This site updates foreclosures, short sales and REO (bank-owned) property on Hilton Head Island and Bluffton, SC daily. While often perceived as one-and-the-same, these real property purchase options are classified by very different laws and financial industry directives. Strict guidelines, timelines and procedures must be followed with the courts and lending institutions.
Hilton Head Island plantations and communities in which the opportunity has presented itself for foreclosures, short sales and REO properties include Sea Pines, Wexford, Shipyard, Long Cove, Palmetto Dunes, Folly Field, Palmetto Hall, Hilton Head Plantation, Indigo Run, Spanish Wells, Windmill Harbour and Forest Beach.
Hilton Head FORECLOSURE is a process that occurs after a public default notice (Notice of Default or Lis Pendens) has been filed in the county public records. This allows the lender to recover the amount owed on the mortgage loan by repossessing the property securing the loan. This process begins after the owner (borrower) ceases to make mortgage payments to the lender. Technically, two payments in arrears will trigger action from the lender’s delinquency department. The lender must then give written notice that it will sell the property unless the payments are brought up to date.
Hilton Head SHORT SALES occur prior to the property going up for public auction. With a short sale, the lender agrees to accept less than the amount owed on the mortgage loan. In essence, it is the sale of the mortgaged property whereby the proceeds from the sale fall short of the balance owed on the loan. However, many short sales leave a deficiency balance for which the borrower is still liable. It is up to the lender to pursue that deficiency.
REO (Real Estate Owned) Property is property that is owned by the lender after the unsuccessful sale at a foreclosure auction. As soon as the lender repossesses the property, it is then listed as Real Estate Owned in their books. It is a non-performing asset and the lender is usually eager to re-sell the property to recover the unpaid loan amount. Most large mortgage lenders have entire departments dedicated to fielding bids presented by the local Realtor who performed the Broker Price Opinion (BPO) on each specific property.
Interested and qualified buyers need to exercise prudence in choosing their real estate professional, as this person must be experienced in Hilton Head real estate and contract law, and be astutely familiar in South Carolina law governing foreclosures, short sales and REO properties.