200012 Lecture Notes - Lecture 13: Property Law, Public Auction, Institute For Operations Research And The Management Sciences
3 May 2019
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Document Summary
Pre-foreclosure refers to the legal situation a property is in during the early stages of being repossessed. Reaching pre- foreclosure status begins when the lender files a default notice on the property, which informs the property owner that the lender will pursue legal action toward foreclosure if the debt isn"t paid. When a homebuyer takes out a loan to purchase a property, he signs a contract with the lending institution to repay the loan in monthly installments. These monthly installments cover a portion of the principal and interest payments on the mortgage. He"s said to be in default if he fails to make payments for at least three months. Pre-foreclosure cannot begin until he is at least three months delinquent. He will receive a notice of default, which will also be made a matter of public record. The pre-foreclosure period can last anywhere from three to 10 months.
