As long time Orange County Realtor’s we’ve been asked the question before: “what is a pre-foreclosure?”
This is a good question since many people have gone through foreclosure, or have known someone who has had their home foreclosed on in the last 5 years.
In this post we will break down exactly what a pre-foreclosure is so you can have a better understanding of how the overall foreclosure process works.
The Road to Foreclosure
A pre-foreclosure happens when the homeowner is at least four payments behind on their mortgage. When someone is in pre-foreclosure they still have a chance to get back on track financially before going through the foreclosure process if they are able to catch up their payments or sell their property to pay what they owe.
Great Way to Find Foreclosures
If you’re thinking about buying a foreclosure, pre-foreclosures are great to search for and you can typically find them by searching through local tax records or keep an eye on public notices since the public will be notified if a homeowner has fallen into default with their mortgage loan.
It’s important to know that although a home may be in pre-foreclosure that doesn’t mean it’s necessarily for sale.
The owner of a home in pre-foreclosure may be trying to resolve their pre-foreclosure with their bank to cure the default so it may take months until the home actually becomes a foreclosure or short sale.
For more information about pre-foreclosures, or to view homes for sale across Orange Count, contact Fred Sed & Associates today by calling us at (949) 272-0125 or click here to contact us online.