Letâ€™s try a bit different tack here.
If you are starting the â€œpre-foreclosure processâ€, it sounds like you might be looking at doing a short sale. If that is the case, then the lenders who hold your note(s) will want full disclosure of all debts AND sources of income in order to determine if they should proceed with a short sale. If indeed this is what you are doing, debt must be disclosed to the lenders but NOT to a prospective buyer. In fact, it is in your best interest to disclose ALL debt to solidify your position as no longer being able to meet your obligations.
You asked, â€œDoes the seller have to list all known debts to others before starting or going through the foreclosure process.â€
No disclosure is required if you plan on allowing the bank to foreclose. They already know what they need to know â€“ you are no longer paying your debt obligations and, under the contract you have with them, they have the recourse to foreclose. That is disclosure in and of itself.