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.

 

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