What is the difference between Active Foreclosure and Preforeclosure?

Active Foreclosures

Active Foreclosures refers to properties that are: -

  • Considered to be in Default because a Notice of Default (NOD) or Lis Pendens has been issued
  • Listed for Auction because a Notice of Sale(NOS) or Notice of Trustee Sale (NTS) has been issued
  • Considered Real Estate Owned (REO) because the property was passed in at auction and transferred to the lender

If an Arms Length transaction occurs, i.e. the property transfers from one owner to another after any of the above have been issued, the property is assumed to be no longer in foreclosure.

Preforeclosure

Preforeclosure refers to properties that have had one of the following issued: -

  • Notice of Default (NOD) or Lis Pendens
  • Notice of Sale(NOS) or Notice of Trustee Sale (NTS)

Preforeclosure provides a historical record of all such transactions that have been issued against a property

It is PREforeclosure because it does not include any transaction that take place at or following the foreclosure auction such as REOs.

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