Pre-foreclosure is the period of time between a lender has notified a borrower that his or her loan is in default status until the property is sold at a foreclosure auction.
Most lenders consider a mortgage or deed of trust loan with payments 90 days or more past due in a default status.
Once the lender notifies a borrower that his or her loan is in default status, the lender then instructs the attorney or trustee to initiate a foreclosure action against the borrower. A foreclosure lawsuit and notice of lis pendens or a notice of default is filed and recorded in the public records.
In judicial foreclosure actions, lenders file a lawsuit to foreclose on a mortgage or deed of trust loan that is in default and a notice of lis pendens. In non-Judicial foreclosure actions, lenders file a notice of default.
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