Over the past few years a lot of information has been written about short sales, foreclosures, strategic defaults, deed-in-lieu and other forms of getting out from under an underwater property. South Carolina Homeowner’s often asked why they should attempt a difficult short sale when they could just stay until the bank finally forecloses, years in some cases. The main reason “Deficiency” (the amount of loss the bank incurs) this does not go away in the case of foreclosure. The bank can come after the homeowners for years after the foreclosure. The deficiency accrues interest in the interim. The bank has five years to file the deficiency action and then has years to pursue the debt even if the homeowner moves to another state. They may be able to garnish wages, attach bank accounts and even seize property. Great article on the subject here.
In a short sale, there is the chance of either having the deficiency waived or replacing the original promissory note secured by the property with an unsecured and likely smaller note. I read a great article from attorney Richard Zaretsky on the differences in foreclosures, short sales, and deeds-in-lieu a link to a great article of explanation
If you’re a South Carolina homeowner in a situation where you can’t or don’t want to continue making your payments, don’t just sit there waiting for the bank to knock on the door. The consequences of inaction could haunt you for a very long time.
If you have questions or are looking for answers please visit Columbia Foreclosure Relief