Pre-foreclosure
The period between a homeowner's missed mortgage payments and the foreclosure sale, when the owner can still cure the loan or sell.
Definition
Pre-foreclosure is the period between a homeowner falling behind on the mortgage and the foreclosure sale. It becomes public when the lender records a notice of default or files a foreclosure lawsuit with a lis pendens, depending on the state.
Federal mortgage servicing rules generally bar a servicer from making the first foreclosure notice or filing until the borrower is more than 120 days delinquent, so a property in public pre-foreclosure has usually missed several payments. During this period the owner can still bring the loan current, get a modification, sell the property, arrange a short sale or sign a deed in lieu. For an owner with equity, a sale is often the cleanest way out, because it pays off the loan and avoids a completed foreclosure. Timelines run from a few months in fast non-judicial states to well over a year in some judicial states. Rules vary by state; confirm with a local real estate attorney.
Source: consumerfinance.gov
Read the guide
Foreclosure · 12 min read
Pre-Foreclosure: What It Is and How to Reach Owners Before the Auction
What pre-foreclosure means, how the timeline runs in judicial and non-judicial states, where the records are, and how to reach owners the right way.
Foreclosure · 8 min read
Notice of Default: What It Means and What Happens Next
What a notice of default is, how to read one, the California timeline to a trustee sale, how to find recorded NODs, and how to reach the owner the right way.
Foreclosure · 8 min read
What Is a Lis Pendens? A Plain Guide for Investors and Agents
What a lis pendens is, which lawsuits produce one, how it affects title and buying, how it ends, and how to find one in county records.
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