Buying South Carolina Foreclosures or Short Sales – SC Homes and Land, LLC
OUR FEATURED PROPERTIES
About SC Homes and Land
Your Northern Greenville and Spartanburg County Experts!
We proudly serve Northern Greenville and Spartanburg counties. Let us help you discover the best of rural living in Campobello, SC, The Cliffs Communities in SC, Landrum, Spartanburg, Greer, Travelers Rest and the Boiling Springs and Lake Bowen areaS! From equestrian properties, to mountain views and lakeside living, we’ll help you find the home and lifestyle of your dreams!
We can also show you the best of Upstate urban living in our vibrant cities. Come home to South Carolina – it’s all here for you! Contact SC Homes and Land today for more information - 864.468.1111!
Need to talk? Contact us to get a quick reply to your questions!
Buying South Carolina Foreclosures or Short Sales – SC Homes and Land, LLC.
Interested in buying foreclosed homes or short sales? SC Homes and Land can help you find distressed property opportunities in South Carolina! Here’s some information to help you get started.
South Carolina is a “judicial foreclosure” state. This means that when a property owner defaults on their mortgage, the lender must go through the court to repossess the property. Basically, the lender files a lawsuit against the homeowner in order to obtain a judgement.
The homeowner has an opportunity to respond to the judgment and pay the amount owed. Failure to pay results in the court allowing the home to be sold in a public auction, which is held by a court representative or sheriff. Hence the term “Sheriff’s Sale”. The entire process can take about six months, if the foreclosure is not contested by the property owner.
In many cases, the lender is not only the seller at auction, but also the winning bidder. The lender then takes ownership of the property. Homes that have gone through this process are known as “bank-owned properties” or “REO properties” which stands for “real estate owned” by bank.
Lenders typically put foreclosed properties on the market through a real estate agency. While the lender strives to collect fair market value, these properties are often discounted for a quick sale.
Foreclosed properties are often purchased by investors who pay cash and require no contingencies. These investors may fix and “flip” the properties back on the market, or repair them to rent out. Institutional investors purchase foreclosures in bulk, sight unseen, and may completely dominate certain markets.
It can be very difficult for single-property buyers and non-cash buyers to break into the foreclosure market. However, there are programs through HUD, Fannie Mae and Freddie Mac that give owner-occupant home buyers a “first look” at foreclosed properties before any offers are welcomed by investors. The “first look” period is limited, but it gives traditional home buyers their best opportunity to purchase a foreclosed home. Work with SC Homes and Land to find foreclosures in South Carolina!
When a homeowner owes more on their home than what it’s worth on the market, they are in a negative equity position, or “under water.” And because mortgages have a due-on-sale clause, the home cannot be sold without paying off the lender in full – unless, the lender approves a short sale.
In a short sale, the lender agrees to accept a payoff that is “short” of the mortgage balance owed. For a short sale to be conducted, the homeowner must have a qualifying hardship that is recognized by the lender’s criteria. Being underwater in equity is not enough.
Short sales are complex, time-consuming transactions that are not necessarily a bargain for the buyer. These properties are often listed at full market value, with discounts only applying if the home condition warrants it.
Also, if the home seller fails to comply with any step of the bank’s approval process, the deal can fall through after weeks of effort, completely beyond the buyer’s control.
Yet there are times when a short sale presents an opportunity to buy an excellent home. Banks have streamlined the short sale process in recent years, and the timelines for completion are now close to a traditional home sale. SC Homes and Land can help you succeed in purchasing a South Carolina short sale!