Most people have heard of foreclosure, but fewer realize there’s an earlier stage called pre-foreclosure. This occurs when a homeowner has fallen behind on mortgage payments and the lender has begun the default process, but the property has not yet been foreclosed on.

If you’re considering selling during pre-foreclosure, acting quickly is important. You may still have options to sell on the open market or work with a cash buyer before the foreclosure process advances. Understanding your timeline, remaining loan balance, and available selling options can help you protect as much equity as possible and avoid a more stressful outcome.

Let’s take a closer look at what pre-foreclosure means and what options may be available in your situation