What is a PRE- FORECLOSURE?

Pre-Foreclosure means exactly what it says. Typically the Mortgagor has stopped paying or is behind with their mortgage payments and the Bank has started some form of foreclosure process.

The owner has still time to make the delinquency good and stop the foreclosure process. Other options for the owner are to attempt a "Short Sale", where the mortgagor attempts to sell the property for less than they owe. This can only be done with the approval of all lien holders on the property.

Typically where there is more than one lien holder it can be difficult to achive as the primary lien holder stands to get the property back in foreclosure where the junior lien holders may get nothing. Therefore the primary lien holder typically takes a firm position not letting the junior lien holders get much at all.

Still it can be done and it worth trying should you find yourself in this position.