Preforeclosure Vs Short Sale

What is the difference between a short sale and a preforeclosure?

thank you!

-J

Comments(4)

  • jjetts416th January, 2004

    a pre-foreclosure also known as lis pendens is when the person is about to go into foreclosure. a short sale is when someone negotiates with the bank on a lis pendens a agreed upon price to get the house out of lis pendens and purchase it.

  • JonDoe16th January, 2004

    so is a 'preforeclosure' a form of a deal? or is it just a condition? If it's a type of deal, what's the deal?

    Thanks again.

    -J

  • TheShortSalePro16th January, 2004

    'Preforeclosure' is an indication as to the status of the mortgage loan, while a 'short sale' is a transaction.

    A 'short sale' occurs when a foreclosing lienholder agrees to facilitate a sale whose anticipated proceeds would not be enough to payoff all liens by accepting less than they are contractually due

    For the purpose of this post, let's agree that a loan in 'preforeclosure' is the time between the Borrower's first missed mortgage loan payment, and the forced, public sale of the property.

    Short Sales generally occur when a loan is in the preforeclosure stage...

    A lis pendens (suit pending) is a recorded document filed by the mortgagee's attorney that alerts the public that the subject property is subject to litigation. [ Edited by TheShortSalePro on Date 01/16/2004 ]

  • JonDoe16th January, 2004

    thanks for the clarification!

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