How to buy a pre-foreclosure
You buy a pre-foreclosure from the owner, before the foreclosure sale. Find the default notice, reach the owner with care, confirm what's owed on the home, and close before the sale date. If the owner owes more than the home is worth, the lender has to approve a short sale.
Updated November 2026. A plain-language guide, not legal advice.
- Who sells it
- The owner, who is behind on the loan
- Where you find it
- Default notices and sale notices in public records
- Can you inspect?
- Only if the owner lets you in
- Your deadline
- The foreclosure sale date
Step by step
The order most pre-foreclosures go in. Your county's rules and the deal in front of you can change it.
See pre-foreclosures on the map
Find the notice
In Nevada and Utah the lender records a notice of default when the loan falls behind. In Texas the first public notice is usually the notice of sale, posted at least 21 days ahead. Your county brief lists new ones each week.
Check the numbers before you call
Estimate the value from recent nearby sales, then look for every loan and lien on record. If the debts are higher than the value, a regular sale won't work without the lender's approval.
Reach the owner with care
A short letter or a knock works better than pressure. Say who you are and what you can offer. Many owners are getting dozens of letters, so be clear and honest.
Get the real payoff
With the owner's written permission, ask the lender for a payoff statement. Add back taxes, HOA dues and any other liens your title company finds.
Sign a clear contract and close before the sale
Put the price, the closing date and who pays what in writing. Use a title company, and close with time to spare before the sale date.
What can go wrong
Rules for buying from an owner in foreclosure
Some states have strict rules for these deals, with required contract language and cancellation rights. California's is one of the strictest (Cal. Civil Code 1695). Talk to a real estate attorney before you sign.
Liens you didn't see
Second loans, HOA liens, tax liens and judgments can all sit on the title. A title search before you sign is the only way to know.
The sale date can move
Lenders postpone sales, and owners sometimes catch up on the loan. Plan for the deal to fall through.
Who you need
Title company
Finds the liens that survive a sale before they become your problem.
Ask them: Can you run a title search before the auction date?
Real estate attorney
Reads auction terms, deeds and occupant rules in your state.
Ask them: What happens if someone is still living in the home after I buy it?
Lender with fast proof of funds
Auctions and bank sellers want proof you can close before they take you seriously.
Ask them: How fast can you send a proof-of-funds letter, and can you close in 10 days?
Experts we work with
Local agents who work distressed and off-market homes, and a lender to call before you bid. Ask through us and we'll introduce you by email.
Robert Meche
Broker and owner, SWR Group at Keller Williams
Collin County, TX, Dallas County, TX, Denton County, TX, Cooke County, TX
Buying somewhere else? Tell us the county and we'll point you to someone.
Recommended lender
Cole Boren
Branch Manager, CMG Home Loans
Cole has nearly three decades in mortgage lending. He helps buyers plan a purchase around the bigger picture: the cash they keep, the home they own now and the timing of the move.
- What you can qualify for now
- Buying before you sell
- Which loan fits the home you want
Cole Boren, NMLS #384591. CMG Home Loans, NMLS #1820. Equal Housing Opportunity. Licensing varies by state. Check his NMLS record.
Real Estate Intel recommends people we work with. You're free to use any agent or lender.
Questions buyers ask
What does pre-foreclosure mean?
The owner has fallen behind on the loan and the lender has started the foreclosure, but the home hasn't been sold at auction yet. The owner still owns it and can still sell it.
Is a pre-foreclosure listed for sale?
Usually not. Most pre-foreclosures are off-market, so you find them through public notices and reach the owner directly. Some owners do list with an agent, often as a short sale.
Can I get a good price on a pre-foreclosure?
Sometimes, when the owner needs a fast, certain sale. The price still has to work for the owner and cover what's owed, unless the lender approves a short sale.
Do I need an attorney to buy a pre-foreclosure?
It's a good idea. Some states regulate deals with owners in foreclosure, and an attorney can check the contract and the title work before you sign.
Get your county's new pre-foreclosures every week
New default notices, sale dates and homes that went back to the lender. Free, one email a week.