Pre-Foreclosure Homes: What They Are, Where to Find Them, and How to Buy One
By Rent to Own Guide · Published · How we research
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Short answer
For a buyer, that creates a window: you can sometimes make a deal with the owner before the home goes to auction, before the bank owns it, and before a crowd of bidders shows up. It is also a stage with real deadlines, real risks, and a real person on the other side of the table. This page is the short version. Our four guides go deeper.
Pre-foreclosure in 30 seconds
- What it is: the stretch between the lender starting the formal process and the foreclosure sale. What counts as the start depends on the state: a court case in some states, a recorded or mailed notice in others.
- Who owns the home: the homeowner, until a sale happens.
- How long it lasts: anywhere from a few weeks of public notice to more than a year, depending on the state and on delays.
- How you can buy: agree on a sale with the owner, buy through a short sale the lender approves, or wait and bid at the auction.
- Biggest risks: other liens, title problems, no chance to look inside, and deals that fall through when the owner catches up.
Pre-foreclosure, auction, short sale, bank-owned: four different things
Listing sites often group these together. They are not the same, and they are bought in different ways.
| Term | Who owns the home | How a buyer gets it |
|---|---|---|
| Pre-foreclosure | The homeowner | A deal with the owner, if the owner wants to sell |
| Short sale | The homeowner | A sale for less than the loan balance, which the lender must approve |
| Foreclosure auction | The homeowner, until the sale | The winning bid at the sale, usually paid in cash or certified funds |
| Bank-owned (REO) | The lender | A purchase from the bank, usually listed through an agent |
The full comparison is in pre-foreclosure vs foreclosure.
Where pre-foreclosure lists come from
Pre-foreclosure lists are built from public records. In states where foreclosure goes through the courts, the lender files a lawsuit and often records a lis pendens (“suit pending”). In other states the lender follows steps set by state law without a court case. California, for example, requires a notice of default recorded with the county (Cal. Civ. Code § 2924). Texas instead requires a notice of default mailed to the owner, then a notice of sale filed with the county clerk at least 21 days before the sale (Tex. Prop. Code § 51.002).
Listing services collect those records and match them to addresses. Because each service decides which records to count, two lists for the same county can differ. Three cautions before you rely on any of them:
- Lists go stale. The owner may have caught up or sold since the notice was filed.
- Records can be incomplete. A listing may be missing the loan balance, the lender, or other liens.
- A record is not an offer. It shows a lender took a legal step. It doesn't show that the home is for sale.
Foreclosure.com is one listing service; its national pre-foreclosure search is a place to start. Our guide on how to find pre-foreclosure homes covers county records, free and paid options, and listing pages by area.
Why buyers look, and what can go wrong
Fewer people may know a home is in pre-foreclosure, you can talk with the owner instead of bidding against strangers, and you may have weeks rather than minutes to check the title. An owner who sells for more than they owe can keep the difference. But the owner can catch up and end your deal, other debts can be attached to the home, you often can't see inside, and a short sale can take months to approve. The step-by-step process is in how to buy a pre-foreclosure home.
If the home in foreclosure is yours
You likely have more options than you think. HUD points homeowners to free help from HUD-approved housing counselors: call (800) 569-4287 to find one, or the Homeowners HOPE Hotline at (888) 995-HOPE (HUD). Be careful with anyone who asks for money up front to “save” your home. Federal rules bar most mortgage relief companies from charging before you have a written offer from your lender that you accept (12 CFR § 1015.5). Our guide to what a homeowner can do lists the main options.
Not ready to buy? Rent to own is a different path
If you like the idea of owning but your credit or savings aren't there yet, a rent-to-own agreement is another route, with its own costs and risks. You will still need to qualify for a mortgage when the option comes due. Start with how rent to own works, then read how to find and check rent-to-own homes.