Question:

What is a pre foreclosure?

Answer:

Delinquent borrowers facing foreclosure should know what is a pre foreclosure, as this is a real chance to get out of debt without damaging their credit reports. A pre-foreclosure is the opportunity given to a delinquent borrower to sell their home and satisfy mortgage debt even if the sale proceeds do not suffice to cover the whole debt.

Pre-foreclosure will save you from foreclosure. With pre-foreclosure, pending foreclosure will be put off and you may be able to save your credit report from getting a foreclosure mark on it. On a pre-foreclosure sale, a potential buyer may approach the current homeowner and offer a largely discounted price for the house - 30% and more. The homeowner will be glad to take any cash, as it will satisfy mortgage debt, and can walk away clean from obligations.

A pre-foreclosure sale will have to abide by HUD rules for participation in the HUD PFS (pre-foreclosure) program.

 

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage