What is a preforeclosure? Are there different steps in a prop becoming a foreclosure? How can you find preforeclosures and can you get them before other investors get them at foreclosure? Mike

Howdy Dynomac:

Once the owner is late they are in default and this may be considered preforeclosure. This will last all the way until minutes before the sale. Once it is sold it is now considered a foreclosure or REO property by the bank. (Real Estate Owned) I have actually stopped a foreclosure the day of the sale by meeting the trustee at the courthouse and paying the back payments. This has to be worked out beforehand with the lender.

See my reply to wwrentals.