Pre-foreclosure is a period prior to foreclosure, where a homeowner has a certain amount of time to either pay the default or sell the property. Pre-foreclosure is always followed by foreclosure unless the homeowner rectifies the problem. During pre-foreclosure a foreclosure can be delayed by a bankruptcy filing or a forebearance agreement, while a foreclosure can be stopped by a transfer of deed in lieu of foreclosure or payment of all outstanding principal, interest, penalties and often attorneys’ fees.
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