In very simplistic definition, pre-foreclosure means the current homeowner is unable to make the loan payment(s) as agreed in the executed mortgage(s). So the current owner is selling the house and he/she has 120 days to sell otherwise the home will go to auction for the highest bidder...so the bank(s) could get their money back.

The steps or mile stones during the 120 days are describe as "preforeclosure" (aka short sale), "foreclosure" (aka auction), "REO" (aka real estate bank owned).

During the preforeclosure stage the homeowner still owns the home but to sell the home at a price
"lower" than the current loan balance, the sale needs the bank(s) approval.

During the foreclosure stage, the homeowner has "up to" the 5th day before the scheduled auction date to cure the loan default status.

After the auction date, the homeowner "no longer" owns the home and the bank takes back the home and it is the new owner ... the bank, hence, REO.

It makes NO difference in terms of preforeclosure and foreclosure "processes" any where in the US. However, the sale price of a distressed home varies subject to property location, condition, loan balance(s) on the property, financing condition (1st AND 2nd or just 1st mortgages), and buyers demand.

"Timing" is equally important in acquiring these properties, including knowledge of writing an attractive offer, buyer's financial strength, negotiation skills, etc.

I can write a book on this subject and for your questions. So if you would like more information, send an email.

Email: Contact@ActusPropertySolutions.com
Phone: (888) 525-0125

Pre-foreclosure would indicate the homeowner is behind on their mortgage payment. The first stage is known as Notice of Default or NOD. This is where the lender publically files the NOD putting the homweowner on notice that the foreclosure process has started. The next stage would be a Notice of Trustee Sale filing where the lender issues a sale date. That sale typically takes place at the county courthouse and anyone can bid on the property then. The homeowner can bring the loan current up until the actual Trustee Sale date.

The homeowner may elect to put the home on the market and sell it before the Trustee sale. Many homeowners today are doing this but they owe more then they can sell for, creating what is known as a short sale. They must work with their lender to see if the lender will take less than what is owed. When you see two prices offered on various web sites, one may be the list price, the other may be the mortgage amount or perhaps even the Trustee sale minimum bid price.

At any rate, if the property is listed with a broker and on the MLS any agent can show it to you. I would suggest hiring a buyers agent to help you as they will know the local custom on how to handle this issue. I'd be happy to refer you someone. Good luck!