What you should know about buying foreclosed South Carolina homes
Foreclosed homes are available throughout the country. If you are interested in buying foreclosed South Carolina homes, you’ll find that you can skip the auction block. Many individuals believe that lenders sell foreclosed properties at auction, but the banks actually do not own these homes. You need to learn the difference between auctions and bank-owned property sales before shopping.
South Carolina foreclosure law requires the lender to file a motion with the court after a borrower defaults on the loan. The court gives the borrower 30 days to pay the loan or missed payments. If the individual doesn’t pay what’s due, the home goes up for sale on the first Monday of the following month. However, if the property doesn’t sell, the lender can make a private sale.
When a house is for sale at auction, the lender does not technically own the property. The mortgage still exists on the home and any money raised during the sale goes towards that mortgage. The property only becomes a bank-owned property if it doesn’t sell at auction. When you buy a house at auction, you must bring a cashier’s check for 5-10 percent of the sale price. With bank owned properties, you can apply for a mortgage to cover the entire cost of the home. Banks seldom do any work to the home, whether you buy at auction or directly from the bank, you purchase the property as is. However, banks typically allow you to hire an inspection of the property prior to buying it.
Buying foreclosed South Carolina homes from banks is easy if you know where to look and what to do. The longer a bank owns a property, the more money it loses. This is why many banks want to sell quickly. Banks may offer you a home loan on the property, if you have good credit.
Whenever you make a major purchase, there are pitfalls that you want to avoid – the same is true when it comes to buying a foreclosed property. Buying foreclosed South Carolina homes that banks own is a simple way to purchase a home for a price below market value. Look for foreclosed homes near you on RealtyNow.