What does preforeclosure mean?

When a homeowner misses 3 months of payments on their mortgage, the lender will most often send them a notice of default signaling they’ve entered preforeclosure. This is often an opportunity to try to work with the lender before entering foreclosure.

How do I know if my house is in preforeclosure?

Your lender will reach out to you with a notice of default for missed payments. When this happens, you’ll want to contact your lender and begin exploring options.

What’s the difference between foreclosure and preforeclosure?

Preforeclosure is the first step in a foreclosure when the lender has given a notice of default to the borrower. During this time, the homeowner has an opportunity to work with the lender to either keep the home or negotiate a short sale. Foreclosure means the home can now be put up for sale by the lender and an eviction notice will be served if the homeowner hasn’t vacated the property.

How long is the preforeclosure process?

The exact terms of the foreclosure and preforeclosure process vary by state and mortgage lender. So, the amount of time a house will be in preforeclosure is hard to know for certain, but it’s most often a minimum of 30 days.

Preforeclosure: What It Is And How It Works