Understanding The Process | Pre-Foreclosure: What Homeowners Need to Know
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Understanding Pre-Foreclosure: What Homeowners Need to Know What Is Pre-Foreclosure? Pre-foreclosure is the first stage of the foreclosure process, occurring when a homeowner has missed several mortgage payments, and the lender issues a notice of default. This is a critical period when homeowners still have options to avoid losing their property. How Pre-Foreclosure Works Missed Mortgage Payments – Typically, after 3-6 months of non-payment, the lender will issue a formal notice of default (NOD) or lis pendens (legal notice of pending foreclosure). Grace Period for Resolution – Homeowners generally have a limited window to either catch up on payments, modify their loan, or sell the property before full foreclosure proceedings begin. Foreclosure Proceedings Begin – If no resolution is reached, the lender will proceed with foreclosure, which may result in an auction or repossession. Options for Homeowners Facing Pre-Foreclosure Reinstatement: Pay the missed payments along with p...