Pre-foreclosure refers to the early stages of
foreclosure (when a borrower is unable to pay an outstanding mortgage amount). Once the borrower has defaulted on the loan amount, the lender issues a
notice of default, or NOD, on the property. This informs the borrower that the lender will take legal action if the outstanding loan amount is not paid.
Once an NOD is filed, a borrower has two options: repay the loan amount or sell the property before
At this point the borrower has the opportunity to begin repaying the loan amount or sell the property before it goes into foreclosure.
