What to know before buying foreclosed South Carolina homes that are occupied by tenants or the previous owner
You may have heard that a good way to get a new home or investment property in South Carolina at a great price is to buy a home in foreclosure or pre-foreclosure. While you can get great deals on these properties, you may be buying foreclosed South Carolina homes occupied by the former owner or tenants. If this is the case, you’ll need to know the rules and procedures of buying occupied foreclosed South Carolina homes.
A number of circumstances may lead to an owner or a tenant remaining in a home while it is being sold. Sometimes a bank or lender will take ownership and sell the property before the current occupants have vacated the property. The owner may also be selling in pre-foreclosure or through a short-sale.
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On an investment deal, buying foreclosed South Carolina homes occupied by a tenant who pays rent on time and maintains the property properly is a plus. On the contrary, if the home will be your residence or you want to evict the tenants, there are some costs and regulations involved. Also, a tenant who knows the property is in foreclosure may not be paying rent. Worse yet, a homeowner or disgruntled tenant sometimes causes extensive property damage to the home. You will inherit the damages and costs of repairs when you buy the property. If you are buying an occupied rental, you won’t get the security deposits that tenants paid to cover damages. So, you may be stuck paying for damages or suing tenants for damages.
When buying occupied foreclosed South Carolina homes, you may need to evict the the current occupant. The legal process of eviction can take months and be quite expensive. If the tenant or owner claims so-called squatters' rights, this can also cause a legal impediment to the process.
It's a good idea to talk to a lawyer before buying an occupied home. Then, talk to the occupant and find out if he or she plans to leave what you can do do to speed up the process. You might pay relocation expenses for the occupant in order to expedite the process.
Before buying foreclosed South Carolina homes occupied by a tenant or former owner, talk to a real estate agent and a lawyer who specialize in foreclosure and pre-foreclosures. Reply! can help you find real estate professionals in your are as well as foreclosure listings.