Is your house in foreclosure? Understanding the foreclosure process in SC is pivotal in helping you learn your options and what your own home foreclosure timeline is. After you have this information you will be on your way to knowing how to stop foreclosure in South Carolina. Decisions should be made and action taken quickly . Feel free to call us at (843) 722-8937 today if you would like bypass the research and save time by having us to walk you through the foreclosure process in just a few minutes over the phone.
Before we get started….
So, what is foreclosure actually?
Foreclosure is the legal process that mortgage lenders or other lien holders use to force you to sell and pay them off or to actually take the property through a foreclosure auction. This is usually happens after the owner stops making payments on a loan that is secured by the property.
Foreclosure is not at all enjoyable. But realize that it’s not the end of the world.
When you understand how foreclosure in SC works… it arms you with the information you need to help you get through it and come out the other side with the best possible way without losing credit, your spouse, your health or your sanity.
The Basic Stages of A Foreclosure
There’s a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways that different states foreclose on property are: judicial sale or power of sale. SC is a judicial state.
Connect with us by calling (843) 722-8937 or through our contact page to have us walk you through the specific foreclosure process here locally in Charleston and to answer any questions you might have.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property for the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate investment firm like us at Charleston Home Buyers to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced real estate investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Charleston, we can help you.
We buy houses in Charleston SC like yours from people who need to sell fast.
Give us a call anytime (843) 722-8937 or
fill out the form on this website today! >>
Other Foreclosure Resources For Charleston SC HomeOwners:
- Resources On Avoiding Foreclosure from the U.S. Goverment
- Foreclosure details in SC
- Mortgage Relief Project