PRE-FORECLOSURES

Pre-foreclosure is the first step in the foreclosure process. It's designed to give homeowners options to stay in their homes before a foreclosure. Pre-foreclosure occurs when a homeowner fails to make mortgage payments, prompting the lender to issue a notice of default.  ​  

The phase between falling late on the mortgage loan and actual repossession or foreclosure auction presents opportunities to cure the foreclosure several different ways. This includes a short sale, loan modification, signing over a deed in lieu of foreclosure or the sale of the property prior to the actual foreclosure.