Foreclosure in 91354>Question Details

Nicole, Home Buyer in Valencia, PA

What is the difference between foreclosure and pre-foreclose?

Asked by Nicole, Valencia, PA Thu Apr 24, 2008

I lease a home that is in pre-forecloure...I know I have 90 days from the NOD. I'm confused because we did not get that yet. We called the owners bank and they said it was June31st ...the date it went on record(they were not helpful). I was told by someone you get a notice on the door (NOD) and you get 90 days from that?

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A pre-foreclosure home is any home the home owner has defaulted on their mortgage. After a home owner has missed three consecutive mortgage payments the bank starts the foreclosure process. There are many steps that have to be taken for the bank to foreclosure on a property and each state the process varies. Until the foreclosure sale is executed the home is in a pre-foreclosure status.
1 vote Thank Flag Link Thu Aug 20, 2015
Hi Nicole,
Did you contact a title officer or your real estate agent yet? If not, you should ,it will not cost you much. We are all ready to help, there are too many people suffering from the real estate mess.
There could be many reasons why you did not get the notice. It could be that the notice got sent to the owner, which is what it should be. The NOD tells the owner that he is missing payment and the lender wants its money. So the lender will starts the foreclosure procedure which has 3 steps
NOD- Notice Of Default is recorded, that is the beginning, it proves that the borrower has stopped paying his mortgage.
NOT-Notice Of Trustee's sale 3 months later. The trustee , who is a 3rd party, schedules a date for selling the property at a court auction. The trustee sends a notice to the borrower of the loan=owner
REO- the lender buys the property back at the trustee sale, no sooner than 21 calendar days after the 3 months have passed. Since the loan is secured by a note on the property, the bank who gave the loan wants its money back and if it can't get it from the owner, it will take back the property. that's the whole idea of a mortgage. At this point the property belongs to the bank= Real Estate Owned by the bank.

The bank=the lender does not have to tell you anything , it is trying to "talk" to the owner so that he goes back to making his payments. And another thing you should know is that the sale can be postponed many times in order to give more time to reinstate the loan or to sell the property as a short payoff. If your landlord is dealing with all this himself, he knows what is going on, ask him. If he has a 3rd party helping him , ask them.
A short pay could take a long time, the only thing short about it is the amount of money the lender get. When and if it gets and offer accepted, it could also fall out of escrow. It will take another round yet to start the selling process.
If they don't sell it as a short sale, it will get sold later as REO=foreclosed for good. Now it takes a long time between the time the bank sorts out their file and the time it is put on the market as a REO.. They have to do paperwork and they are sometimes submerged. The bank will then hire a agent to list the property. Then again it takes time until it sells. Then maybe the bank will have to evict the tenants, that takes more time.

Do you see why the bank is loosing money if you go by the old adage that "time is money"?

Maybe you want to buy that property. Make an offer!

Did you get that notice on the door yet?

Good luck!

Muriel Levin, Realtor, Certified REO specialist
Agent Immobilier a Los Angeles, Californie. Specialiste de Reprises de Banque.
Web Reference:
1 vote Thank Flag Link Mon Feb 9, 2009
There is a difference between a pre foreclosure and a foreclosure. The time period between the first missed payment and the final bank sale is called the pre foreclosure phase. Foreclosure is a legal process that is initiated whenever a homeowner defaults (stops making payments) on their mortgage(s). When the foreclosure is completed the home is either sold at auction or becomes real property of the lender and is now owned by the lender REO, Real Estate Owned. Many of you have heard these terms on the news lately or see these types of homes in your communities. Would like to know what these terms mean or understand how the short sale process works?

Go to:…

Jennifer Ricco CDPE, PSC, e-PRO, WCR, Retired LAPD
Keller Williams VIP Properties
25124 Springfield Court
Valencia, Ca 91355
661.803.2093 cell
866.873.6403 fax
'Quality Consulting Through Continuous Improvement'
License 01461940
0 votes Thank Flag Link Sat Feb 13, 2010
NOD Notice of default. Your given notice and you are in default. Delinquent status and prior to Notice is pre foreclosure.

The argumments one needs to succeed in these endeavors means you must have ample knonwledge of the lender recovery rules, regs and guidelines...otherwise. You have NO shot!
0 votes Thank Flag Link Thu Jul 9, 2009
A "forecloced " home in which the bank has complete ownership with no attachment to the previous owner while a pre-foreclosure is on the way to becoming a "foreclosure" but is not there yet.
0 votes Thank Flag Link Mon Feb 9, 2009
Pre foreclosure would be considered being in a short sale situation. A short sale is when a home seller is trying to make arrangments with the bank they owe the loan to. They are trying to negotiate a price offer to the bank that is short of what they actually owe so they can get out of there house and protect their credit standing. A forclosure is when the bank owns the property and the sellers are no longer involved.
0 votes Thank Flag Link Fri Apr 25, 2008
Hi Nicole,

I am sorry to hear about your situation and would like to offer my assistance. If you can send me the address of the property I would be happy to look it up and find out if the NOD (Notice Of Default) has been issued yet. If the NOD time period has already elapsed I can also find out when the Trustee's Sale is slated to take place.

You are correct that there is at minimum a 90 period from the time the NOD is issued before the property is scheduled for Trustee's Sale. Once that occurs, unless it is postponed by the lender or the seller, the sale will occur no less than 21 days after that.

So, what that means to you is that best case scenario, you have a minimum of 111 days to make other living arrangements. Please contact me and I will find out what your actual time frames are.

By the way, the previous agent did an excellent job explaining the difference between Foreclosure and Pre-Foreclosure, however if you have any additional questions or need more clarification or information do not hesitate to call or shoot me an email via Trulia or my website.

Take care, good luck and have a wonderful day!

Tisza Major-Posner, Realtor, IVPG (909) 837-8922 or (213) 392-4084
Web Reference:
0 votes Thank Flag Link Fri Apr 25, 2008
Foreclosure is when the bank or mortgage holder takes the property back for non-compliance with the terms of your agreement "Note". Pre-Foreclosure is is a home that will be foreclosed on within a very short period of time. Some of your best buys come from pre-foreclosures. Pre-foreclosures are sold by the home owner at reduced prices for a quick sale and some are sold by the bank in a "short sale". Either way, you can get a great deal.
0 votes Thank Flag Link Thu Apr 24, 2008
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