Definitions for "Preforeclosure sale"
A procedure in which the borrower is allowed to sell a mortgaged property for an amount less than that which is owed on it in order to avoid foreclosure.
A procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed on it to avoid a foreclosure. This sale fully satisfies the borrower's debt.
Settlement of a mortgage default where the borrower allows the mortgage insurance company or servicer to sell the property securing the mortgage rather than foreclose on it.