Can I Wholesale a PRE FORECLOSURE?

Question: “Can I Wholesale a PRE FORECLOSURE?”

First of all what is a Pre Foreclosure for those of you that may not know.

What is Foreclosure?

Foreclosure is when a bank comes after a property that was basically signed into contract as a collateral for a mortgage loan before.

It could be a mortgage loan, property taxes or a lien against a property, it could be a mechanical lien.

Mechanical Lien is basically a lien that was put on the property by a contractor.

Somebody finished worked on your house, you signed a contract with them and you couldn’t make the payment,

…they can slap a mechanical lien on your property and yes, in many states, they can legally foreclose on your property.

But what we just have to pay for other senior liens beyond that.

So the most senior lien is usually the property taxes.


To the local county or city it depends on what state you live in.

The point I’m making there is this, 

Foreclosure is when you owe somebody money and they exercise their right to take the property away from you. 

Pre Foreclosure is when you stop payment or mortgage payment.

If there are payment attached to a property the moment you stopped and they record another piece of document,

…in many states they call it the  Lis Pendens.

Which means pending lawsuit or some people call it Notice of Default.

When they record that against your property, that shows a public record and is now called pre foreclosure. 

Now that you know what that is, 

To answer the question “Can I Wholesale Pre Foreclosure?

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Yes you can because pre foreclosure is still owned by the owner of the property.

The owner of the property still owns the property.

It’s just a notice of default  that’s recorded at the county government record house to say “hey the public knows, this person owes me money and I have intentions to foreclose”.

Sometimes it comes with an intent to foreclose depending on what state, that’s another document and sometimes it’s all together.

Basically it’s an intention, in “real English”, it’s an intention to foreclose on the property meaning to take the property away from the owner due to lack of payment. 

Due to a default on a payment that was arranged before. 

So can I wholesale Pre Forclosure?

Everything stays the same way. 

The only thing is that, whatever they owe on the property just like it was normal, they have to pay.   

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And usually when there is a pre foreclosure that means they’ve stopped payment possibly up to 90 days,

…so whatever the areas and all the fees that come with the part that they stopped payment, somebody has to pay for that.

If it still makes sense in the deal, yes absolutely you can wholesale pre foreclosure.

But as far as there is anything extra that you need to know, no not really,

…except that you can actually use that as your negotiation tactics.

So if the owner says “it’s in pre foreclosure, they are going to take away the property”,

…you could say “okay they don’t have to take away the property, let me buy the property and you can move on with your life”.

And they may say “Yes”


 So that’s the answer to that.

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