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Charleston Real Estate Law Blog

Basic tips for preventing foreclosure

If you receive a foreclosure notice from your lender, it's imperative that you get serious about your situation. The longer you ignore this the worse your situation will become.

Although you may feel that your home is already lost, nothing could be further from the truth. There are some basic tips you can follow to prevent foreclosure.

You can move your home sale along quickly without legal errors

If you think you don't need a lawyer when you're selling your home, you are likely mistaken. This is the largest sale that you're likely to make in your lifetime; it has the potential to make you money if it goes through correctly. There are a number of legal mistakes you could make if you're unfamiliar with real estate law, and they could result in a delayed sale or even the loss of a sale. Here's some important information on who you may want to work with.

What are Real Property Specialists?

Are short sale rules changing?

If you've considered pursuing a short sale to get yourself out of mortgage debt in the past, news that short sale rules are changing is probably welcome. The new short sale rules can help you, because they have made the short sale process faster. Lenders who receive your RASS document now have to respond within 10 years. If you have a sale that works out and the buyer closes, then you will be eligible for a relocation incentive, too. As of the last update, the incentive was $3,000.

Why does speed matter?

A short sale could be the solution to your debt problems

If you're in a position where a foreclosure may be imminent, know that you might have another way out. A short sale is when a lender determines that it will accept a mortgage payoff that is less than what you owe; when you're in financial stress, this may be one of the best options open to you. You need to make sure that the lender agrees to forgive any remaining debt if you agree to a short sale price, because otherwise you could be left paying the difference between what you owe now and the sale price of your home.

As the seller, you may hope to sell the home for a profit or even to break even. That might not be a possibility, so resolving your debt may be the next best solution. A short sale allows you to do that without taking on debt for a home that you no longer live in. Of course, you will lose your home, but you won't have a foreclosure on your credit report. Your credit may still take a hit, but the lender may help reduce that hit by negotiating with you.

Foreclosure: The result of defaulting

Foreclosure is not just the auction of a home. It's actually a legal right of a mortgage holder if the property is not being paid for as designated by the loan. If the lien is in default, a foreclosure gives the mortgage holder the best chance of making up lost funds.

Many years ago, it was the case that a mortgage would automatically revert to the lien holder in the case that the mortgagee was not keeping up on payments. That has changed today, and people are now given more time to pay off their mortgages and to get caught up on payments. Foreclosures are typically a last ditch effort on the part of the lien holder to make up funds; usually, they'd rather keep someone in the home and receive payments over time, so they can make more than at auction.

Purchasing versus leasing: The benefits of each in real estate

When you're considering whether you want to lease or purchase a facility for your business, you need to consider a number of possible benefits for each. Leasing can be a great option for new businesses, but owning a building can also be a long-term investment. Here are some possible benefits to consider for leasing or owning a property.

The main advantage of leasing is that it costs less up front, which is good if you're only starting the business now and have limited funds. If you don't have a credit rating good enough to support a mortgage, leasing can also be a positive option for your business. Rent is deductible as a business expense, so the tax implications are positive. The landlord must maintain the property, and you may be able to obtain a lease well below what you'd expect to pay for a mortgage.

Stopping foreclosure: Avoid losing your home with these options

If you've received a foreclosure notice, you may think that the end of your time as a homeowner has been decided. However, it's important to know that you can fight a foreclosure and stop the foreclosure process in a number of ways.

For instance, if you can work out a way to catch up your mortgage before your home goes to auction, most lenders would prefer you do that. When a home is sold as a foreclosure, it's less likely to earn back the amount you'd be spending with continued payments, making the home a higher risk for the lender.

Mega-developments to arrive in Charleston

If you're living in South Carolina in the Charleston metro area, prepare for some new developments in your area. According to the news, town homes could be built to house around 200,000 people in 11 different locations, a huge influx for the area.

That amount of housing is enough to house the current population of Mount Pleasant and North Charleston, which are among the largest cities in the state. What's provoking these super-sized residential developments? The agencies that had the developments approved want to see long-term payback by moving people into the area.

South Carolina's foreclosure forecast: Dropping foreclosure rates

Living through the recession, you know that foreclosures became all too common across the United States. If you've been fighting to keep your home, there are ways to do so through bankruptcy and other methods, but some good news about the economy's improvement is also welcome.

South Carolina is growing stronger economically, if recent foreclosure rate reports are considered. A June 28 report states that on the April 2016 national report, the foreclosure inventory rate had dropped to 1.1 percent. That was a 12.4 percent drop from April 2015.

You can speed up your short sale with an experienced attorney

When you're trying to get out of debt, one of the options you may have is to sell your home in a short sale. This sale allows you to sell your home for less than you have remaining on your mortgage. Why might this be necessary? If you owe more than your home is worth, a short sale may be the only way you can get out of your home without owing for the deficit of the sale.

Short sales are slow processes, because each offer needs to go to the bank and lender to determine if it will be accepted. Your home will need to be evaluated and valued; the price that it's worth will be compared to what you owe and the amount being offered by a potential buyer.

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