Pre-foreclosure refers to the period before a property is officially foreclosed on. It occurs when a homeowner has defaulted on their mortgage payments and the lender has begun the foreclosure process. During this time, the homeowner may still have the opportunity to sell the property and avoid foreclosure.
Buying a pre-foreclosed home can be a good opportunity to get a property at a below-market price. However, it is important to be aware of the risks involved. The homeowner may be in financial distress and may not be able to maintain the property. The property may also be in need of repairs.
