Pre-forclosure and Short Sale is one in the same.
Pre-foreclosure or Short sale is the period between the mortgage Lender’s notice to the Borrowers of their default on the mortgage payments and the sale that finalizes the transfer of title to the property to the Lender. from preforeclosure.com
- When a seller is in financial distress and a lender approves a sale even though the property will sell for a price less than what is owed to the lender.
- Short sale and Pre-foreclosure sale are synonymous – Pre-foreclosure (PFS for short) is more correct. (As Flight Attendant is more correct than Stewardess) Source: Pre-forelcosure Education
For more information about pre-forclosures.short sales vist the US Department of Housing and Urban Development (HUD)