Pre-Foreclosure: What It Is and How to Stop It Before Losing Your Home

If you’ve received a pre-foreclosure notice, you might feel overwhelmed and unsure of what to do next. Pre-foreclosure doesn’t mean you’ve lost your home yet—but it does mean action is needed to avoid foreclosure and its serious consequences.  

At MG Property Bros, we help homeowners navigate pre-foreclosure by offering fast, fair cash solutions to avoid losing their property. In this guide, we’ll break down what pre-foreclosure is, how it works, and what options you have.  

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What Is Pre-Foreclosure?

Pre-foreclosure is the early stage of foreclosure, where a homeowner has missed multiple mortgage payments and the lender issues a notice of default or lis pendens (lawsuit pending). At this point, you still own your home, but the lender is preparing to take legal action if the debt isn’t resolved.  

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Key Points About Pre-Foreclosure:

The lender warns the homeowner about missed payments.  

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The homeowner can still catch up on payments or sell the home.  

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If unresolved, the lender can repossess and auction the home.  

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How Does Pre-Foreclosure Work? 

The pre-foreclosure process generally follows these steps:  

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1. Missed Mortgage Payments

- After 90+ days of missed payments, the lender considers the loan delinquent.  

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- You may receive warnings before legal action starts.  

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2. Notice of Default (NOD) or Lis Pendens Filed

- The lender files a public notice stating the homeowner has fallen behind.  

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- This begins the pre-foreclosure phase, lasting 3-6 months or more.  

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3. Options to Avoid Foreclosure

- You can catch up on payments, negotiate with the lender, or sell the home.  

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- If the issue isn’t resolved, the lender may proceed with foreclosure.

4. Foreclosure Auction or Bank Repossession

- If no resolution is reached, the lender auctions the home or takes ownership.

- A foreclosure stays on your credit report for up to 7 years.  

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How to Stop Pre-Foreclosure: Your Best Options  

If you’re in pre-foreclosure, you still have time to act. Here are your top options:  

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1. Catch Up on Payments

If possible, work with your lender to bring your loan current. Some lenders offer  

Loan modification (adjusting terms to make payments more manageable).  

Forbearance (temporary pause or reduction of payments).

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2. Sell Your Home Before Foreclosure

Selling the home allows you to pay off your debt and avoid foreclosure’s impact on your credit.

You can:  

List it on the market (may take time, agent fees apply).  

Sell directly to a cash buyer like MG Property Bros for a fast, hassle-free closing.  

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3. Short Sale

If you owe more than the home’s value, you may qualify for a short sale, where the lender agrees to accept less than the full amount owed.  

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4. Deed in Lieu of Foreclosure

This involves voluntarily transferring home ownership to the lender in exchange for cancellation of the mortgage debt.  

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Why Selling to MG Property Bros Is the Fastest Solution 

If you’re in pre-foreclosure and need a quick, stress-free way to sell, we can help.  

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Fast Cash Offer – We buy houses as-is, no repairs needed.

No Realtor Fees – Keep 100% of your cash offer.  

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Close in 7 Days or on Your Timeline – Avoid foreclosure quickly.  

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No Stress, No Waiting – We handle all paperwork and closing costs.  

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Facing Pre-Foreclosure? We Can Help Today!  

If you’re at risk of losing your home, don’t wait. Selling now can protect your credit and give you financial freedom.  

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