LA is known for expensive housing. In 2021, the Southern California home prices hit an all-time high with a median figure of $655,000. The median house price in LA County was $750,000. So, when you’re facing foreclosure, you might think to yourself, “should I sell my house in Los Angeles” to pay off the mortgage debt. It will give you quick access to cash.
Most people are unaware of how to sell their homes for cash after a foreclosure. Well, that’s what this article is all about. Learn how to sell your property during foreclosure.
Can You Sell A Foreclosure Home?
You’re allowed to sell your home up until the time that it’s not auctioned and sold by the lender. There are six phases of a foreclosure. After you default on your mortgage debt, the lender will send you a Notice of Default (NOD) within 90 days of missing the payments. In the next 90 days, the house will be auctioned at the Sheriff’s Sale.
In Los Angeles County, Sheriff’s property sales occur at the Stanley Mosk Courthouse, located at 110 N. Grand Avenue and 111 N. Hill Street.
If the property gets auctioned, you can no longer sell the house at your will. So you’ve got 180 days from the day you receive the NOD to sell your home. You can also refinance your property within that period, negotiate a loan modification, or file for bankruptcy.
Before the 180 days time period, you can sell your property in two ways. It doesn’t require you to seek any form of approval from the lender unless there are specific terms.
List Your Property for Sale
Your first option is to sell the property yourself by listing it on various real estate portals. You can also put a “House for Sale” board outside the house and wait for sellers to come in.
Some portals list foreclosure homes exclusively. You can list your house for sale in it and attract potential buyers.
You get to talk directly to the buyers or their agents and negotiate a deal. More often than not, you’d have to settle for a Short Sale. In real estate, it’s a technical term for selling the home below the market value. The buyer of the property then buys the house, and the money goes directly to the lender.
Sell Through a Real Estate Professional
The other way is to sell your to-be-foreclosure property through a real estate agent. And there are several benefits to it.
While you can sell the property on your own, you get to save the agent commission. But as a downside, it often takes longer. In some cases, you may have to wait months before striking a deal.
Furthermore, the agents from the buyer’s side often avoid FSBO deals. That’s because they know the person they’ll be dealing with isn’t a professional colleague. So they may avoid the transaction altogether.
Last but not least, a real estate professional would be able to negotiate a better price on your behalf. So you do not have to short sell only because you’ve defaulted on your mortgage.
So, if you’re thinking, “can I sell my house in Los Angeles?” Yes, you can. Just work with the right local agent in LA to get things done quicker.