We Sell Houses LA – Short Sale & Foreclosure
In July 2026, California recorded 2,540 foreclosure starts. A licensed LA agent details the available options to halt an auction—at no cost to the seller.
When a notice of default is filed, a California homeowner can hire a licensed agent to list the property—which may delay a scheduled foreclosure auction for up to 45 days under AB 2424.”— Nick Hedberg, Short Sale AgentLOS ANGELES, CALIFORNIA, UNITED STATES, CA, UNITED STATES, September 1, 2026 /EINPresswire.com/ — This summer, California homeowners initiated more foreclosure cases than nearly any other state, yet most still have more alternatives than they realize. According to ATTOM's July 2026 U.S. Foreclosure Market Report, lenders commenced the foreclosure process on 2,540 California properties during July alone—the third-highest tally nationwide—while foreclosure filings across the country climbed 10 percent compared to a year earlier. In California, virtually every one of those cases started identically: a Notice of Default was recorded against the home.
A Notice of Default represents the first formal step in California’s nonjudicial foreclosure process, but it does not set a sale date. State law mandates a waiting period of roughly three months before a sale can be scheduled, and homeowners retain meaningful rights for nearly the entire timeline. This is general information, not legal advice, but the pattern licensed agents observe weekly remains consistent: homeowners who act within that window preserve their equity, their credit, or both, whereas those who delay until the auction lose all choice.
Key points:
– California had 2,540 foreclosure starts in July 2026, ranking third in the U.S., based on ATTOM's monthly Foreclosure Market Report.
– A Notice of Default triggers a roughly three-month window before a sale can be scheduled; during that period the homeowner can sell, reinstate, or pursue a short sale.
– If a home is worth less than the mortgage balance, a short sale with a licensed agent costs the seller nothing because the lender covers the commission.
What a Notice of Default Actually Means
The Notice of Default is a recorded document that starts a clock, not a judgment. During the initial period the homeowner can reinstate the loan by catching up missed payments and fees, negotiate a repayment plan or loan modification with the mortgage company, or list the home for sale. Reinstatement rights generally continue until shortly before a scheduled sale. Nothing about the notice forces a family to vacate, and nothing prevents a sale.
Selling After a Notice of Default
A homeowner with equity can list and sell the property like any other seller, pay off the loan through escrow, and keep the remaining proceeds. The compressed timeline is the only real difference, which is why pricing and preparation matter more than in a standard sale. Homeowners looking for what to do after a notice of default in California are often surprised that a conventional sale remains the simplest exit when equity exists.
When the Home Is Worth Less Than the Loan: the Short Sale
When the mortgage balance exceeds the home’s value, a short sale allows the owner to sell, settle the mortgage debt with the lender’s approval, and move forward without a foreclosure on their record. The approval guidelines depend on the loan’s backing—such as Fannie Mae, Freddie Mac, FHA, or VA—and a licensed agent experienced in those programs manages the process. In a short sale, the lender pays the agent’s commission, so the help costs the seller nothing out of pocket.
California’s AB 2424 Can Postpone an Auction
Under California’s AB 2424, a homeowner who lists the property with a licensed real estate agent and delivers the listing agreement to the foreclosure trustee at least five business days before a scheduled sale can have that sale postponed by 45 days. If a purchase agreement is subsequently delivered, the law provides for an additional postponement. The statute rewards homeowners who engage a licensed agent early rather than waiting until auction week.
Where Los Angeles Homeowners Can Start
We Sell Houses LA – Short Sale & Foreclosure, the Los Angeles short sale and foreclosure practice of agent Nick Hedberg at Beverly & Company, offers free, confidential consultations for homeowners at any stage—from a first missed payment to a scheduled auction. A step-by-step guide to the process is published at https://wesellhousesla.com/notice-of-default-california-what-to-do/ and covers the 90-day timeline week by week.
About We Sell Houses LA
We Sell Houses LA – Short Sale & Foreclosure helps Los Angeles County homeowners stop foreclosure through short sales, standard sales, and lender negotiations. Long known simply as We Sell Houses LA, the practice now operates under its registered fictitious business name, We Sell Houses LA – Short Sale & Foreclosure, reflecting its exclusive focus on distressed-property sales. Nick Hedberg is a licensed California real estate agent (DRE #02016456) with Beverly & Company (DRE #02078273) and holds the SFR (Short Sales and Foreclosure Resource) certification. The practice serves Los Angeles, Inglewood, Hawthorne, Gardena, Compton, South Gate, Downey, Long Beach, Culver City, Venice, and Marina del Rey. Office: 3041 9th Ave, Los Angeles, CA 90018. Phone: (424) 239-5209.
Nick Hedberg
We Sell Houses LA – Short Sale & Foreclosure
+1 424-239-5209
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