What is a pre-foreclosure sale?

A pre-foreclosure sale is an arrangement that takes place when a homeowner in Virginia is unable to pay their mortgage payments, and the lender has initiated the foreclosure process. The pre-foreclosure sale is an agreement between the borrower and the lender, where the lender agrees to allow the borrower to sell their property before the foreclosure process is completed. This allows the borrower to pay off their mortgage and avoid a foreclosure, while the lender can recover some of the money they’re owed. The homeowner will typically list their home for sale and try to get the best price possible from potential buyers. If a buyer is found, the mortgage is paid off, and the lender and borrower sign a deed of trust, transferring ownership of the property to the new owner. The lender is then paid any remaining outstanding debt owed on the property, and the borrower is cleared of their mortgage debt. Pre-foreclosure sales have become increasingly popular in Virginia, as they provide a way for both homeowners and lenders to settle a mortgage debt in a timely manner.

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What is a pre-foreclosure sale?

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