Real Estate -  Foreclosure pre sale

Home owner whose properties are foreclosed by banks will have
their credit rating downgraded as a result of it. In future, financial
institution will be cautious when dealing with them; they will not be
able to obtain financing for future real estate purchases nor for
other purposes. In order to avoid such a situation distressed home
owners are willing to sell their property at below market value, if that
action would stuff off a bank foreclosure; it will save their credit
standing.

Banks on the other hand will be willing to delay any foreclosure, as
foreclosure would mean unnecessary work and expenses that may
impinged upon the amount they can recover. There will be legal,
court, auction and other charges to bear. An outright sale by the
distressed home owner to a willing buyer is clean and hassle free.   

Pre foreclosure transactions can be found in the classified section,
however the best source for such information will still be the banks
themselves. Pre foreclosure sale procedure is similar to a purchase
from the secondary market.