Hi everyone,
What’s the difference between properties that are in Preforeclosure vs. Foreclosure?
I live in california so do the foreclosure laws (using an equity purchase contract, 5 days to think about it, etc) apply for both preforeclosue and foreclosure properties?
In California and other deed of trust states, pre-foreclosure means before the notice of default (NOD) is recorded at the county recorders office so the homeowner is just delinquent in payments and not on any public list yet.
Once the notice of default is recorded, the property is officially in foreclosure and the whole world knows about it. The time as you probably know is 3 months, notice of trustee sale recorded, 21 days, trustee’s sale.
The winner of the auction, be it the beneficiary of the deed of trust or a private bidder, gets legal title to the property.
If the beneficiary is the winning bidder, since they opened bidding, it becomes an REO.
In mortgage states pre-pre-foreclosure means they’re delinquent on payments. Pre-foreclosure means after the lis pendens is filed. Foreclosure is after the auction. If the lender gets the property then it’s an REO.
I hope that helps.
Kawika-
That helped a lot. So basically the list of names that I get down at the County Recorders office is already in foreclosure and so I would have to abide by the foreclosure laws of california which is pretty confusing.
But thanks for your explanation. It was exactly what I needed.