The pre foreclosure period is the period that exists from the day that your lender notifies you of his or her intention to foreclosure, and the date that is set for the public sale of your home. There are a couple of different options available for you to explore at this point, one of which is to pursue a short sale, one of which is a Deed in Lieu of foreclosure opportunity, and the final of which is to talk to someone regarding bankruptcy proceedings.

All three of these situations fit certain circumstances and situations, and not every will qualify. Find out more information about these strategies to see if any of the three is right for your unique circumstances.

• Short Selling - When it comes to real estate, a short sale occurs when the outstanding obligations against a property have become greater than what the property is capable of selling for. The short sale process is a way that homeowners can avoid having their homes foreclosed upon while still paying their loan off by settling with the mortgage lender.

The first step is to verify what the value is for your property, through a real estate broker or through your own market analysis of your property and the surrounding area. Next you will add up all of the costs associated with selling the property, and the amount that is owed against the property which will be the total of all of the loans currently against the property. You will need to do some calculating, subtracting the total amount owed against the property from the estimated sale proceeds. On a short sale, the number that you come up with will be a negative one.

Your next step is to directly contact each lender, talking to someone in the customer service department and explaining the situation to them in detail. They may either recommend you talk to a specific department, or they may put you in touch with the right supervisor or manager right away. The more authority this person has, the better.

Talk to your lender at this point to find out more about what is required for a short sale. Most but not all lenders will be more than willing to work with you, reducing how much money is left on your loan, or making other arrangements for you to follow.

Keep in mind that closing costs tend to include both title and escrow fees, and you may be responsible for these as the seller of the property but it depends on your county. You may also have to deal with notary fees, re conveyance fees, documentary fees, transfer fees, delivery fees, unpaid property taxes and attorney fees as well.

You also need to keep in mind if you do not use the assistance of a real estate broker when you sell the home, you can save the commission amount and apply it toward your loan instead. But if you feel more secure having a real estate broker, you should consider working with a discount broker who can market your property more cheaply.

• Deed in Lieu of Foreclosure - This is a deed instrument that allows the borrower to convey all of the interest in a piece of real estate property to the lender as a means of satisfying the loan in default and avoiding foreclosure proceedings in the process. This specific process offers a number of advantages both to the lender and to the borrower.

The principal advantage offered to the borrower is that he or she is immediately released from most or all of the debt associated with the loan that has been defaulted on. The borrower is also able to avoid the public notoriety that comes with a formal foreclosure. The lender can enjoy a large reduction in the amount of time and cost that would normally be associated with a home repossession, along with other advantages should the borrower subsequently file for bankruptcy proceedings.

In order for a borrower to even be considered for a deed in lieu of foreclosure, the amount of debt must be secured by the transfer of the real estate. Both parties in the transaction must enter in to the agreement in good faith and voluntarily. What this does, is it enacts the parol evidence rule, protecting the lender from subsequent claims that he or she acted in bad faith or otherwise pressured the borrower into this type of settlement.

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