Pre-Foreclosure vs Foreclosure: What Investors Need to Know

split image showing a pre-foreclosure home and a foreclosure auction notice

Pre-foreclosure and foreclosure are often used as if they mean the same thing. They do not. For real estate investors, the difference matters because each stage has a different owner, process, risk profile, and acquisition strategy. In pre-foreclosure, the homeowner usually still owns the property. The lender has started or may soon start foreclosure because…

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