Can I Sell My Home If It’s In Foreclosure in SC?

Foreclosure happens when homeowners can’t make their mortgage payments and have no way to catch up on missed payments. Since a mortgage is a binding contract between you and your lender, defaulting on the loan gives the lender the right to auction your property to recover outstanding debts, leaving you without a home and with severely damaged credit.

Nobody wants to face foreclosure, yet according to a nationwide study, nearly 1 million Americans feared losing their homes (U.S. Census Bureau Household Pulse Survey, fielded from July 27 to Aug. 8, 2022). Foreclosure can happen for various reasons, including:

• Job loss and reduction in income
• Divorce or death of a spouse or partner
• Overwhelming debt, including medical bills and credit cards
• Relocating without being able to sell your property
• Natural disaster

Cash Home Buyers is a trusted local real estate solutions company operating in SC with over 13 years of experience. We specialize in buying distressed properties for cash, offering creative financing options when other buyers say “no.” We promise competitive cash offers without the hassle of real estate agents, title companies, traditional bank financing, and more!

What is Foreclosure?

Imagine you or your spouse recently lost your job. You still have the same bills to pay, but suddenly you don’t have the income to cover expenses, including your mortgage payment. What happens now? Even if you find another job quickly, the debt accumulated during that time might be too substantial to manage. When this happens, your lender begins the foreclosure process.

How Long Do You Have To Get Out of Your House After Foreclosure?

The foreclosure process typically follows these steps: missed payments, public notice, foreclosure, auction, and eviction. However, the timeline varies by state. You could have anywhere from 120 days to nine months before the bank can foreclose using either judicial or non-judicial methods. During this period, your lender will contact you by phone, mail, and email to inform you about the process.

The Different Types of Foreclosure

There are two different types of foreclosure you may experience: nonjudicial foreclosure or judicial foreclosure.

What Is Non-Judicial Foreclosure?

A non-judicial foreclosure is the fastest and most cost-effective way for a lender to foreclose on your SC property. It doesn’t require taking you to court and can be completed according to state laws. In non-judicial foreclosure, your lender repossesses your home to sell it and recover the outstanding debt using a “power-of-sale” clause in the deed of trust. Not all states permit this option, but when available, lenders typically choose it to avoid court expenses.

What Is Judicial Foreclosure?

In states requiring judicial foreclosure, your lender must file a lawsuit asking the court to authorize the sale of your home. The lender must provide you with this legal notice. Whether you agree or not, you must respond to the notice, or the lender will automatically win the case and be allowed to put your home up for foreclosure sale. After the house is sold, you’re still responsible for paying the difference between what you owe on the mortgage and the sale amount.

Foreclosure auctions aren’t like regular home sales, and properties typically sell below market value. This means even if your house is in excellent condition and worth much more than your remaining mortgage, you might still owe tens or even hundreds of thousands of dollars for a house you no longer own! This is called a deficiency judgment. It’s a costly and lengthy process for lenders trying to recover their debt, which is why most prefer non-judicial foreclosure when possible.

How to Sell Your House Before Foreclosure in SC

Let’s explore several ways you can sell your house, depending on your timeline and situation:

Hire A Real Estate Agent

The first option most homeowners consider when selling property is contacting a local real estate agent. However, this approach has pros and cons when you’re facing foreclosure. While a good agent can list your property on the MLS and prepare it for showings, they do this work expecting a sizeable commission from your sale proceeds. When you’re already struggling with mounting debt and need every dollar to repay your lender, commissions of 3% to 6% of your final sale price might be too much to sacrifice.

Plus, there’s the uncertainty of when your house will actually close. Realtors may make promising claims, but ultimately you’ll need to find the right buyer and wait at least 30 days for a traditional closing. For homeowners facing imminent auction and eviction, even a one-month wait might be too long.

Short Sale

If you owe more on your house than it’s currently worth, your realtor may recommend a short sale. This becomes necessary when your mortgage balance exceeds your property’s market value. For example: if you owe $200,000 on your house but it’s only worth $150,000 in today’s market, you’ll need to pursue a short sale. Though it might seem like a good solution, it won’t be quick or simple.

First, you’ll need your lender’s approval. To qualify for a short sale, you must demonstrate financial hardship with documentation such as W-2s and medical bills. For situations like income loss, the lender will require proof that your financial situation is long-term and unlikely to improve soon. If the lender approves the short sale, you’ll need to find both a real estate agent and attorney who specialize in short sales, and they’ll charge the same fees as they would for a traditional home sale.

If your foreclosure hasn’t progressed too far and you’ve maintained communication with your lender, they’ll likely approve the short sale. This allows them to avoid the time and expense of foreclosure while still recovering some of their loss. However, for you as the homeowner, the short sale will impact your financial life for the next 5 to 7 years.

Although you may have sold the house and paid off some debt, a short sale can damage your credit almost as severely as bankruptcy. Credit bureaus record both the mortgage delinquency and the short sale itself, making it extremely difficult to obtain credit cards, finance a vehicle, or secure housing for years afterward.

Sell Your House AS-IS to A Cash Buyer

If you’re facing a tight deadline to sell your house before foreclosure advances to auction and eviction, you have options! You can attempt to sell with a real estate agent, work with your lender on a short sale, or – most effectively – turn to a trusted local cash investor like En-Vision Home Solutions who understands creative financing solutions.

The benefits of selling to a direct cash investor include:

• A quick and stress-free closing process, sometimes in as little as 7 days.
• No commissions, fees, or surprise costs to pay.
• No need to market your property or wait for qualified buyers.
• Sell as-is with no cleaning, repairs or renovations required!

When you sell your home as-is to a direct cash buyer with creative financing expertise, you can avoid losing your home to auction and potentially sell for enough to escape your financial debt. Moving forward without the burden of monthly mortgage payments and overwhelming debt is one of the greatest gifts you can give yourself and your family!

Can You Stop Foreclosure Once it Starts?

Pay Off Your Loan & Fees

You’re in a challenging situation where debt is accumulating while your income remains unchanged. It’s time to seriously consider ways to reduce your debt quickly. Do you have assets you can liquidate? Perhaps friends or family members who could provide financial assistance until you regain stability? If you’re committed to paying down debt and preventing foreclosure, you might benefit from professional financial guidance to restructure your budget. Consider using one or a combination of these approaches to tackle your debt mountain and return to a stress-free life.

Declare Bankruptcy

As a last resort, bankruptcy may temporarily halt your home’s foreclosure, but it comes with significant consequences. The bankruptcy process is complex and requires an attorney specializing in bankruptcy law. If the court approves your petition, you’ll enter a government-approved credit counseling program, and the bankruptcy will remain on your credit report for 7 years. This affects all aspects of your financial life, including vehicle purchases, credit applications, bank accounts, and even rental applications.

The Homeowner Affordability and Stability Plan (HASP)

If your debt exceeds your income, you might qualify for the Homeowner Affordability & Stability Plan (HASP). This loan modification program targets borrowers at risk of foreclosure due to insufficient income. The government program helps United States homeowners restructure their monthly payments to accommodate limited budgets. Check your eligibility by applying here.

Sell Your House Fast to a Cash Buyer

Are you ready to sell your house but don’t have time to wait 30+ days for a traditional closing? Does a short sale seem like a fast track to credit damage? Would you prefer to eliminate all your debt at once and quickly get the bank off your back? A direct home buyer with creative financing expertise might be exactly the solution you need! When you work with En-Vision Home Solutions, a trusted local company with over 13 years of experience, you’ll find a responsive team with cash ready to purchase your home as-is. With our bilingual staff and expertise in complex situations, you can avoid the lengthy foreclosure process in as little as 7 days while preserving your credit!

While you might not receive full market value when selling to a cash investor, the benefits of a fast closing (as little as 7 days), no fees, no required inspections, and no commissions often balance this out. Most importantly, because we can close quickly, you can often finalize the sale before the bank auctions your property! This means you can sell for a price that benefits you rather than accepting the pennies-on-the-dollar price banks often settle for just to remove the property from their books.

We Buy Houses in Foreclosure & Pre-foreclosure – Get Your Offer Today!

Does the thought of finally walking away from your property without the dark cloud of foreclosure hanging over your head appeal to you? Contact a creative financing specialist at Cash Home Buyers today for a straightforward, friendly conversation about your options and get a fair cash offer for your property – sometimes even in Spanish if that’s more comfortable for you!