Basically, pre-foreclosure is like a grace period. The homeowner is being warned that they're in default and need to do something about it, but at this point, the lender is unable to claim back the property and sell it to recoup their costs. The length of the grace period varies, as it's determined by state laws. Some states allow the grace period to last for as long as 6 months, but many states have shorter periods.THE VILLAGES FL. WEBSITE WWW.NANCYSHEEHAN
Yes you can obtain a conventional with less than twenty percent.The main reason to put down twenty percent is to avoid paying. PMI, which is very expensive. I would calculate the difference of not paying PMI as to what retune you will receive with that money.