Foreclosure Bailout Loans in Los Angeles

A fast private loan that pays off the past-due loan before the trustee's sale. Up to 70% of value, $500,000 to $5 million, funding in as little as 7 business days.

Once a notice of sale is recorded, the auction can be as little as 20 days away. A typical bank loan takes longer than that to close.

Notice of sale to auctionLegal minimum [3]
20 days
Typical bank loanAverage days to close, March 2026 [1]
38 days
City Capital RealtyAs little as 7 business days
7 days
9%Interest-only rate
70%Of property value, at most
7 daysFunding in as little as 7 business days
$500K–$5MLoan amounts
2%Origination fee
4Guaranteed monthly payments

Current terms. Rates and fees are subject to change without notice. Some restrictions may apply. Subject to credit approval.

What is a foreclosure bailout loan?

A foreclosure bailout loan is a short-term private loan that pays off a past-due mortgage in full before the trustee's sale. Once the defaulted loan is paid, the sale is cancelled and you keep the property and its equity. You then repay the bailout loan by selling the property or refinancing, on your schedule instead of the auction's.

Banks rarely lend to someone already in foreclosure, and they rarely close fast enough. A private lender like City Capital Realty looks mainly at the property's value and equity, so we can decide quickly and fund in as little as 7 business days. That speed is the whole point: under California law the auction can come just 20 days after the notice of sale is recorded. [3]

Who it is for

  • Owners of rental homes and apartment buildings behind on the mortgage
  • Investors with a property in default or facing a sale date
  • Commercial property owners with a matured or defaulted loan
  • Property held in an LLC, corporation or trust
  • Fix-and-flip projects that ran out of time or money
  • Owners who need weeks, not months, to sell for full value

Is it the home you live in?

Most of our loans are business-purpose. If the property is your own home, call us and we will tell you honestly what applies. A free HUD-approved housing counselor is also a good first call: HUD lists them at (800) 569-4287. [9]

How a foreclosure bailout loan works

  1. Call with the sale date

    Tell us the property address, what you owe and the date on your notice of default or notice of sale. Shawn reviews it with you directly.

  2. We look at the property

    We check the value, the title and the equity. The decision is based mainly on the property, not on a perfect credit score.

  3. Clear terms in writing

    You get the loan amount, rate, fees and term in writing, so you can compare before you sign.

  4. Escrow gets the payoff

    Escrow orders the exact payoff or reinstatement figure from the foreclosing lender or trustee.

  5. Funding cancels the sale

    The loan funds, the past-due loan is paid, and the trustee's sale is called off. Then you sell or refinance on your own schedule.

Could a bailout loan stop your sale?

Move the sliders to your numbers. "Total needed" is the past-due loan payoff plus late fees, foreclosure costs and closing costs.

Foreclosure bailout loan calculator

Move the sliders to your numbers. It updates instantly and nothing you enter leaves this page.

$1,400,000
$560,000
Bridge loan
$560,000
Monthly interest (9%)
$4,200
Minimum cost*
$28,000
Equity you keep
$840,000

This fits our terms: the loan is 40% of the home's value.

*Minimum cost = 4 guaranteed monthly payments plus the 2% origination fee. "Total needed" is the past-due loan payoff plus fees and costs. Example only, not a loan offer or commitment to lend. Escrow and title costs not included. Rates and fees are subject to change without notice. Some restrictions may apply. Subject to credit approval.

When a bailout loan makes sense, and when it doesn't

A good fit

  • The property has real equity: what you owe is well under 70% of its value
  • You have a clear way out within months: a sale, a refinance or new income
  • The problem is time, not the property: a bank is too slow, or a deal fell through
  • You want to sell for full market value instead of an auction price

Probably not a fit

  • Little or no equity left in the property
  • No realistic plan to repay within a year
  • The loan payment itself is the problem: a new loan won't fix that
  • A loan modification or repayment plan from your lender would solve it more cheaply

We would rather tell you no than make a loan that doesn't help. If a sale or a talk with your current lender is the better path, we will say so.

Notice of default in California: how much time you have

A California foreclosure follows set steps, and every one of them is a chance to act. [13]

  • Notice of default: the lender records it. At least three months must pass before the next step. [2]
  • Notice of trustee's sale: sets the auction date, at least 20 days ahead. [3]
  • Catch up (reinstate): you can pay the missed amount plus fees until five business days before the sale. [4]
  • Pay off (redeem): paying off the whole loan, for example with a bailout loan or a sale, stops the foreclosure up to the auction. [5]
  • Your own home: on a first loan for an owner-occupied 1–4 unit home, the servicer cannot move ahead with a sale while a complete loan-modification application is pending. [6]

What waiting can cost: a Los Angeles case

In Pacoima, a home estimated at about $900,000 sold at a trustee's sale on November 4, 2025 for $540,754.49, one penny over the debt. The owner lost more than $350,000 of equity in a single morning. A lawsuit followed, and a proposed settlement would undo the sale, which is rare. [12] A sale or a bailout loan before the auction would have protected that equity.

Source: a press release from the consumer groups that represented the owner; the settlement was still "proposed." We do not name the owner.

How to spot a foreclosure rescue scam

Walk away if anyone asks you to:

  • Pay a big fee up front. In California, foreclosure consultants cannot collect fees before they have finished every service they promised. [7]
  • Sign your deed over so they can "save" the property. Selling to an equity buyer comes with special legal protections; read everything and get advice first. [8]
  • Stop talking to your lender or send your payments to them instead.
  • Trust a guarantee. No honest lender guarantees to stop a foreclosure before reviewing the property.

Check every lender's license. Look up City Capital Realty on the California Department of Real Estate site (DRE 00667328) [10] and on NMLS Consumer Access (NMLS 298861 / 729817). [11] A real lender gives you terms in writing and closes through a licensed escrow and title company.

What to have ready

  • Property address and the sale date, if one is set
  • Copies of the notice of default or notice of sale
  • Your latest mortgage statement
  • The payoff or reinstatement figure, if you have it
  • Property insurance information
  • Rent roll and leases, for rental property
  • LLC or trust documents, if the property is held in one
  • Your plan to repay: listing, sale contract or refinance

Areas we serve

We make foreclosure bailout loans across Los Angeles County, Orange County and California, from our office at 1575 Westwood Blvd, Suite 201.

Got a notice of default or a sale date?

Call Shawn Rabban today. The sooner we see the property, the more options you have. Open every day, 9am to 7pm.

Call (310) 714-5616Or apply online

Foreclosure bailout loan questions

What is a foreclosure bailout loan?

A short-term private loan, usually a bridge loan, that pays off a past-due mortgage in full before the trustee's sale, so the foreclosure is cancelled. It is based mainly on the property's equity, which is why it can close in days instead of weeks.

How fast can a foreclosure bailout loan close?

With City Capital Realty, in as little as 7 business days once we have the property details, title and the lender's payoff figure. The sooner you call before the sale date, the more options you have.

How much can I borrow to stop a foreclosure?

Up to 70% of the property's value, from $500,000 to $5,000,000. The loan has to cover the payoff of the defaulted loan and closing costs.

Do I need good credit?

Credit matters less than equity. We look mainly at the property, its value, what is owed and your plan to repay, which is usually a sale or a refinance.

What does a foreclosure bailout loan cost?

Our current terms are 9% interest-only, a 2% origination fee and 4 guaranteed monthly payments. Rates and fees are subject to change without notice. Some restrictions may apply. Subject to credit approval.

Can you stop a sale that is days away?

Sometimes. Under California law you can catch up on the missed amount until five business days before the sale, and paying off the loan stops the sale up to the auction. The closer the date, the harder it is, so call the day you get a notice.

Is it the home I live in?

Most of our loans are business-purpose: rentals, investment and commercial property, and property held in an LLC or trust. If it is the home you live in, call us and we will tell you honestly what applies. A free HUD-approved housing counselor is also a good first call.

How do I avoid a foreclosure rescue scam?

Never pay a large fee before any work is done, never sign your deed over to someone who promises to save the home, and check every lender's license on the DRE and NMLS sites. Our licenses: DRE 00667328, NMLS 298861 / 729817.

Related: bridge loans, hard money loan calculator, how our loan process works, California's new foreclosure auction law.

Sources

  1. ICE, May 2026 Mortgage Monitor (average days to close, March 2026) (opens in a new tab)
  2. California Civil Code § 2924 (notice of default and the three-month wait) (opens in a new tab)
  3. California Civil Code § 2924f (notice of sale at least 20 days before the auction) (opens in a new tab)
  4. California Civil Code § 2924c (right to reinstate until five business days before the sale) (opens in a new tab)
  5. California Civil Code § 2903 (right to redeem by paying off the loan) (opens in a new tab)
  6. California Civil Code §§ 2923.5, 2923.6 and 2924.11 (Homeowner Bill of Rights) (opens in a new tab)
  7. California Civil Code § 2945.4 (foreclosure consultants may not collect fees before every service is done) (opens in a new tab)
  8. California Civil Code § 1695 and following (Home Equity Sales Contracts Act, protections when you sell to an equity purchaser) (opens in a new tab)
  9. U.S. Department of Housing and Urban Development, Avoiding foreclosure and free housing counseling (opens in a new tab)
  10. California Department of Real Estate, license lookup (opens in a new tab)
  11. NMLS Consumer Access, license lookup (opens in a new tab)
  12. National Law Review (press release from the consumer groups that represented the owner), Pacoima trustee sale reversal (March 24, 2026) (opens in a new tab)
  13. City Capital Realty, “California's AB 1957 changes foreclosure auctions in 2027” (October 17, 2026)

This page is general information, not legal or financial advice. Talk to a California real estate attorney about your situation. City Capital Realty is licensed in California (DRE 00667328, NMLS 298861 / 729817). Loans are for business-purpose real estate and subject to credit approval. Rates and fees are subject to change without notice. Some restrictions may apply.