Can You Sell a House in Foreclosure South Carolina?
While it may seem like you’re out of options, there’s always the possibility of selling your house that is in foreclosure in the state of South Carolina. All you need is a formally signed offer before it goes to auction at the sheriff’s sale. Whether you’re under financial hardship due to a divorce, medical bills, job loss, or even the death of a loved one, you don’t have to wait for the foreclosure process to secure the title to your home. Upstate Home Offers can buy your home for cash to assist you in avoiding a foreclosure sale, judges, and even county agents.
Table Of Contents
- Selling Your House During Foreclosure in South Carolina
- What is Foreclosure?
- How Does Foreclosure Work in South Carolina?
- The Process of Selling a House in Foreclosure in South Carolina
- Obstacles When Selling a Home in Foreclosure in South Carolina
- Options Other Than Selling a Home in Foreclosure
- South Carolina Foreclosure Resources
- Selling a House in Foreclosure in South Carolina Common Questions
- Easiest Way to Sell a House in Foreclosure in South Carolina
Selling Your House During Foreclosure in South Carolina
Facing foreclosure can make you feel like your possibilities are bleak. However, it’s very important to realize that you can successfully sell your home before the lender puts it up for a foreclosure auction. As long as you have a legitimate offer for your home, the lender may no longer foreclose on the property. This can save you from the damage of having a foreclosure listed on your credit report and help to ensure that you get a fair cash offer for your home.
What is Foreclosure?
Most people take out a mortgage on a home without really thinking about the legal repercussions of missing payments in the future. Unfortunately, issues like a job loss or divorce could leave you missing mortgage payments. After about three to six months of missed payments, your lender or their acting policy agent will likely initiate the process of foreclosure.
This is where they legally apply with the county court to take over ownership of the property. Think of foreclosure as similar to a car repossession. Since you violated your loan agreement, the court will award ownership of your property to the lender who will sell it to recuperate their losses. Throughout this process, you face many difficulties as a homeowner.
First and foremost, you’ll be evicted from the property location by a county court agent. Second, the missed payments and foreclosure will show up on your credit report, making it nearly impossible to receive funding for a new mortgage or other credit services in the foreseeable future. Third, you may still owe money on the home after it sells. If the bank isn’t able to get enough money on the auction sale to pay off the remaining balance of the mortgage and legal fees associated with the foreclosure, you may be sued for the deficient balance.
How Does Foreclosure Work in South Carolina?
It’s important to understand how the process of foreclosure works and its timeline in your county so you know when you can still sell your house in South Carolina. Generally, there are six main steps to any foreclosure that happens. The first step is when you miss your mortgage payment. Most lenders will give a grace period of about 15 days until they charge you a late fee.
The second step is when you’re deemed to be in default on your mortgage. This happens when you’re over 30 days late on your mortgage payment. The third step is when you receive a notice of default or notice of a foreclosure lawsuit. Since South Carolina is a judicial foreclosure state, your mortgage lender will have to go through the state’s court system to gain ownership of the house.
As soon as you receive the judicial foreclosure notice, you’ll need to respond to the court to ensure that your mortgage lender doesn’t get a default judgment in their favor. If you file a response, the lawsuit will go to trial. This is considered the pre-foreclosure process and is step number four in the foreclosure process.
Step five includes a notice of sale where your mortgage lender will list a sale date for the house. If you don’t contest the lawsuit, this sale can take place in as little as four to six months. If you contest the lawsuit, this could take much longer, depending on the specifics of your case.
The final step of the foreclosure process is eviction from your estate. You’ll be given notice that the house was sold and be required to legally vacate the house. You can legally sell the house up until the actual mortgage lender’s sale date. In fact, it’s highly recommended that homeowners sell in the pre-foreclosure process to avoid any deficiency that may take place if your mortgage lender sells the house instead.
The Process of Selling a House in Foreclosure in South Carolina
Now, since you know that it’s totally possible to sell your home that is in foreclosure to avoid many of the negative consequences, it’s time to focus on the process of selling. First and foremost, you want to find out what your estate is actually worth. You can do this by having it professionally appraised or by using online tools.
Once you have a good idea of what your estate is worth, it’s time to set an asking price. It can be extremely helpful to talk with your mortgage lender to determine what you physically owe on the house, including your back mortgage payments. You want to sell the house for a price that ensures that you’re making enough to pay off what’s owed on it.
Obtaining an all-cash offer from Upstate Home Offers is a great way to help get the sales process underway. Waiting for open market offers from buyers to come in through your real estate agent and negotiating can take precious time that you likely won’t have during the foreclosure process. Next, you’ll want to let your mortgage lender know that you’ve received a viable all-cash offer for your estate and the amount.
Most mortgage lenders are more than happy to avoid the hassle of going through the legal proceedings and auction process. Once your lender is notified, you’ll just need to finalize the deal with your cash buyer, and you’ll avoid a costly foreclosure on your estate.
Obstacles When Selling a Home in Foreclosure in South Carolina
As you’ve likely surmised, selling a home during the foreclosure process isn’t as easy as selling under normal circumstances. In fact, there are several challenges that you may face when trying to sell your home when you’re in this type of legal situation. First is the pressure of time.
When your home is in foreclosure, there is only a limited amount of time until your lender is legally awarded full ownership of your house. You need to be able to sell it before that happens. Another issue you may have is that you’re facing bankruptcy. You may need to wait until the legal process for the bankruptcy proceedings finish before you can officially sell your house.
Options Other Than Selling a Home in Foreclosure
Selling your home when you’re in foreclosure may not be the first thing that you want to do. You may want to try your luck at some other potential alternatives to preventing the entire foreclosure process from happening.
In some cases, you may be able to speak with your lender about possible loan modifications. These may include things like lengthening the term of your existing mortgage loan or potentially deferring parts of your mortgage payments through forbearance based on income statements. Different lenders will have varying loan modification options that they may offer. Keep in mind that many lenders are more than willing to work with you to avoid the lengthy and costly process of foreclosure.
Refinance Before Foreclosure
Another option you may have is to replace your current mortgage with a new one. This could be through your existing lender or a new one that is willing to pay for the back mortgage payments. The new loan will likely have a new structure, such as a longer term.
Get a Deed in Lieu of Foreclosure
Another solution to avoid the repercussions that come along with foreclosure is to enact a deed in lieu of foreclosure. This is simply a fancy way of saying that you’re turning the ownership of your house over to your bank. This will absolve you of the debt that you owe on the house. However, keep in mind that you’ll lose ownership of your home.
The last option that you have is to go through a short sale. This simply means that you’ll be selling your house for less than the amount of money that you currently owe your bank. This type of sale is approved by county bank agents in some rarer cases where your existing lender believes that they won’t be able to recover the total debt that you owe them.
South Carolina Foreclosure Resources
Fortunately, as a homeowner in South Carolina, there are various resources, guides, and a plethora of helpful information available to you in regard to the foreclosure process, laws, and your rights. These include all of the following:
There are also various foreclosure attorneys that can assist homeowners throughout the state. Some of these include the following:
Selling a House in Foreclosure in South Carolina Common Questions
When it comes to selling a house that’s in the foreclosure process, it’s not uncommon to have questions. In fact, we’re going to discuss some of the most common questions that homeowners ask below and provide you with thorough answers to give you a better understanding of the overall process.
How Long Does It Take to Foreclose on a House in South Carolina?
In the state of South Carolina, there is a judicial foreclosure process. This involves necessary legal proceedings in order for a bank to take ownership of a house. This could be anywhere from six months up to more than a year, depending on the individual situation.
How Do I Stop a Foreclosure Auction Immediately in South Carolina?
One of the best ways to stop a foreclosure auction from happening in South Carolina is to sell the house before the auction date to get the necessary funds. Selling to an all-cash buyer is a great way to ensure a fast sales process. You have up until the date of the auction to successfully sell your home before the official foreclosure takes place.
Does South Carolina Have the Right of Redemption After Foreclosure?
In some states, the government will allow the previous homeowner the right to buy back their property. They must pay the outstanding mortgage balance and any of the fees incurred during the entire foreclosure process. Unfortunately, South Carolina doesn’t have a right of redemption period. Once your home is sold at a foreclosure auction, there is no option to buy it other than directly from the new property owner.
Can I Sell My Home if I’m Behind on My Mortgage?
Yes, it’s totally possible to sell your home if you’re behind on your mortgage payments. In fact, many mortgage lenders suggest doing so to avoid having to go through the headache of the foreclosure process. It’s important to note that you must sell the property for an amount that covers what’s owed on the property, including your past-due mortgage payments. Only in rare cases will a bank let you sell your house for less, also known as a short sell.
Easiest Way to Sell a House in Foreclosure in South Carolina
If you’re interested in trying to sell your home during the foreclosure process, then it’s time to contact us. We’re honest professionals who have experience buying homes in foreclosure in South Carolina. We’ll be more than happy to purchase your home in as-is conditions, with no repairs needed.
When you opt to sell a house in foreclosure in South Carolina to a cash home buyer like us, you can be assured that you can save yourself precious time and enjoy a hassle-free sales process. We’ve helped homeowners sell their homes that were in the foreclosure process in Charleston, Columbia, Mount Pleasant, Charlotte, Summerville, North Charleston, and Greenville.