A Pre-Foreclosure sale is when you sell your home before foreclosure proceedings are brought against you. Sometimes this will be classified as a short sale by the lender, which is when they allow you to sell the home in a pre-foreclosure time frame for less than the amount you owe on your mortgage.You May Qualify for a Pre-Foreclosure sale if you are less than two months behind on your mortgage and if you believe you can sell your home within 3 to 5 months from the time the pre-foreclosure short sale is agreed upon by the lender or servicer. A new appraisal will be required for the lender to determine whether or not the new value meets necessary guidelines for pre-foreclosure sales.
A short sale can benefit all parties involved, since the foreclosure process is both costly and time-consuming.
Usually if there is enough equity in your home you can sale your home prior to the foreclosure sale date. This will save you from completely damaging your credit.
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is subject to change without notice. All loans are subject
to credit approval. Equal Housing Opportunity.