Can I Sell My Home if It’s in Foreclosure?

URGENT: Yes, you can sell—but time is critical.

If you’re facing foreclosure in Myrtle Beach, don’t panic. You have more options and rights than you might realize. In South Carolina’s judicial foreclosure system, you have time to sell your home before it goes to auction.

How Much Time Do You Have?

South Carolina uses judicial foreclosure, meaning your lender must sue you in court. This process takes several months, giving you a window to act.

The Timeline:

1. 120+ days behind: Lender can file lawsuit (federal law)
2. Lawsuit filed: You get 30 days to respond
3. Court judgment: Judge approves foreclosure
4. 3-week notice: Sale advertised in newspapers
5. Auction: Property sold at Horry County courthouse

Bottom line: From the lawsuit filing to auction, you typically have 4-6 months. That’s enough time to sell.

Your Rights Under SC Law

South Carolina law protects homeowners during foreclosure:

• Right to loss mitigation: Your servicer must contact you within 36 days of a missed payment about alternatives
• Right to respond: You have 30 days to file an answer to the lawsuit
• Right to reinstatement: Check your mortgage—many include a clause letting you catch up on payments
• Right to redemption: You can pay off the full debt before the sale

Can You Really Sell During Foreclosure?

Absolutely. Until the auctioneer’s hammer falls at the foreclosure sale, you retain ownership and can sell your home.

In fact, selling is often your best option because:

• You avoid a foreclosure on your credit report
• You might walk away with cash if you have equity
• You control the sale price and terms
• You prevent a deficiency judgment

The Deficiency Judgment Problem

In South Carolina, lenders can pursue a deficiency judgment—meaning they can sue you for the difference between what you owe and what the property sells for at auction.

Example: You owe $250,000. The house sells at auction for $200,000. The lender can sue you for the $50,000 difference plus attorney fees and costs.

However: If you sell the property yourself for $240,000, you owe much less and avoid the judgment altogether.

How to Sell Your Home Fast

Option 1: Traditional Sale with an Agent
Works if you have equity and 2-3 months available. Your agent markets the property and finds the best price.

Option 2: Cash Home Buyer
Closes in 7-14 days with no repairs needed. You get less money but avoid foreclosure entirely.

Option 3: Short Sale
If you owe more than the home is worth, your lender might accept less than the full amount. Requires lender approval but still better than foreclosure.

What If You’re Underwater?

“Underwater” means you owe more than your home is worth. In Myrtle Beach’s market, this is less common now, but it happens.

Your options:

• Short sale: Bank agrees to take less than you owe
• Deed in lieu: You voluntarily transfer ownership to the lender
• Cash contribution: Bring money to closing to cover the difference

Steps to Take RIGHT NOW

1. Contact Your Lender Immediately
Ask about loss mitigation options:

• Loan modification (reduce payments)
• Forbearance (temporary payment pause)
• Repayment plan (catch up over time)

Federal law requires your servicer to offer these before foreclosing.

2. Respond to the Lawsuit
If you’ve been served, file an answer within 30 days. Consult a foreclosure defense attorney—many offer free consultations.

3. Get Your Home’s Value
Contact local real estate agents for a Comparative Market Analysis (CMA) or use online estimators. Know what you can realistically sell for.

4. Act Fast
Every day counts. Contact cash buyers, list with an agent, or explore short sales immediately.

The “Upset Bid” Period

If the property goes to auction and the lender seeks a deficiency judgment, South Carolina law creates a 30-day “upset bid” period. During this time, someone can make a higher bid and become the winning bidder.

However, many lenders waive deficiency rights to avoid this delay. Ask your attorney about this.

Avoid Foreclosure Rescue Scams

Be wary of:

• Companies demanding upfront fees
• “Investors” asking you to deed the property to them
• Anyone promising to stop foreclosure for a fee
• Pressure to sign documents you don’t understand

Work with: Licensed real estate agents, HUD-approved housing counselors, and attorneys.

Resources to Help You

• SC Homeownership Resource Center: (800) 320-0350 (free help)
• SC Appleseed Legal Justice: www.scjustice.org (foreclosure info)
• Horry County Legal Aid: Free legal assistance for qualifying residents
• HUD Housing Counseling: www.hud.gov (find approved counselors)

Your Credit After Foreclosure

Foreclosure devastates your credit (200+ point drop) and stays on your report for 7 years. Selling before the sale helps preserve your credit score and makes buying another home easier in the future.

Take Action Today

If you’re facing foreclosure in Myrtle Beach, don’t wait until it’s too late. You have options, rights, and time—but only if you act now.

Contact a local real estate professional, consult a foreclosure attorney, and explore all your alternatives. Thousands of South Carolina homeowners successfully avoid foreclosure every year by taking action early.

Your home isn’t lost yet. Make your move today.