Research the property and title before buying South Carolina foreclosed homes at auction
If you are considering buying South Carolina foreclosed homes at auction, there are great deals to be had. However, be aware of a few issues that can complicate the buying process or lead to the purchase of a money pit rather than a dream home.
Foreclosure orders
In South Carolina, foreclosed property is overseen by a judge known as a Master in Equity. This judge issues the foreclosure order that sets a foreclosure sale if the lender is not repaid in 30 days. The foreclosure order consists of the property's legal description, legal advertisement requirements, notice of liens or taxes connected to the property and the location and time of the sale.
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The lender must advertise the sale in local newspapers after the judgment for foreclosure is made. In South Carolina, these listings must run consecutively for three weeks to alert the general public of the upcoming auction. The ads are intended to attract bidders to the auction because the more bidders there are on a property, the greater the chances for the lender to recoup its money. The ads must contain the terms of sale for the foreclosed property. There is no preregistration required if you are interested in buying South Carolina foreclosed homes at auction. anyone can simply show up and place an offer.
Vague legal descriptions
When you go to foreclosure auctions, one of the largest problems is the Master in Equity's office will not have much information regarding the property's actual physical condition. A legal description of a property is basically the location and any improvements made to the property.
The deed offered on the property includes any property taxes due, which will have to be paid by the winning bidder. There is also no warranty of a clear title, so bidders are advised to do a title search prior to purchase to ensure that the title is clear of liens. Before buying South Carolina foreclosed homes at auction, you can ask a title clerk to check the deed for liens.
Deficiency sales
The lender may also wish to conduct a deficiency sale. In a deficiency sale, the lender not only forecloses on the property but also seeks a judgment for money. This means that the bidding will continue for 30 days. On the final day of auction, the highest bidder will be awarded the property. This delayed bidding is intended to raise the auction price as high as possible to reduce the monetary judgment against the former homeowner. If you win the auction, a payment of 5 percent of the bid must be made on the same day. You’ll have another 30 days to complete the sale.
In South Carolina home auctions, foreclosed properties can be purchased without real estate agents. You must first consider a few issues before buying South Carolina foreclosed homes at auction, however. If you're aware of the potential problems beforehand, you can generally avoid a bad purchase. If you want to look at South Carolina foreclosed homes now, go to Reply!