I occasionally get phone calls from buyers who discover a new home that has appeared on one of those popular home search sites. Marked pre-foreclosure, the buyer is often disappointed and confused when I explain that this home is not for sale. Doesn’t make sense, does it? Let me explain.
What is pre-foreclosure?
Foreclosures occur when the owners of a home have stopped making their mortgage payments. The bank begins legal proceedings to repossess the home. Foreclosing on a home is a lengthy process that doesn’t have a consistent timeline. Sometimes it takes six months but other times it can take years.
Pre-foreclosure means that the bank has notified the owners that the property is in default and they are starting the proceedings to foreclose on a home, but the process is just beginning. Owners have the option of doing a short-sale to avoid negative ramifications on their credit that a foreclosure would cause. Since these are all legal proceedings, it is public information that can be shared. Because of this, these homes will show up on home sale search sites. Often, a home marked pre-foreclosure on the search results list will be removed because the owner and bank come to a resolution.
Should I consider a pre-foreclosure home?
My best advice is to not even look at a pre-foreclosure home. It’s not for sale and there is no clear answer as to if it ever will be. If you are searching for a home for sale, I can help set up a customized search for you that will target the specific features that you are looking for in a home. Let’s talk at 540-360-5166 and get your home search started today!
