If someone is in pre-foreclosure, this means that they have missed some payments and need to make a plan (possibly a short sale) or risk losing their home in a foreclosure auction. Anything that says 'pre-foreclosure' on the MLS generally refers to short sales--homes where the seller owes more to the bank than the home is worth and where the agents need to negotiate with the bank in order to seal the deal before the foreclosure auction. Hope that helps!
In Florida this is typically how things work: A short sale is when a lender and/or servicer accepts less than a full payoff of the mortgage balance. They sometimes do this instead of foreclosing on a home. If they foreclose on the home buyers can bid at the foreclosure auction (After the bank forecloses) If no one buys the property at the foreclosure auction the lender/servicer will often list the home with one of their preferred real estate brokers. If the broker doesn't sell the home within a certain time frame they will often either sell the property to a hedge fund or private investment group or they will put it in an upcoming auction. I hope this helps some
Florida Licensed Real Estate Agent
Prudential Florida Realty