Hilton Head Island Real Estate Foreclosures

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Hilton Head Island real estate clients commonly say “I’m looking for a foreclosure or short sale.” The truth is foreclosures and or short sales are not necessarily the best deals out there. Short sales are distressed properties that, more often or not, were purchased in the “peak buying years” of 2005 or 2006. For whatever reasons, unfortunately, the seller needs to get out. They owe more than the property may be able to sell for under contract & they are “short” of funds to pay the mortgage off to the bank. Needless to say, the banks are getting “swamped” with short sales and have been slow with keeping up with the process. That’s one reason why if an offer is submitted to the bank, it may be months before the bank even responds or acknowledges the offer. There are “Major Hoops” to jump through on these deals. Some issues to consider during the “waiting period” are that if you need financing, the interest rates may go up during the process, or if you have locked a low interest rate, it may expire before the closing. Another issue is, unfortunately, when sellers realize they are “in trouble” & need to do a short sale (or worse yet it goes into foreclosure) they may not be able to keep up the property properly & you need to know ~ you are buying these homes & condos “AS IS” with no repairs or warranties being done. That is a major issue when buying a property.

More importantly, why buy a distressed Hilton Head foreclosure property if you can get a better deal with a “normal” property for sale? One very important factor is there are many properties listed for sale that were purchased well before the “higher buying times” of 2005 or 2006 & the seller owns the properties for less & the mortgage (if any) is less. These sellers can afford to sell their properties for even Less than a short sale or foreclosure. By buying one of these properties, you can close in a “normal” period of time ~ (so you can use it more or bring in more rental income sooner!) & not having to “jump through all the proverbial hoops” & repairs can be made & warranties would be in place.

Perspective Buyers shouldn’t just be “locked in” to Hilton Head Island foreclosures, they should be focusing in on great value. These are times for great buys on Hilton Head Island! Foreclosure properties range come in all shapes and sizes and in all property types and price ranges. Our Hilton Head real estate agents are experienced with foreclosure properties and we would be happy to answer any questions that you may have.