the sale to remedy the defaulted mortgage and stop the foreclosure process. This is also known as a reinstatement of the mortgage. Throughout the 21-day timeframe after the Notice of Sale is recorded, a person that has interest in your property has a right to redeem it up until the auction takes place. However, to redeem the property at this point in the process, the loan must be paid off entirely.
Notice to Vacate
Depending on if your home is sold at the sheriff sale auction, you will receive a Notice to Vacate the property. This 3-day period is a written Notice to Vacate (quit or move out) provided by the new owner. When properties do not sell during the sheriff sale auction, the lender takes over ownership.
After the dust settles and your foreclosed property has been sold, you are mandated to pay the difference between both the total amount of the leftover mortgage and the sale price of the house. A deficiency judgment is what makes this doable.
How Long Does Foreclosure REALLY Take in California?
- Late Notice: 30 Days
- Notice of Default: 90 Days
- Notice of Sale: 21 Days
- Notice to Vacate: 3 Days
- Total Length of Time for a Foreclosure in California: 144 Days
Ways to Avoid Foreclosure in San Diego
The easiest way to avoid foreclosure in San Diego is to sell your home. As discussed previously, listing your property on the market would take too much time. Instead, you can sell a house during foreclosure in San Diego to a homebuyer like us. However, if unsure about selling your home, here are several other ways that people use to get around foreclosure.
Declare Bankruptcy to Avoid Foreclosure
Does bankruptcy stop a foreclosure? While declaring bankruptcy doesn’t technically stop a foreclosure, it does temporarily freeze it. Doing this lets any collection agencies or creditors involved know to halt their pursuit of the defaulted debt. This can allot you a few weeks (or months) of time. This is not at all financial advice. Declaring bankruptcy can harshly hurt your credit, among other things.
Chapter 7 Bankruptcy doesn’t help you keep your house. This direction still requires you to go through the California foreclosure process. However, your bank will not go after you for a judgment. Chapter 13 bankruptcy can help you keep your house. This direction will not remove your debts owed, but it does allow you to restructure the debt. The purpose of Chapter 13 bankruptcy is to make a debt repayment plan that you can handle. The timeframe could be spread out over several years’ time.
Deed in Lieu
This strategy for getting around a foreclosure is complicated and requires arrangements between you and the lender that both sides must agree to. You can use a deed-in-lieu to avoid the foreclosure process by voluntarily turning over the rights of your house to the bank. A deed-in-lieu isn’t used as often as the other strategies.
What Does the Bank Do With Your Foreclosed House?
There are two options for foreclosures that a bank will decide to pursue:
- Judicial Foreclosure
- Nonjudicial Foreclosure
A nonjudicial foreclosure does not involve a court. It’s the most common type of foreclosure in CA because lenders are usually able to recover their losses. The bank takes rights to your house and resells it to recoup its cash. The power of sale clause allows lenders to do this. This way is cheap, faster, and easier for everyone compared to a judicial foreclosure. There are no debt collection agencies or expensive court costs.
My Rental Property is Being Foreclosed
Are you unsure what will happen to your renters (tenants) in a property that you own which is getting foreclosed? You’re not alone. Usually, leases are fully closed out once a property is foreclosed. Click here to learn how to sell a house with tenants in San Diego before foreclosure. In the state of California, you owe the tenant at least 60 days’ notice about the foreclosure and end of their lease. Even when you own a property that is being foreclosed but you don’t live there yourself, the occupants still need ample time to relocate.
Foreclosure Negatively Affects Your Credit Score
Having your home foreclosed in California will negatively affect your credit score. This will make it difficult to get approved for loans and buy houses in the future. Do your best to avoid getting foreclosed on.
The easiest way to get around foreclosure is to sell your house. SD House Guys will make you a cash offer for your home that is getting foreclosed. Even if you are behind on payments, SD House Guys will buy your property, which will help you pay off your debts. If you have thought that I need to sell my house during foreclosure in San Diego, contact us today to get started.
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