Explaining Short Sales
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 a foreclosure 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.
