Pre-foreclosure
The window between the first notice of default and the foreclosure auction. Owners can still sell during this time. Investors often look for deals here.
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Part 1 of 4
Why a seller cares
Pre-foreclosure is the stretch between the first notice and the auction, and the home can still be sold normally. It is where investors look for discounts and where a listed sale, given time, usually does better than their offers.
Part 2 of 4
A simple example
In pre-foreclosure with $40,000 of equity, you get cash offers at $200,000 and a listing suggestion at $245,000 with sixty days to close.
| The path | What it tends to bring |
|---|---|
| A cash investor offer | A fast close at a steep discount |
| A listing with time to run | A price near market, if the auction date allows it |
| A short sale, if there is no equity | Lender approval, months, and the debt settled |
Pre-foreclosure is a window. How wide it is decides which path pays.
Part 3 of 4
What people get wrong
That pre-foreclosure homes can only be sold to investors. They can be listed like any other, and the auction date is the only difference.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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