No homeowner ever wants to receive a foreclosure notice. But if you’ve received one, then you need to act quickly. Ignoring your foreclosure won’t solve the problem, and it’s in your best interests to deal with it immediately to mitigate its effects on your finances.
The first quarter of 2021 saw 33,699 properties foreclosed in South Carolina and the rest of the United States, so you’re not alone. Here are a few options you can do with your home in South Carolina in case you’re hit with a foreclosure.
Can I Still Sell My Home?
Until the bank or your lending company has taken possession of your house and has sold it off at auction, your home is in a state of pre-foreclosure. This means you can still legally sell your house and settle your debt with the income of the sale.
It’s not the best position to be because, either way, you lose your home. But selling off your house during pre-foreclosure and paying off your debt is the more ideal outcome than losing your home to foreclosure, which can affect your credit score for future transactions with banks and lending companies.
Should you decide to sell, tell your lender immediately. In South Carolina, you have up to 180 days to effectuate an uncontested foreclosure. This means you have roughly six months before your lender can legally foreclose your home. However, some banks may be more lenient and give you more time to find a buyer and settle your debt.
Remember: your lender just wants to recoup their losses from lending you money. There are additional costs to foreclosing and auctioning off your property. If you can sell the house at a price that covers what you owe (including penalties, mortgage payments, and additional fees), they could be willing to work with you to avoid foreclosure.
Contact Your Lender
We’ve already established that foreclosure is your lender’s last resort to recoup their losses. That’s why there’s a high chance that your lenders are willing to work with you if you’re finding it difficult to make your payments. If you haven’t received a foreclosure notice yet or are experiencing difficulty making your payments, now is a good time to contact your lender.
Some lenders are understanding and will offer to restructure your monthly payments. Rather than paying what you did monthly, they can create a new payment plan to make up for your missed payments while making it more feasible for you to pay off the rest of your debt. Some lenders also allow you to reduce or suspend payments temporarily until you’re in a better financial situation.
Hire A Real Estate Agent
Since time is of the essence, you’ll want to work with a real estate agent. They should know how much your home is worth, give you an accurate estimate of what you can earn, and can even negotiate with your lenders about how much money they will receive to recoup most of their losses.
While a real estate agent is the convenient way to find someone to do most of the work selling your home, this comes at a financial setback. Real estate agents work on commission, with an average of 5 or 6 percent of the house’s selling price. This may not seem like a lot, but if you’re liquidating your home to pay off your debt, that commission is an added cost that may make the net payment insufficient to pay off your debt.
Sell Your Home To A Professional Home Buyer
Rather than going to a real estate company to serve as a middle-man for you and a buyer, going to a professional home buyer is the faster, more streamlined solution. How Sell My House Fast GSAP works is fairly simple: we buy your house as-is (no need for repairs or renovations) for a fair price in cash.
Because we buy homes with cash, we do not have to spend time getting a housing loan while still providing a fast and secure mode of payment. We’ll take care of the inspection and shoulder the closing costs. This means what you earn from the sale won’t be deducted by commission fees, closing costs, or any hidden fees that comes with selling a house.
When faced with a foreclosure for your home in South Carolina, time is off the essence and it’s in your best interests to act fast. If you’re looking to sell your house fast without going through the time-consuming hassle of traditionally selling a house, look to a professional home buyer.
At Sell My House Fast GSAP, we’ll give you a fair price. Contact us today to learn more.