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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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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