Find Preforeclosure Homes Near You

What Are Preforeclosures?

Preforeclosures are properties tied to mortgage loans that have entered default and are in the early stages of the foreclosure process. During this phase, the lender has not yet taken ownership, and the property has not gone to public auction.

What Happens During a Preforeclosure

In a preforeclosure, the homeowner still controls the property but is struggling to keep up with mortgage payments. Both the borrower and the lender often want to avoid a completed foreclosure, which is costly, time-consuming, and damaging to credit.

• Stage Early Foreclosure Phase

  The property has not yet been repossessed or auctioned.

• Ownership Homeowner Still in Possession

  The borrower remains the legal owner during preforeclosure.

• Status Loan in Default

  Missed payments have triggered lender action.

Why Preforeclosures Create Opportunities

Preforeclosures can present opportunities for first-time homebuyers, house flippers, and real estate investors. Because foreclosure has not been finalized, there is often flexibility to structure a solution that benefits all parties.

• Early Access

  Buyers can explore options before the property reaches auction.

• Negotiation Potential

  Solutions can be discussed directly with homeowners and lenders.

• Below-Market Pricing

  Properties may be acquired at prices lower than comparable listings.

How Short Sales Often Emerge From Preforeclosures

In many preforeclosure situations, buyers are able to present a reasonable offer that leads to a short sale. In a short sale, the lender agrees to accept less than the amount owed on the loan in order to resolve the debt.

This outcome helps the borrower avoid a completed foreclosure, reduces losses for the lender, and allows the buyer to purchase the property through a traditional closing rather than a public auction.

• Borrower Relief

  Short sales can prevent foreclosure from appearing on credit records.

• Lender Loss Mitigation

  Lenders avoid ownership, holding costs, and resale expenses.

• Buyer Advantage

  Purchases may include inspections and traditional financing.

Finding Preforeclosure Listings

Foreclosure.com helps buyers identify preforeclosure opportunities across . Our database includes preforeclosure and distressed properties spanning hundreds of counties nationwide.

Listings are updated continuously as new filings occur. If you do not see the right property today, you can sign up for our email alerts to receive updates as new opportunities become available.