Foreclosure in Austin>Question Details

Mshouse18, Home Buyer in Tampa, FL

home is pre foreclosure what does that mean

Asked by Mshouse18, Tampa, FL Tue Jan 3, 2012

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Pre foreclosure is a good sign the property will be going into foreclosure. Some short sales can be approved short sales, but once the property is in pre-foreclosure, there is a good chance a short sale will not go through and that the bank will be the next to list the property.
0 votes Thank Flag Link Thu Jan 5, 2012
Pre foreclosure usually means the owner is in default on their mortgage by missing enough payments to get the bank's attention. May be on the market now as a short sale. Or may be on the market as a foreclosure anytime in the next year. Every state is different on their foreclosures so time periods may be faster in your area. Unless it is on the market, most of the time, it is not available for purchase.
0 votes Thank Flag Link Wed Jan 4, 2012
Mshouse18,

The term 'pre-foreclosure' normally meas a 'short sale'. Meaning the sellers are in the process of foreclosure and need to get it sold before the foreclosure sale date. A short sale is a way the home can be sold for less (short) than what is owed so the seller can get out from under it without the credit hit of a full foreclosure. short sales sometimes can be good deal but generally are not 'short' when it comes to the time it takes to come to agreement with the seller's bank and get it closed. Average is 3-6 months.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Wed Jan 4, 2012
Hello,

Pre foreclosure is a short sale. The seller will need his/her mortgage holder to approve the sale before you can close on the property. This can take anywhere from 2-6 months, and in many cases longer.

If you have the patience a time, it's a great opportunity to purchase a home that was previously valued for more, and may still be, at a reduced price.

I specialize is these types of transactions if you need further assistance.

Good luck!
0 votes Thank Flag Link Wed Jan 4, 2012
You got your answers below from the other agents, as a home buyer I strongly suggest to you to work with a Buyers Agent, i.e. a Realtor who works for you on your behalf, finding the right properties for you, making sure you are pre-approved, make appointments, accompany viewings with their added expertise, pointing out the good the bad and the ugly of a property, and being able to find out where the standing of a for sale property is....
pre-foreclosure, foreclosure, short sale, short sale approved etc. etc.

I recommend strongly not to do this on your own, especially since it seems you may look at foreclosure to get
a good deal. And just a word of caution, some may be good deals and others may not, just because it is
a foreclosure or will be one, does not yet make it so, but could be, therefore get a professional local Realtor
involved, and make sure you do have an inspection, in some cases depending on the inspection results you
may need other professionals building specialists etc. to double check certain conditions of the home...

Just be careful! And take it one step at a time and make sure you protect yourself....

Good Luck to you...
Edith YourRealtor4Life! and Chicago and Northern Illinois Expert (incl. the upscale North Shore)
Working always in the very BEST interest of her clients, buyers, sellers and investors alike.
Edith Always goes the X-tra Mile with a Smile for her clients! & Edith Loves Referrals
To get to know Edith as a person and on add. pages on her website learn about how the
expertise and services of a Realtor are helpful ... go to http://www.tinyurl.com/MeetEdithHere
0 votes Thank Flag Link Wed Jan 4, 2012
A pre-foreclosure occurs when an owner has failed to make mortgage payments, thus defaulting on the loan and a lis pendens has been filed; at this point an owner can try to catch up with missed payments, try for a loan modification, short sell, etc.; if nothing is done, the lender can then foreclose and auction the property.
0 votes Thank Flag Link Wed Jan 4, 2012
They are either trying to sell it as a short sale or the lender has already filed the initial paperwork to foreclose on the property and just waiting for the process to work its way out until they (the lender) can officially take the properyt back. either way, you may be able to get the property at a good price.
0 votes Thank Flag Link Wed Jan 4, 2012
Most likely it means the unit is in short sale and you are trying to buy the property before it goes into full foreclosure.
0 votes Thank Flag Link Wed Jan 4, 2012
Generally, pre-foreclosure is the time between the notice of default and the foreclosure date of sale.
Take heed; it would behoove you to engage a knowledgeable Realtor to guide you through the transaction.
In Florida, as a buyer there is no charge to a you; the agent is compensated by the seller, or in the case of a short sale , the lender.
It has come to my attention that in certain jurisdictions Realtors may impose a charge to the buyer. However, this not written in stone, and the merit of engaging that agent should be carefully evaluated prior to any committment.
0 votes Thank Flag Link Wed Jan 4, 2012
Mshouse,
Pre-foreclosure means if you want to buy it you are in a race with the bank. It also means this will likely be a short sale, meaning the owner owes more than what the home is currently worth and the lender(s) will need to approve the final sale price.
A short sale can take 3 to 9 months for lender approval, but may still end up in foreclosure. Ideally you will have an agent on your side knowledgeable and experienced with short sales and an equally knowledgeable or better agent on the listing side.
0 votes Thank Flag Link Wed Jan 4, 2012
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