What Is A Foreclosure?

This part of our website is probably one of the most painful and for some, the most embarrassing. For whatever reason, you have gotten behind on your payments and facing foreclosure. The important thing for you to realize is that you are not alone. There are literally millions of people going into foreclosure. Although it might feel like it, we can assure you that the sky is not falling and the world is not ending. It just is what it is in this economy. The best thing is for you to accept that this your reality. But remember - how you got here is not as important as what to do next. Your NUMBER ONE priority is to find out how to avoid foreclosure!

So what is a foreclosure? Many people do not have a clear understanding as to what that means for them. In a nutshell, your lender has the right to call your loan “due in full.” Think back to when you purchased your home. At the closing, you sat through a lengthy explanation of hundreds of pages that you signed- well, that was your mortgage. One of the most important documents stated that if you were to ever fall behind on your payments, the lender could demand you pay it in full if you were unable to bring your loan current within a period of time. If you are unable to do either, they have the right to sell your home at a public auction.

There are 2 types of foreclosures. The first type is handled through a court system and is referred to as a “judicial foreclosure.” The second type does not use the court system and is referred to as a “non-judicial foreclosure.” Here in South Carolina, lenders use mortgages to secure properties (as opposed to security deeds) and all foreclosures are judicial. The good news? This process takes longer. In non-judicial states, if you fall behind on your payments, you can lose your property in 30 days! Regardless, you should remember that if you are behind on your payments, or if you have even received a notice for a foreclosure hearing, the worst thing you can do is nothing!

As always, we are here to help at anytime. We will keep updating our site in order to give you the best information possible. You can always contact us with any questions you have. If you would like to set up a free, confidential consultation with one of our specialists, please click HERE. We hope that you are finding this information useful and wish you the best!