Although there are federal laws in place in the event of property foreclosure, there are state laws as well. These state laws differentiate the process of foreclosure and vary greatly depending on where your property is located.
If you are interested in having a better understanding of the South Carolina foreclosure process, here are a few facts about current foreclosure procedures in the state:
Foreclosure Interventions
The state of South Carolina observes an administrative order that requires banks to provide a notice of the right to foreclosure intervention to the property owner. This allows property owners to apply for an alternative to foreclosure before the actual process begins. If a property owner neglects to apply within 30 days, the bank then has the right to continue with the process.
Redemption Rights
While some states allow it, South Carolina does not permit property owners to redeem the house after the foreclosure process. While redemption isn’t a real option in South Carolina, there is another way for the owner to regain possession. An upset bid allows the owner to make a higher bid than the highest at the property sale, resulting in the repurchase of the home or property.
Foreclosure Reinstatement Rights
Like South Carolina does not permit property redemption, the state also does not provide a right to reinstatement once the foreclosure process begins. Since reinstatement is not protected by state law, a property owner’s best option would be to check their mortgage documentation to see if there is any clause about reinstatement.
Although it is better to avoid the process as a whole, it is important to have an understanding of the state laws just in case you or someone you know finds themselves in this position. While the South Carolina laws don’t allow for reinstatement or redemption, there are other options to help avoid the loss of your home.
Are you looking to buy or sell your home, and looking to find the right realtors to help you do so? Reach out to our team at Drew Sineath & Associates, and we’d be happy to help!