What are Pre-Foreclosures

Written By: Miller and Associates Realty On: 23rd September 2013 Under: Buyers, Economy, General, Listings, Market Updates, Panama City Condos, Panama City Subdivisions, Real Estate Market

What are Pre-foreclosures?

Every week real estate agents field calls at the office asking about a property that is in foreclosure but very often these properties are “pre-foreclosures” and are not for sale.  This is a bit confusing and frustrating to buyers so let me explain.

A pre-foreclosure is a home in which the owner is more than 90 days delinquent on their mortgage payments to their lender.  The bank has started filing documents for the foreclosure process but these properties are not yet for sale.  Many online real estate databases such as Zillow, RealtyTrac and Trulia capture these court filings from publicly available records found in clerk of courts offices all around the country.  For example when a home owner is delinquent on payments, a bank will file a document called a lis pendes (latin for suit pending) to give notice to the home owner as well as other lien holders that may have a claim to the property.  Most of these properties are only in some stage of the foreclosure process and are not necessarily for sale  as many homeowners are able to catch payments up, work out a deal with the lender or in some cases file for bankruptcy.

The bottom line is that most pre-foreclosures never get make it to foreclosure.  If you can’t find a Multiple Listing Service (MLS) number for the property, then it isn’t for sale. The place for the most up-to-date information on homes for sale is the MLS and your local real estate office. Written by: Allen Place