What is a preforeclosure?
A preforeclosure is a property whose owner has defaulted on the loan payments and whose lender has initiated the foreclosure procedure, usually starting with an official “Notice of Default” to the owner. A preforeclosure property exists during the first stage of the legal procedure, and therefore still belongs to the owner. The length of the preforeclosure period depends on type of foreclosure process mandated by state law and the applicable legal documents the borrower signed with the lender when the property was originally purchased. As mentioned earlier, either judicial or non-judicial procedures are required by law in different states.
Related Questions
- Hi Dan - When you say the house is in preforeclosure, do you mean the owners have already received a notice of default on the property?
- How do I access information on preforeclosure, foreclosure and short sale properties for sale?
- Must a Partial Claim be deducted from the Net Proceeds of a Preforeclosure Sale?
