Pre forclosures with High Equity

[Ron Stewart]

This may be an easy question to answer but what does it mean if a property is in Pre Forclosure status with 35% equity??

Thanks in advance.

[Paolo Agostinelli]

@Ron Stewart

Pre-foreclosure is one of the first steps that a bank takes in a foreclosure process. The bank has notified the property owner that they are in default of their loan (they are behind on and did not previous make monthly payments). For a property with a market value of $100,000, 35% equity means that 35%, or 35,000 has been payed off and that a mortgage amount of 65%, or $65,000 remains.