What is a pre-foreclosure sale?

A pre-foreclosure sale is a type of sale of a residential real estate property that takes place before the foreclosure process is completed in Washington State. In this type of sale, the homeowner is faced with the possibility of being unable to pay the outstanding mortgage balance and is looking to sell the property quickly, usually in order to avoid a full foreclosure. The pre-foreclosure sale is usually listed at a price that is lower than the actual market value of the property in order to attract buyers quickly. The process typically begins with the homeowner reaching out to a real estate agent or a bank to list the property in a pre-foreclosure sale. The pre-foreclosure sale process typically starts with a public notice in the newspaper, followed by the homeowner and potential buyers submitting bids on the property. The bank or lender who holds the mortgage often reviews the bids and chooses one to accept. As part of the process, the lender must still follow state foreclosure laws and provide the homeowner with sufficient notice before the home is sold. Once the pre-foreclosure sale is complete, the homeowner must still pay any outstanding debts owed on the property before the title is transferred to the buyer.

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What is a pre-foreclosure sale?

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