What Does Pre-foreclosure Mean
With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process—especially the early stages. What does pre-foreclosure mean? Learn more about it below:
So what is a pre-foreclosure in Pittsburgh anyway?
Many homeowners across America and Pittsburgh are facing difficulties making their monthly mortgage payments.
When a homeowner misses 3–6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.” What does pre-foreclosure mean? It refers to the critical window of time before a foreclosure is finalized, offering a chance to resolve the debt or explore other solutions.
Banks and mortgage lenders typically provide three months for the homeowner to become current on payments. Of course, this number can vary by bank, lender policies, and the specific situation.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assume ownership, and evict the homeowner. Thankfully, during this critical stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to potentially prevent losing their home and protect their financial future.
Pre-foreclosure Options for Borrowers
If you’re behind on your mortgage payments, you may receive a “Notice of Default” from your lender. This document means you haven’t made payments for 90 to 180 days—but don’t panic. You still have options that can delay or even prevent foreclosure.
Pre-foreclosure is the period between receiving a notice of default and the official foreclosure sale. It’s a critical window of time where action can still be taken to save your home, explore alternatives, or protect your long-term financial future and credit standing.
Here are a few possible options for you:
Refinance Your Loan
If your mortgage is above water—meaning you have equity in your home—you may be able to refinance for a lower monthly payment and potentially secure better loan terms. Reach out to a trusted Pittsburgh mortgage broker, or contact us and we’ll connect you with a reputable one who understands your unique situation.
Sell Your Home Quickly
If refinancing isn’t possible, selling your home quickly to a reputable real estate investor in Pittsburgh—like us at We Buy Property—could be a smart move. We can often buy homes in as little as a week, pay in cash, cover closing costs, and help you avoid the stress of listing on the market. In some cases, we may even be able to work directly with your lender to reduce or completely eliminate your back payments, helping you move on faster and with less financial burden.
Short Sale
Another option is to request a short sale from your bank. This means selling your home for less than what you owe on the mortgage. The lender typically takes the loss, often using it as a tax write-off. However, in some cases, you may still be responsible for paying the difference if the home sells for significantly less than the outstanding loan balance, depending on your lender’s policies and state laws. What does pre-foreclosure mean? It’s the stage when you’re still able to explore options like a short sale before the home is officially foreclosed on.
Declare Bankruptcy
Bankruptcy may temporarily stop foreclosure and give you time to reorganize your finances. However, it can seriously affect your credit score and remain on your report for years, so it’s important to speak with a professional first.
The good news? Lenders know many homeowners are struggling, and most are willing to work with you—especially if you’re upfront and communicative.
Foreclosure can drop your credit score by 200–400 points and make it extremely difficult to secure any kind of financing for the next 5–7 years. If you’ve received a Notice of Default, act quickly, explore your options, and respond responsibly to protect your financial future.
And if working directly with your lender doesn’t lead to a solution—reach out to us. We may be able to help you find a way out, fast.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale. Submit your info on this website so we can evaluate your situation and see if we can assist in finding a solution.
- We can buy your Pittsburgh area house – We buy houses in Pittsburgh and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You can ask us questions, and we can provide you FREE guidance and resources so you can make a well-educated decision. This costs you nothing, there’s absolutely no pressure, no obligation—just free, valuable guidance without any catch or hidden fees.
If you’re in the pre-foreclosure stage, don’t panic—you’ve still got time to fix this situation and explore potential solutions.
Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for, explore your options in detail, or tap into our free foreclosure prevention resources and expert guidance to find the best solution.
