Preforeclosure is the first step in the foreclosure process, which occurs when a homeowner misses several mortgage payments, prompting the lender to issue a notice of default. It is a legal notice that means the homeowner is in jeopardy of the lender foreclosing on their home if they don’t quickly work to resolve the matter. During preforeclosure, the homeowner has an opportunity to work with the lender to either keep the home or negotiate a short sale. The preforeclosure process typically begins when a homeowner misses three months of mortgage payments. The preforeclosure period typically marks the borrowers last opportunity to take action to prevent the loss of their property and avoid the serious, long-lasting damage to their credit history that foreclosure can bring. Homeowners in preforeclosure typically have a few options to avoid foreclosure, including paying what’s owed, working with their lender to modify the mortgage to reduce their monthly payment, or settling the debt through a short sale or deed-in-lieu-of-foreclosure. Foreclosure means the home can now be put up for sale by the lender, and an eviction notice will be served if the homeowner hasn’t vacated the property.