Many people aren't aware of the various steps that go into the foreclosure process, some of which are set up to let the homeowner fix his/her late payments and keep the house. One step like this is pre foreclosure. This initial step in a full foreclosure is a predetermined period of time, typically three to six months, allowing the payments to be made up and possibly prevent full foreclosure. During the pre foreclosure stage, the bank or lender is required to notify the homeowner and typically will work with them to try and find a payment plan that the owner can manage while still satisfying the lending institution.



Although lenders have a reputation for not wanting to work with home owners who have defaulted, initiating a foreclosure process is expensive not to mention the lender rarely gets their full investment or loan amount in return. When the economy is not good they may have to sell the house at a loss and incur additional loss on the foreclosure. It becomes a high priority for the lender to diligently work with a delinquent homeowner during the pre foreclosure period, even if the lender has to offer new refinancing terms or renegotiate a payment schedule spanning a longer period. You should start working with the lender well before the end of the pre-foreclosure grace period.

The state regulations decide the exact time for a pre foreclosure period and therefore you get to know how much time you have up your sleeve to check with your real estate agent, real estate attorney or lending institution on negotiating a settlement before the full foreclosure can be started. It is very important to know the timeframe of the foreclosure period because during this time the lender is not able to start any type of foreclosure proceedings.

The mortgage lender can not legally evict the homeowner out of or off the property during the pre foreclosure period. If once the pre-foreclosure period is over and the lender and homeowner have not been able to reach a settlement option for the deficit mortgage amount, the lender is entitled to proceed with foreclosure and taking over the property. If the lender is able to reach an agreement with the homeowner, they will stop the foreclosure process and put into place the agreed method of either a repayment plan, refinancing, or even an extension of the mortgage. It is possible for a property to go through this process more than once but lenders are usually not willing to take up such homeowners? job where default becomes a pattern.