Hilton Head Island Foreclosures And Short Sales

There Are Still Deals To Be Had

When the market bottomed out I had an irrational, sinking feeling that things would never be the same. Like most real estate agents, I was both right and wrong. Right, in that the crisis sparked a wave of foreclosures and short sales unprecedented in the history of the modern housing market. Wrong, in the assumption that nobody would ever make money in the investment housing market again.

The crisis hollowed out the industry. Many of my peers fled real estate and started on new paths. I stuck it out and weathered the worst-selling years of my career. In the years since, my commitment to the industry has been vindicated. As the country pulled up their bootstraps, the housing market started to recover. Real estate prices began stabilizing. Smart, well-positioned buyers snapped up distressed properties. In the intervening years, I helped a lot of people make a lot of money.

In the process, I received my CDPE (Certified Distressed Property Expert) designation. I leveraged my experience in better times to help people get the deal of the century on some very nice homes, condos and townhouses. And while I'll admit that most of the low-hanging fruit was picked long ago, I'll be the first to tell you that it's still possible to get a home on Hilton Head Island for a substantial savings.

But only if you call a REALTOR®. At some point in the home buying process, you'll need to enlist the help of a qualified agent. Get a head start on forming that relationship. Stop searching listings on Trulia and Yahoo that expired or sold months ago. Your foreclosure, REO, or short sale is only a phone call away.


RE/MAX Island Realty
e: jim@hiltonheadrealestate.com
p: 843.422.2491

What Is A Foreclosure?

When a lender attempts to take possession of a property, they will use the foreclosure process. Typically, lenders initiate foreclosure when a homeowner fails to make mortgage payments for three consecutive months. The procedure varies by state.

In South Carolina, it takes the court 150-180 days to effect an uncontested foreclosure. Foreclosure may be delayed by the borrower through delay tactics, adjournments of hearings, or bankruptcy. Borrowers must receive a notice of sale, to be published for at least three consecutive weeks. This notice is also posted at the courthouse at least three weeks before the sale. Borrowers sometimes request an application for an "order of appraisal", whereby an independent appraiser determines the property's high value. If the lender is seeking a deficiency, this amount may be substituted for the sale amount. By law, South Carolina does not honor the right of redemption, and lenders can initiate deficiency judgements when a property sells for less than the loan amount.

A judge will authorize the sale of the property when foreclosure proceedings have concluded. The property is then auctioned at a trustee sale. If bids match or exceed the minimum set by the lender, the property's title goes to the winning bidder. When a property fails to sell at a trustee auction, it becomes an REO property.

What Is An REO?

A property becomes real estate owned, or REO, if it fails to sell at auction. In such cases, the bank "inherits" the property. The bank wants to recoup their investment as soon as possible. To facilitate closure, lenders hire real estate agents to market their newly-acquired properties. Occasionally, lenders will remove title liens and resolve issues that might hinder a potential sale.

What Is A Short Sale?

Once uncommon, the financial crisis of 2008 sparked a national rush of short sales. Since 2008, over 2.2 million real estate transactions have been short sales. What forced the nation's lenders to favor short sales? As lenders became swamped with extreme rates of foreclosures, the industry wanted to avoid the spiraling costs of foreclosure faced by both borrowers and lenders.

The lender is effectively agreeing to accept less than the amount owed by the borrower. A short sale will most likely harm the credit of the borrower, but not usually as harshly as a foreclosure would. In addition, a short sale does not free the borrower from their financial obligation to the lender, unless explicitly agreed to.

How Do I Purchase An REO Property?

First, let's put the bad news behind us. The days of pennies-on-the-dollar sales have long since passed. If you're sitting on the fence waiting for the next unbelievable deal, it might be awhile. Property values are recovering slowly but surely. That recovery will likely continue into the foreseeable future. That said, there are deals still worth pursuing.

Large investors have become wise to the opportunities in the distressed property market. The best way for you to proceed? Contact us and position yourself to pounce on that once-in-a-lifetime deal the minute it hits the market. We receive daily hot-sheets that detail the latest local listings. Having an agent that can vet properties on your behalf is key to success. Timing is everything in the distressed property market. Position yourself accordingly by hiring us today.

Foreclosures | Latest Real Estate Listings

board logo

We do not attempt to independently verify the currency, completeness, accuracy or authenticity of the data contained herein. It may be subject to transcription and transmission errors. Accordingly, the data is provided on an “as is,” “as available” basis only and may not reflect all real estate activity in the market. © 2018 Multiple Listing Service of Hilton Head Island, Inc. All rights reserved. Certain information contained herein is derived from information which is the licensed property of, and copyrighted by, Multiple Listing Service of Hilton Head Island, Inc.