What Does Pre-Foreclosure mean?

Pre-foreclosure is a condition where the owner of a particular property is late for a period more than ninety days on their payment. In this situation, the lender commences the process of foreclosure with a given notice to the trustee sale. A pre-foreclosure property is already under the process of foreclosure, but the owner still holds the legal ownership. It may or may not move into a short sale.

Pre-foreclosure property, is a property, where the process of foreclosure has may or may not started. It is not required to file a formal foreclosure notice in public records for the particular property to be considered as a pre-foreclosure one. However, in many cases, the notice of this default needs to be made a public record.  In other words a pre-foreclosure property implies that the property has not yet been foreclosed and that the seller is behind on the mortgage payments. Here, the seller does have the option of making his mortgage payments and making the loan current. Only then, the home will no longer be considered as a pre-foreclosure home. If the seller continues to be a defaulter and does not make any mortgage payment, the home will be eventually foreclosed and seized by the particular lender or the bank.  One should note here that just because the property owner is a defaulter in matters of payments, it does not however imply that their property will go through the process of foreclosure and end up in the inventory of the bank.

A pre-foreclosure deal commences between a buyer and seller. But then too, the lender will have to approve the offer from the buyer.  Both buyers and sellers are likely to avail a lot of benefits from a pre-foreclosure property deal. Here, the seller gets an opportunity to get rid of the property that he cannot afford without suffering any damages with regard to the credit (during the foreclosure). On the other hand, the buyer gets a chance to get that property at a rate a way below the market price. The lender highly benefits when this loan is acquired by a purchaser who is monetarily stable.

We enjoy buying pre foreclosures because we get to help the seller out of a potentially devastating situation.   If you are in pre foreclosure contact us immediately because the amount of time that we have to resolve your situation is probably very short.  Sell your house fast to Jake Buys House.