The foreclosure process begins when the lender files a public default notice, called a Notice of Default or Lis Pendens. Most mortgage companies will only allow a 30 day past due period before they file for repossession. Several things can happen during the foreclosure proceedings:
There is a grace period at first, where the owner can refinance or pay the past due amount. This is called the "pre-foreclosure" period.
Sometimes the owner can sell the property during this grace period and avoid having the foreclosure process take place, damaging their credit rating for many years. This is known as a short-sale. There are many Myrtle Beach short sales listed for sale in our MLS at this time.
The Owner can try to short-sell the property outright, through a real estate agent, or in a private real estate auction.
When the pre-foreclosure period is over, the banks are forced to sell the property at public auction, or occasionally they will purchase the property themselves, either in an agreement with the borrower, or at the auction. The property is then said to be bank-owned, or an REO Property, which is real estate owned by the mortgage lender.
