Do lenders finance pre-foreclosure?

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We want to do a house hack in the Bay Area. My partner and I are considering looking into pre-foreclosure homes. Will lenders finance this type of sale? Do we need to be all cash or bring in another investor? Any tips? Words of caution?

Status of foreclosure proceedings does not affect financing. As Wayne stated you may be on a shorter time frame to perform which varies based on the short sale approval letter and foreclosure time frames. Generally a short sale is approved for an Estimated. 30 days and extensions can be granted but are not guaranteed.