Real Estate Pre foreclosure

A real estate pre foreclosure is a foreclosure that has not been sold at the trustee's sale or sheriff's sale yet. Different real estate investors use the term real estate pre foreclosure to mean different things.

So what is a real estate pre foreclosure?

To some, a real estate pre foreclosure is simply a situation where a homeowner is going to be foreclosed on eventually, such as after the first missed payment. A more strict definition of a real estate pre foreclosure is after a homeowner recieves the Notice of Default or Lis Pendants, but still before the trustee sale. Either way, it covers the time of a homeowner's hardship up until the property is no longer owned.

What does real estate pre foreclosure have to do with a Short sale?

A real estate Short Sale must be initiated during a real estate Pre Foreclosure. It would be too late to start a Short Sale process after the trustee sale when the owner can't sell the home any longer, and it would do little good for a homeowner to attempt to initiate a Short Sale before any payments have been missed. Lenders always want to hear a good reason and see some evidence before they consider a Short Sale, so if your account is in good standing with them, they may question your motives.

What do I do if I'm in a real estate pre foreclosure?

Even if you owe more than what the property is worth, you've got a few choices. If you want to keep your home first and foremost, you still have a chance to do so by finding a way to catch up on your payments. Sometimes a lender will even let you skip a payment or tack it onto the backside if they think that they will lose more money otherwise... Depsite popular belief, banks do not prefer to repossess properties, it actually costs them money to do so, and in the meantime they'll be missing your payments.

If you are willing to sell your home, your best move is to contact an investor who is experienced in Short Sales, before your real estate pre foreclosure turns into a trustee sale and you're time is up.