what is Foreclosure and Pre-Foreclosure ?

Foreclosure is a legal process that occurs when a homeowner defaults on their mortgage loan, meaning they fail to make their monthly payments as required by the loan agreement. In such cases, the lender may repossess the property and sell it at a public auction to recover the outstanding debt. Foreclosure usually happens after a period of delinquency on mortgage payments, which varies depending on the terms of the loan and the laws of the state where the property is located.

Preforeclosure is the stage that precedes foreclosure, during which the lender notifies the homeowner that they are in default and that legal action may be taken if the payments are not brought up to date. At this stage, the homeowner still has an opportunity to avoid foreclosure by bringing the mortgage payments current, negotiating a loan modification or a forbearance agreement with the lender, or selling the property to pay off the outstanding debt. Preforeclosure is also known as the default stage, and it typically lasts for several months, depending on the state and the lender's policies.