We Buy Short Sale Homes in Los Angeles County, As Is and for Cash

A short sale is when your mortgage lender agrees to let you sell your Los Angeles home for less than the loan balance and accepts that amount as full payoff. Your lender orders a valuation, reviews a hardship package, and approves or counters a buyer's offer. Once approved in writing, the sale closes like a normal escrow, through a title company, with the lender's payoff handled at closing.

In many cases, no. Under California Code of Civil Procedure section 580e, once your lender approves a short sale in writing on a one-to-four unit residential property, that lender generally cannot pursue you for the difference between what you owed and what the sale paid. Junior lienholders who also agree in writing are typically covered too. Your specific approval letter controls the exact terms, so we review it with you line by line.

Most Los Angeles County short sales run somewhere between sixty and one hundred twenty days from an accepted offer to final lender sign-off, though the exact timeline depends on your servicer, how many liens are involved, and how complete your paperwork is going in. Files with a single lender and clean documentation tend to move faster than files with a second mortgage or judgment lien attached.

An active short sale in progress may lead your servicer to postpone a scheduled trustee sale while your file is under review, since most servicers do not want to foreclose on a home that is already under contract. That said, a postponement is never guaranteed and is entirely up to your servicer's own internal rules. If a sale date is close, the sooner you start the process, the more room there is to work with.

A second mortgage, HELOC, or a judgment lien recorded against your property does not vanish just because your first mortgage lender approves the short sale. Each lienholder has to separately agree to release its lien, typically for a negotiated partial payoff, before title can transfer clean. Getting those releases agreed is part of what we take on as the buyer, and it is a common reason a cash-only buyer walks away from a file like this.

Nothing, ever. California law bars anyone who helps a homeowner avoid foreclosure, including real estate agents, from collecting a fee before that work is fully done, and we would not charge one even if it were allowed. We get paid out of the transaction when your sale closes, exactly like a standard real estate commission, so we only get paid if your file actually gets approved and sold.

It depends on your equity and your goals. A short sale usually nets you more toward paying down what you owe and can resolve the debt with no deficiency in many cases, but it takes longer and requires lender approval. A cash sale closes faster with no lender involved at all. Because Nick can run either path, we will look at your numbers with you and tell you honestly which one fits your situation.

This page is general information about California law, not legal advice, and it is not a substitute for advice from a licensed California attorney about your specific situation.

A short sale happens when your lender agrees to let you sell your Los Angeles home for less than what you owe on the mortgage, and accepts that lower amount as payoff in full. It typically fits when you are underwater, meaning the house is worth less than the loan balance, when you have fallen behind on payments, or when a hardship like job loss, divorce, illness, or a death in the family means you can no longer keep up. A short sale is not a sign of failure. It is a structured way to exit a mortgage you cannot sustain without a foreclosure on your record. Because you are selling the home through escrow rather than losing it at auction, a short sale is typically reported differently to the credit bureaus than a foreclosure, and it generally comes with a shorter wait before you can qualify for another mortgage, though every lender and every credit file is different. Either way, it puts you back in control of the timeline instead of leaving it to the courthouse steps.

Homeowners often ask what happens to the rest of the debt after a short sale closes. Under California Code of Civil Procedure section 580e, once your first mortgage lender agrees in writing to a short sale on a one-to-four unit residential property, that lender is barred from coming after you for the difference between what you owed and what the sale actually paid, known as a deficiency. This protection generally extends to junior lienholders, like a second mortgage or HELOC, once they also agree in writing to the short sale. There are exceptions: section 580e does not protect you if the lender can show fraud connected to the short sale itself, such as concealing a competing offer or a side deal with the buyer, or if you commit waste by intentionally damaging the property. So the exact terms of your lender's approval letter matter, and we review that language with you before you sign. In many cases, an approved short sale resolves the mortgage debt entirely with no deficiency owed.

Sellers pay us nothing. California law bars anyone who helps a homeowner avoid foreclosure, including real estate agents and foreclosure consultants, from collecting a fee before that help is fully delivered, and we would not charge one even if it were allowed. We only get paid out of the transaction when your sale closes, the same way any real estate commission works, so our interest is the same as yours: getting your file approved and closed. A short sale in Los Angeles County typically takes somewhere in the range of sixty to one hundred twenty days from an accepted offer to a lender's final approval, though every servicer and every file moves at its own pace. If a foreclosure sale date has already been set, an active short sale in progress may lead your servicer to postpone it while the file is under review, though a postponement is never guaranteed and depends on your servicer's own rules.

Sell My Los Angeles House Fast - No pressure, No Real Estate Agents - As Is Cash Offer

sell my house fast Los Angeles - cash offer - quick and quickly

Want to sell your house fast for cash in the greater Los Angeles and California to a trustworthy property buyer?

We at As-Is Home Buyers would love to buy your property! We don't require any repairs and cover all closing costs, escrow and title fees, real estate agent commissions (if required) and close on your timeframe.

What are the fees and costs involved in selling to a fast cash home buyer?

We at As-Is Home Buyers would love to buy your property! We don't require any repairs and cover all closing costs, escrow and title fees, real estate agent commissions (if required) and close on your timeframe.

A short sale can feel like a maze. Your lender holds the pen, and the clock keeps running. A cash buyer can take some of that weight off your shoulders.

What changes when we buy the house

We buy the house ourselves, as it stands. You don't fix anything, and you don't pay us a fee. We make you a cash offer. Your lender then decides if that price is enough to approve the sale.

What stays the same

The lender still has the final say. Nobody can promise approval, and we won't. We give you a clean cash offer to send to your lender. Then we stay ready to close.

If your home needs work

Maybe the roof leaks or the kitchen is worn out. You don't owe us a repair list. Your lender may still check the home's value, so we talk through the condition with you early.

A short sale needs a buyer who can close once the lender says yes. A cash buyer has no loan to wait on. That matters when a foreclosure date sits on the calendar.

Proof of funds is part of the rules

For owner-occupied homes, California's rule on approved short sales speaks of proof of funds or financing. A cash buyer can show funds. That means one less approval and one less place for the deal to stall.

One buyer who knows the steps

A short sale has more parties than a normal sale. There can be a first lender, a second lender, an HOA and a title company. We know who needs to sign what. We answer the lender's questions about our offer and our funds.

The steps look like a regular cash sale. One extra step sits in the middle: your lender's written approval.

Step 1: Tell us about the house

Fill out the short form or call us. Tell us about the loan, any second mortgage, and any sale date you know of. You don't need every paper yet.

Step 2: Get your cash offer

We make you a fair, no-obligation cash offer within 24 hours. You can meet in person or talk by phone. No pressure, and no fee.

Step 3: Your lender approves, then we close

Your lender must accept the price in writing. After that, you pick the closing date. It can be as little as 7 days from approval, or later if you need time. A title or escrow company handles the closing, and we coordinate it with them.

A note on the closing clock

Some lenders set a closing deadline after approval. Fannie Mae, for one, expects closing within 60 days of its servicer's approval unless it allows more time.

Every servicer has its own checklist. The big investors share many of the same asks.

The hardship package

Most servicers ask you to document your hardship, income and savings. On a Fannie Mae loan, that is often the Mortgage Assistance Application, Form 710. If papers are missing, its servicer must send you a checklist within five business days of the first offer.

The purchase contract

Fannie Mae requires a clause that makes the sale depend on the mortgage holder's agreement. That clause is normal. It protects you from a sale the lender refuses.

A value check on the home

The servicer orders its own valuation and needs access to the home. You stay responsible for upkeep until the sale closes.

A sworn statement that the sale is fair

Fannie Mae has all parties sign a Short Sale Affidavit at closing. Freddie Mac's version says the sale is arm's length, with no side deals. It also says you get no money from the sale, other than relocation help the servicer offers. Any stay as a tenant must be allowed, short, and 90 days at most. Tell us about any plan to stay in the home, so we can check it against the lender's rules.

If a trustee's sale date is set, time matters most. Know the steps first.

How the foreclosure clock runs in California

The lender records a notice of default. At least three months must pass before the sale. The lender then gives notice of the sale. That notice must be posted and published at least 20 days before the sale date. The sale is an auction held in the county on a weekday, between 9 a.m. and 5 p.m.

Why a sale date can move

California law lets a sale be postponed by court order, by agreement between you and the lender, and in a few other ways. The total can run up to 365 days from the date in the notice. A postponement is never certain. It depends on your servicer.

A one-time 45-day pause

For a home with up to four units, another rule can add 45 days. You send the trustee a listing agreement with a California real estate broker. It must arrive by certified mail or tracked courier at least five business days before the sale. It works once. Ask an attorney if it fits your file.

Approved in writing by everyone

For a first loan on an owner-occupied home of up to four units, another rule bars the sale once all parties approve a short sale in writing and proof of funds is delivered. That can mean your first lender, your second lender and any mortgage insurer. Some small servicers are left out of this rule. One holdout can break it. Talk to a California attorney about how it applies to you.

Your first lender is rarely the only one in line. Each lender holding a recorded lien must agree to release it before title can clear.

What junior lenders must agree to

Fannie Mae and Freddie Mac both ask a second lender for a written promise to release its lien. On those loans, a junior lender that takes a payment from the sale must also release you from the debt. It must give up any claim for a deficiency, too. It may not ask you for extra cash to release you.

The small payment limit

On a Fannie Mae or Freddie Mac loan, the servicer may pay junior mortgage holders up to $6,000 combined from the sale proceeds. The servicer can split that sum between them. FHA and VA loans follow their own short sale rules, and private lenders set their own terms.

Why this stalls deals

A second lender who wants more than the cap can hold up the whole file. We go through the numbers with you early. Nobody can promise a junior lender will accept less.

An HOA can be a creditor too, and its lien works differently from a mortgage.

How an HOA lien starts

Unpaid assessments are a debt of the owner. An HOA must first mail a notice at least 30 days before it records a lien. The lien exists once the HOA records a notice of delinquent assessment. After another 30 days, the HOA can enforce it.

The $1,800 line

Below $1,800 in assessments, an HOA cannot foreclose. That count leaves out late fees, costs and interest. The exception is a debt more than 12 months late.

Getting the payoff number

On a sale, the owner must give the buyer a written statement of what the HOA is owed. You can ask the HOA for it in writing, and it has ten days to send it. It may charge a fee based on its actual cost.

Who pays the HOA in a short sale

Fannie Mae and Freddie Mac let a servicer deduct past-due HOA dues from the sale proceeds. HOA liens do not qualify for the small junior-lender payment, though. Ask your servicer how it treats yours.

A short sale can end in a yes, a counter or a no. Know what each one means.

If the lender counters

A counter means the lender wants a different number or term. Fannie Mae's guide gives its servicer three answers to an offer: approve, counter or decline. Its counter asks for your reply within five business days. We tell you what the new number means for our offer.

If the lender declines

Ask for the reason in writing. A missing paper, a low value or a second lender are common causes. We can sometimes fix the problem and send a new offer. Nobody can promise the lender will change its answer.

If the house sells at a trustee's sale

California generally bars the lender that sells the house at a trustee's sale from collecting a deficiency on that loan. A second lender wiped out by that sale may be treated differently. A guarantor can still owe, too. Talk to a California attorney about the rules for your loans.

Other paths to ask about

• A loan modification or repayment plan from your servicer.
• A deed in lieu of foreclosure, where you hand the lender the deed.
• A cash sale outside the short sale process, if your equity covers the debt.

In a short sale, the lender approves every dollar on the settlement statement. Costs that come out of the sale price must fit its rules.

What we cover

We pay the usual closing costs and charge no agent commission. We handle the title and escrow coordination. Your lender sees the full list of charges before it signs off.

What an investor may allow

Fannie Mae lists the costs it allows from the sale price. They include title and settlement charges, transfer taxes and prorated property taxes. They also include past-due HOA fees. It bars fees that are not usual for the local market.

Help with moving costs

If Fannie Mae owns your loan and the house is your main home, you may get a $7,500 relocation payment at closing. It does not apply in some cases, such as when the servicer requires a cash contribution. Ask your servicer if it applies to you.

You already read that section 580e can bar a lender from chasing the leftover debt. A few conditions sit behind that rule.

What must happen first

The sale must follow the lender's written consent. A deed to the buyer must be recorded in the county. The sale money must reach the lender as the parties agreed. The main rule covers a loan secured only by a home of up to four units.

No extra money for consent

A lender may not ask you for extra pay, beyond the sale proceeds, in return for its consent. A promise to give up this protection is void. If a lender asks you to sign a side note for the gap, stop and call a California attorney.

Who the rule leaves out

The rule does not apply when the borrower is a corporation, an LLC or a limited partnership. If an LLC holds title to your home, ask an attorney before you count on it.

Tax questions

Forgiven debt can have tax effects. Fannie Mae's guide points owners to IRS Publication 544. Please ask a tax professional about your case before closing.

Los Angeles County has public offices that can help you see where you stand. You can use them before you sign with anyone.

Checking what is recorded against your house

The county Registrar-Recorder/County Clerk holds real estate records back to 1850. Any member of the public can request them. The office says it does not offer online access to its real estate records or indexes. You can request copies online, in person, by fax or by mail.

Free foreclosure prevention webinars

The county's Department of Consumer and Business Affairs offers free foreclosure prevention webinars. It also lists resources for property owners.

Ask a California attorney

A short sale touches state law, lender rules and tax law. An attorney can tell you how they fit your home. Please don't skip that legal check.