what does preforeclosure mean. does the owner still have time to pay what is due?

Asked by Sweetpea, Manahawkin, NJ Mon Oct 18, 2010

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Ron Simone Jr’s answer
Ron Simone Jr, Agent, Clark, NJ
Mon Oct 18, 2010
Preforclosure means that the bank has started the forclosure process. This process could take up to 2 years to go into forclosure some banks move more quickly than other. The bank holds the title until the home is paid off that is what your mortage is. If you are looking to buy a preforclosure those are reffered to as "Short Sales" meaning techinically the homeowner still owns the home until it is forclosed on but now it is the bank making the desicion on what they are willing to take as a payoff on the existing mortgage. The homeowner is no longer in control. This process if you are working with a realtor who knows and is educated in the short sale process may take up to 60-90 days to close. Most are not educated in the process. If you have any further questions please feel free to contact me at anytime. I have close 42 short sales already this year. It is a long and tedious process. My cell is always on and emails come right to phone.

Ron SImone Jr.
All Towne Realty
732-978-0991 Cell
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1 vote
Laura Gianno…, Agent, Manahawkin, NJ
Mon Oct 18, 2010
In New Jersey, the bank has to file notice that it intends to foreclose...that's what's known as pre foreclosure. The owner can pay what due, sell the property (if there's equity) and pay what's owed, negotiate a short sale or try for a loan modification. If you need information on any of these options, give me a call I'm in Ocean Acres!

Laura Giannotta
Keller Williams Realty - Atlantic Shore
1 vote
Nicholas Tuk…, Agent, Colts Neck, NJ
Tue Oct 19, 2010
Depending on the homeowner's situation, such as income and the amount owed, they generally will be able to work something out during pre-foreclosure stage. The property belongs to the owners until the auction. However, there is also a redemption period of 10 days or so after it sells at an auction when the homeowner can still keep the home if financial obligations are met.
0 votes
Bob Movin-On, , Hartford, CT
Mon Oct 18, 2010
It means someone has defaulted on their loan and the bank has started foreclosure proceedings. Foreclosure is a legal process and takes time, the amount of time will very from state to state, lender to lender, judge to judge, client to client.
Yes a owner can remove themselves from preforeclosure.

Bob Patrick
Buy a home after foreclosure expert
0 votes
Diane Glander, Agent, Spring Lake, NJ
Mon Oct 18, 2010
There are many stages of foreclosure. Until the bank takes it back, it is called pre-foreclosure. Many things can happen while the house in a state of pre-foreclosure: the owners can work out a loan modification plan, pay it current, request permission to short sale, refinance, etc.
Web Reference:  http://www.dianeglander.com
0 votes
Lyle Wolf, Agent, Morristown, NJ
Mon Oct 18, 2010
You may find my Trulia Blog: "What Every Buyer Should Know About Short Sales" useful.
0 votes
Marc Williams, , Manchester Township, NJ
Mon Oct 18, 2010
Sweetpea- I have worked on over 1,000 closed REO properties with many different lenders in several states. Before they became REO's ( real estate owned) they were in foreclosure, ie: pre-foreclosure.
In the 7 years i handled these it was very rare for a lender NOT to take the money. However you need to connect with the attorney who is doing the foreclosing.

0 votes
Bruce Waller, Agent, Toms River, NJ
Mon Oct 18, 2010
Time to repay the past due depends on how far behind you are, if your are in contact with someone from your lending insituation and they are willing to work with you then it will prolong the forclosure process. preforclosure is the beginning process that all banks must do to follow reguations. if you owe more than the house is worth, then you really need to re-evaluate. If you have just been listed a preforclosure, it could take up to and even over a year.
Best advice to decide if its worth saving, if it is work with the lender. The last thing they need is another house that they will lose money on.
best wishes and good luck. your not alone.
0 votes
Sandra O'Kee…, Agent, Bridgewater, NJ
Mon Oct 18, 2010
If a house is for sale and it's in pre-foreclosure, it's important for a prospective buyer to know that the "homeowner" may still be in residence, but it is the bank who will be making the decisions about sale price and terms.
0 votes
Meyer & Boss…, Agent, North Attleboro, MA
Mon Oct 18, 2010
Pre-foreclosure means the bank has started the foreclosure process on the home. It is not to late until the auction actually happens. Some houses can be in preforeclosure for months, others quicker.
0 votes
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