Do You Know the Difference between “Foreclosure” and “Pre-Foreclosure”?

A “Pre-Foreclosure is when you purchase the home directly from the homeowner after the bank has started the foreclosure process. It involves taking over the owner’s mortgage, which can include making the missed payments. The “Pre-Foreclosure Stage” is referred to the period when a Notice of Default (also referred to as Lis Pendens) is issued until the time the lender puts the property up for auction (This time period is a few months). A “Foreclosure” is the stage when there is a Judgment to Foreclose entered against the Defendant. In the Judgment, documents specifiy the balance due to the Plaintiff and the redemption date. Usually a week or two after the redemption date, an auction sale is scheduled.