• Pre-foreclosure is the initial stage of the foreclosure process that occurs when a homeowner defaults on their mortgage payments. It typically begins after a borrower misses three consecutive monthly payments, prompting the lender to issue a notice of default.

  • The duration of pre-foreclosure can vary from weeks to more than a year, depending on state laws and court proceedings.

  • Homeowners in pre-foreclosure have several options:

    1. Negotiate with the lender to create a repayment plan

    2. Seek a mortgage forbearance

    3. Sell the home as a short sale

    4. Pay off the outstanding debt to avoid foreclosure

  • Pre-foreclosure is a warning phase where the homeowner still has opportunities to resolve the debt. Foreclosure occurs when the lender takes legal possession of the property and proceeds to sell it at a public auction.

  • A home enters pre-foreclosure when:

    1. The borrower breaches their mortgage terms (usually by missing payments)

    2. The lender issues a notice of default

    3. The notice is filed with the court and becomes public record

  • Yes, homeowners can potentially stop pre-foreclosure by:

    • Contacting their mortgage servicer immediately

    • Arranging a repayment plan or loan modification

    • Selling the home

    • Paying off the outstanding debt