Types of Foreclosures
There are 3 types of foreclosures based on where the property lies in the foreclosure process: pre-foreclosure, foreclosure and post-foreclosure.
- Pre-foreclosure:
At this stage it is up to the homeowner to stall the potential damage to their credit rating by finding a seller to takeover their property via a short sale.
- Foreclosure Stage:
The Country Clerk’s office can determine a potential property that is about to enter foreclosure. You will be able to check out the notices of default are filed and a place to find pending foreclosure sales. In some cases, you can request that your email address be placed on an advance notice list or a list of pending defaults. This stage is different from state to state, and will change as far as what is judicial or non-judicial for the foreclosure process.
- Post-Foreclosure:
At this stage the lender has taken control of the property and is in the possession of the lender (called an REO) or possibly in th ehands of a new owner or an investor that was able to purchase the property in auction.
Typically a lender would like to move the REO off the books since it will be an obvious sign that the lender made a poor lending decision.
