Hilton Head Island Foreclosures For Sale
Welcome to our foreclosure and short sale section of the Hilton Head Island real estate market. Hilton Head Island is somewhat an anomaly when it comes to today's market in experiencing the foreclosure boom that is happening across the country. The reason for this is that people who purchase property in the area are of a more affluent background than in most areas of the country. We cater to business owners, professional practitioners and high level corporate employees. The national average is 1 in every 430 homes are in some form of foreclosure where on Hilton Head Island the ratio is 1 in every 1200 properties on Beaufort County. This will have an overall positive impact on our area as it relates to a market rebound because we have so few properties in distress and therefore will have to see fewer sales in order to retract from the current market trend.
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Foreclosure Real Estate Listings For Sale In Hilton Head Island, SC
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The differences between a short sale and a foreclosure are vast. A short sale is when the property owner can no longer afford to pay the bank on the debt that is owed while the market for the property has declined below what is owed on the property. The owner then negotiates what is called a "short sale" on the property where the bank agrees to accept less than what is owed on the property from a suitable buyer. A foreclosure is when no terms can be met between the owner and the bank to sell the property and therefore the property goes to a court proceeding where the property is auctioned off to the highest bidder, generally the bank holding the note on the property. This is when the property transfers ownership to the bank away from the property owner and this process is called a foreclosure sale. Now the bank has all right to the property and can do as they see fit with the property which ultimately ends up on the market for sale. In either case the owner could be liable for any deficiency between the sale price and what is owed or the bank may opt to waive this deficiency in some cases.
In either case of a short sale or a foreclosure you, the buyer, must know that in order to purchase one of these types of properties there are a few requirements and a few things you should understand. In either case you MUST be preapproved from a local lender for the purchase price of the property. There is also an absolute requirement to place 3% of the purchase price down as good faith towards the purchase. You have the right to any and all inspections within a 10 day period in which you will determine if you wish to purchase the property or not. In both cases you are purchasing the property "as is where is" as the banks will not make any repairs. There may be certain instances where you could be liable for any liens on the property if it is a short sale. However in a foreclosure the bank must offer a clear title through the foreclosure proceeding.
As a market trend we are seeing one major factor in today's market and what looks to be the trend going forward: The short sale and foreclosure new listings are slowing and in the markets where we have seen them priced 30% below competing properties, those properties that remain after these are sold, are keeping their prices up versus chasing these market prices. Example: one near ocean complex had 2 foreclosures priced $130,000 ($369,000) ahead of the other units on the market. Those properties are now sold and the next best property is priced at $499,000. The opportunity in that market has been missed and we expect to see this trend more and more this year. To receive a list of Hilton Head Island foreclosure and short sales in the area, please fill out a contact form below specifying what type of property you are interested in and in what price range and we will get a full list to you shortly.