Pre-Foreclosure Lists: How to Find and Convert These Leads

Pre-foreclosure properties are one of those lead sources that a lot of investors know about but don't actually pursue. And honestly, that's a missed opportunity.

Here's the thing—these homeowners have received a notice of default and have limited time before they lose everything. They're not "thinking about selling" or "maybe interested." They're facing a real deadline. That makes them some of the highest-intent leads you'll find in real estate.

In this guide, I'm going to walk you through exactly what pre-foreclosures are, how to find these lists in any market, and the direct mail strategies that actually convert these leads into deals.

What is a Pre-Foreclosure?

A pre-foreclosure is that window of time between when a homeowner defaults on their mortgage and when the property actually goes to auction. It's the period where the owner still has options—and where investors can step in with solutions.

Let me break down the timeline so you can see how this works.

The Foreclosure Timeline

Federal law gives homeowners a 120-day minimum window before foreclosure proceedings can officially begin. That's your first opportunity to reach them.

Here's what the typical timeline looks like:

The entire process from first missed payment to auction typically takes 6-12 months in judicial foreclosure states, though it can move faster in non-judicial states.

Notice of Default vs Lis Pendens

These are the two main documents you'll see when pulling pre-foreclosure lists. Understanding the difference matters for your timing.

Notice of Default (NOD): This is the lender's formal notification that the borrower is behind on payments. It's essentially a warning shot—serious, but the owner still has time to act.

Lis Pendens: This is Latin for "litigation pending." It means the lender has filed a lawsuit to foreclose on the property. At this point, things are moving toward auction.

Both create motivated sellers, but the urgency level is different. NOD leads have more time; Lis Pendens leads are closer to the deadline.

Why Pre-Foreclosure Leads Are Valuable

I'll be honest—pre-foreclosure lists require a more thoughtful approach than some other motivated seller lists. But the payoff is worth it.

Motivated Seller Psychology

Put yourself in the homeowner's shoes for a second. They've just received a legal notice saying they could lose their home. They're stressed, probably embarrassed, and looking for a way out.

These aren't tire-kickers. They have real problems that need real solutions.

The psychology breaks down into a few key phases:

Denial (first few weeks): "I'll figure this out. This isn't really happening."

Panic (after notice): "What are my options? I need to do something now."

Action (pre-auction): "I need to sell this property before I lose everything."

Your direct mail should meet them in that second and third phase. That's when they're most receptive to solutions.

Equity Opportunities

Here's what makes pre-foreclosures particularly attractive—most of these homeowners actually have equity in their property.

Unlike short sales (where the owner is underwater), pre-foreclosure owners often just hit a rough patch:

• Job loss
• Medical emergency
• Divorce
• Death in the family

They might owe $200,000 on a house worth $280,000. They can't afford the payments anymore, but there's real value there. A quick sale lets them walk away with cash instead of losing everything.

That's a win-win situation. They get out from under the problem with money in their pocket. You get a property at a discount.

The Numbers Tell the Story

Foreclosure activity has been climbing steadily. In Q3 2025 alone, there were 72,317 foreclosure starts—up 16% year-over-year. Total filings hit 101,513 that quarter, up 17%.

Looking ahead to 2026, analysts are forecasting 350,000+ total foreclosure filings if economic pressures continue. That's a significant pool of motivated sellers.

The markets with the most activity right now include Texas, Florida, California, Illinois, and New Jersey. If you're investing in any of these states, pre-foreclosure lists should absolutely be part of your lead generation strategy.

How to Find Pre-Foreclosure Lists

Alright, let's get into the practical stuff. There are three main ways to source pre-foreclosure data.

County Records (Free)

Every foreclosure has to be recorded with the county, which means this information is public record. You can access it directly—often for free.

Here's how:

1. Find your county recorder or clerk's website - Search for "[Your County] recorder of deeds" or "county clerk foreclosure"
2. Look for NOD filings or Lis Pendens records - These are usually searchable by date range
3. Download or request the data - Some counties offer bulk downloads; others require visiting in person

What you'll typically get:

• Property address
• Owner name
• Lender name
• Recording date
• Document type (NOD, Lis Pendens, etc.)

Pro tip: Many counties use systems like Landex or Tapestry that make searching easier. Call the recorder's office and ask what system they use—they can usually point you to the right resource.

The downside is this takes time, especially if you're working multiple counties. You're also only getting the raw filing data, not contact information or property details.

List Providers (Paid)

If you want to skip the manual work, data providers aggregate this information across thousands of counties and add valuable data points.

Popular options include:

• PropStream - Comprehensive platform with foreclosure filters
• BatchLeads - Good for skip tracing integration
• ATTOM Data - Raw data for bulk operations
• ForeclosureListings.com - Specialized foreclosure data

These services typically cost $0.05-0.20 per record, but they save significant time and often include:

• Owner mailing address (often different from property)
• Phone numbers
• Email addresses
• Property value estimates
• Mortgage information
• Days in default

For most investors doing consistent direct mail, the time savings more than justify the cost.

Data Services with Enhanced Information

Some newer platforms specialize in distressed property data with deeper insights:

• Duration in default - How long has this been going on?
• Estimated equity - Is there enough meat on the bone?
• Lender information - Who holds the note?
• Previous sale history - What did they pay?

These additional data points help you prioritize your list and craft more targeted messaging.

Ethical Considerations

I want to address this directly because it matters. Pre-foreclosure outreach has gotten a bad reputation in some circles, and honestly, some of it is deserved.

Approaching Distressed Sellers

These homeowners are going through one of the most stressful experiences of their lives. Your approach should reflect that.

What ethical outreach looks like:

• Transparent about who you are and what you do
• Honest about what you can offer
• Respectful of their situation
• No pressure tactics or manufactured urgency
• Fair offers that leave them better off than foreclosure

What predatory outreach looks like:

• Misleading or deceptive language ("We're from the bank...")
• Exploiting fear without offering real solutions
• Pressuring quick decisions without proper information
• Offers that are insultingly low
• Making promises you can't keep

The reality is that legitimate investors provide a valuable service. You're offering people a way out of a terrible situation with cash in their pocket. That's a good thing—when done right.

What to Avoid

Stay away from:

• Scare tactics - They're already scared. Don't make it worse.
• Fake urgency - The foreclosure timeline provides real urgency. You don't need to manufacture more.
• Pretending to be someone you're not - Always be clear that you're an investor looking to buy.
• Targeting the most vulnerable - Elderly homeowners or those with clear cognitive issues need an advocate, not a buyer.

Build your reputation on being the investor who treats people fairly. That's better for your deals and better for the industry.

Direct Mail to Pre-Foreclosure Owners

Direct mail remains one of the most effective channels for reaching pre-foreclosure owners. Here's how to do it right.

Timing Your Campaign

Timing is everything with pre-foreclosure leads. Mail too early, and they're still in denial. Mail too late, and they've already lost the property or committed to another solution.

Optimal timing windows:

For the best results, start your sequence within 30 days of the NOD filing and continue touches through the process. Most investors only mail once and wonder why they don't get responses. Pre-foreclosure owners need multiple touchpoints.

Messaging That Converts

Your message should acknowledge their situation directly. They know they're in foreclosure—pretending otherwise is condescending.

Effective messaging elements:

1. Acknowledge the situation - Show you understand what they're facing
2. Offer a specific solution - Not vague "I buy houses" language
3. Explain the benefit to them - Cash in their pocket, avoid credit damage, move on their timeline
4. Establish credibility - How many properties you've bought, years in business, testimonials
5. Clear call to action - What should they do next?

Sample opening:

"I'm reaching out because I noticed a Notice of Default was filed on your property at [Address]. I work with homeowners in this situation every week, and I wanted you to know there are options before the foreclosure process moves forward. You could walk away with cash in your pocket instead of losing everything at auction..."

Follow-Up Sequences

One mailer won't cut it. Here's a sequence that works:

Touch 1 (Day 1): Personal letter introducing yourself, acknowledging their situation, offering to help. Use a handwritten font or actual handwriting if possible.

Touch 2 (Day 10): Postcard with a different angle—maybe a testimonial from someone you helped in a similar situation, or a case study showing outcomes.

Touch 3 (Day 21): Second letter, slightly more direct about the timeline. Include your best contact methods.

Touch 4 (Day 35): Final postcard if auction is approaching. Clear deadline language: "The auction is scheduled for [Date]. There's still time to explore your options."

Touch 5 (If no auction date yet): Continue monthly touches until the situation resolves.

The key is staying top of mind without being obnoxious. When they're ready to act, you want to be the investor they call.

Pre-Foreclosure Deal Structures

Once you connect with a motivated pre-foreclosure owner, you have several options for structuring the deal.

Wholesale Assignment

The most common approach for newer investors. You get the property under contract at a discount, then assign that contract to an end buyer for a fee.

Typical structure:

• Contract price: 60-70% of ARV
• Assignment fee: $5,000-$20,000
• Timeline: 30 days or less

The owner gets a quick sale. You get paid without needing to close. The end buyer gets a deal.

Direct Purchase

If you're buying to flip or hold, you're purchasing directly from the owner.

Considerations:

• Title search is critical (foreclosure creates additional title issues)
• Verify all liens and encumbrances
• Factor in back payments, penalties, and fees
• Account for any repairs needed

The advantage is you control the entire process and capture all the upside.

Subject-To Deals

In some pre-foreclosure situations, taking over the existing mortgage "subject to" the existing financing can work.

When this makes sense:

• Owner has a low interest rate
• Significant equity exists
• Monthly payment is manageable
• Seller is motivated to transfer the problem

Caution: Subject-to deals require proper legal structure and carry due-on-sale risks. Make sure you understand the mechanics before pursuing this route.

Short Sale (If Underwater)

If the owner owes more than the property is worth, you may need to negotiate a short sale with the lender.

Timeline: 60-120 days for lender approval Complexity: Higher—requires bank negotiation Opportunity: Often significant discounts if you're patient

Short sales have slowed compared to the 2008-2012 era, but they still exist in markets where values have declined.

Frequently Asked Questions

How do I know if a property is in pre-foreclosure?

Check your county recorder's office for Notice of Default (NOD) or Lis Pendens filings. You can also use data providers like PropStream or BatchLeads that aggregate this information. The filing creates a public record that's searchable by property address or owner name.

What's the best time to contact pre-foreclosure homeowners?

The optimal window is 30-60 days after the Notice of Default is filed. This gives the owner enough time to move past initial denial while still having options before the process advances. For Lis Pendens filings, contact sooner—the timeline is more compressed.

Are pre-foreclosure lists legal to use for marketing?

Yes. Foreclosure filings are public records, and using them for marketing purposes is legal in all 50 states. However, some states have specific regulations about how you can contact distressed homeowners. Check your state's real estate marketing laws and avoid practices that could be considered predatory.

How much competition is there for pre-foreclosure leads?

Competition varies by market, but pre-foreclosures generally have less competition than other motivated seller lists because they require more thoughtful outreach. Many investors default to probate or absentee owner lists, leaving pre-foreclosures undertargeted.

Can homeowners stop foreclosure after I contact them?

Yes, and this happens more often than you'd think. Some homeowners cure their default after receiving your letter—which is a good outcome even if you don't get the deal. Others find alternative financing, negotiate with their lender, or pursue other options. This is why multiple touches are important—situations change.

What response rate should I expect from pre-foreclosure direct mail?

With proper targeting and timing, expect 3-5% response rates from pre-foreclosure lists. This is higher than generic motivated seller lists (1-2%) because the motivation level is much higher. Response rates increase significantly closer to auction dates.

Use our free ROAS calculator to see how these response rates translate into ROI for your campaigns. And if you're testing different mail pieces, our sample size calculator can help you determine the minimum volume needed for statistically valid results.

How do I find out the auction date for a specific property?

Auction dates are published by the county—typically in the legal notices section of a local newspaper and on the county's website. Most data providers also include auction dates when available. For properties with NOD filings but no scheduled auction, the timeline depends on how fast the lender moves through the process.

Start Converting Pre-Foreclosure Leads

Pre-foreclosure lists represent one of the highest-intent lead sources available to real estate investors. These aren't casual sellers—they're people facing real deadlines who need solutions.

The key is reaching them at the right time with the right message. Done correctly, you're providing a genuine service: helping homeowners walk away with cash instead of losing everything at auction.

If you're ready to start targeting pre-foreclosure properties with direct mail, explore our automated campaigns built specifically for real estate investors. We handle the printing, mailing, and tracking so you can focus on talking to motivated sellers and closing deals.

Questions about building your pre-foreclosure campaign? Connect with our team—we help investors launch effective campaigns every day.