Pre Forclosure Lists
A pre forclosure list is a list which can be used to find out which properties in your area or possibly in an area that you are interested finding pre forclosure homes which might be going into foreclosure and be are available for purchase. It is important to keep in mind that houses or properties on a pre forclosure list might not end up in foreclosure, especially if the owner either refinances the home or works with a lending company to set up a repayment schedule plan that will take of the in the rear payments.
A home will be listed in a pre foreclosure list by several different directions, depending on the type of financing and the various real estate laws within a state. Typically, the lists are developed by the local courts through public notices, which are found through court filings by the lender. In some states where judicial foreclosures are used, the bank or mortgage company has to file a notice of Lis Pendens with the court This is the first signal that a home or property is going to be forclosed on. The homeowner is allows to also present their information, during the Lis Pendens proceeding. The house or property is considered in pre foreclosure once this document is filed. The lender and borrower may resolve the issue of the debt prior to the court hearing, at which time the Lis Pendens would be canceled and the house would be removed from the pre forclosure list.
The other option for a pre foreclosure is called a “Non-Judicial Foreclosure”. This type of foreclosure will still establish a legal process, it’s just handled differently. What happens is, the lender will file a “Notice of Default” to notify the homeowner that the house or property is in pre forclosure state. The owner then has a set amount of time to get in touch with the financial institution that holds his/her loan in order to develop a plan that will address the missed payments. Once that time has passed, the lender will sell the property through a public auction. The present owner may participate in the auction, but it always goes to the highest bidder and there may be others who are bidding on the home too.
While a pre forclosure list does not necessarily mean that the property will go to absoute foreclosure, it can be a useful tool in determining which homes or properties might be available for sale during the pre forclosure period. There are many different websites offering both foreclosure and pre forclosure lists, either state by state, county, city or broader area searches. These sites may be free and open to the public or they might be sites that require a paid membership to view the pre forclosure list area. There are also several agencies that specialize in locating pre forclosures. Foreclosure.com is one company that lists information for specific categories of properties that buyers or investors may be interested in purchasing.