Smart buyers know that there are numerous ways to purchase foreclosed real estate in Myrtle Beach. Each option differs greatly in how you’ll get the best deal. Buying a foreclosure on the courthouse steps is radically different from using a Myrtle Beach Realtor to help get you the best deal on a foreclosure listing in our MLS.

What many people don’t know is that there is an increasing number of Myrtle Beach real estate listings right now that are being advertised to the public as foreclosures – but they aren’t really foreclosures.

Well… let me rephrase. The property WAS foreclosed on. But the seller purchased the property as a foreclosure and is trying to sell it to you – obviously at a higher price. The property might still be a good deal – but not nearly as good a deal as when he bought it!

How can you avoid this?

That’s easy. Almost all lenders will list their foreclosed properties with a real estate company on the MLS. And South Carolina real estate law says that the real estate company must identify itself in all advertising. So… if you see a foreclosure listing that doesn’t include the name of a real estate company… walk away.

Once you’ve verified that the property is listed with a real estate company, should you call them? Not necessarily! Always remember Real Estate Rule Number Two: Who’s Got Your Back? (Real Estate Rule Number One is Location! Location! Location!)

Real Estate Rule Number Two is is very important, especially with foreclosures. Many buyers are shocked at the scope of paperwork thrown at them by banks and other entities like Fannie Mae and Freddie Mac. A qualified foreclosure specialist can help navigate through the quagmire of foreclosures and help you find the best deal – and then help you negotiate with the lender for an even better deal! This will give you an edge over other foreclosure buyers. And an edge is exactly what you need.

In my next blog post, we’ll talk about more strategies to increase your edge over other buyers.

South Carolina’s highest court on Tuesday temporarily stopped thousands of pending foreclosure sales to give homeowners more time to take advantage of a new federal program to help them refinance their mortgages.

The injunction – which mortgage experts said appeared to be the nation’s first court-ordered stop for an entire state – prevents judges in South Carolina from finalizing foreclosure sales on properties guaranteed by Freddie Mac, Fannie Mae or any other mortgage company that has signed on to a federal assistance program.

The ruling was in response to a request from a Columbia attorney representing Fannie Mae, who had argued that it was necessary to keep homeowners who might be eligible for federal assistance from being shut out of the process.

Thanks to Myrtle Beach ICE Award-winning attorney Juliet Casper and AP writer Meg Kinnard for this story.

With the number of foreclosed properties in Myrtle Beach on the increase, it makes sense to include them in your search for the perfect purchase.  But buying a foreclosed property, especially in today’s financial environment, is very different from what you may be familiar with.  We’ve watched a lot of folks make dumb mistakes buying bank-owned real estate, and we have a few suggestions on avoiding their mistakes:

Mistake Number One – Using Emotion. When buying a foreclosure, you’re not negotiating with a private owner who has an emotional attachment to their property. You’re dealing with a bank who wants to sell the property fast, for the most money possible.

Mistake Number Two – Not Lining Up Financing In Advance. In the “good old days” you could negotiate your price on a property, and then go get a loan.  Today, Myrtle Beach foreclosures owned by banks won’t even talk to you unless you are paying cash (and can prove it) or until you have been fully approved for a loan – and some banks even demand that you be approved by them.

Mistake Number Three – Paralysis of Analysis. Know in advance what you want to buy, and create a checklist of acceptable ranges.  For example, if you want a 1,600 square foot home, would 1,600 square feet be acceptable if the price is right?  If you want to purchase a four-bedroom home, would a three bedroom home that also has a bonus room be acceptable?  Then, when something meets your checklist, be prepared to move quickly.  Despite what the media would lead you to believe, multiple-offer situations have returned on especially great deals.

Mistake Number Four – Casting Too Wide a Net. Having too many properties to choose from often induces Paralysis of Analysis.  Don’t make the mistake of looking at all of the foreclosures in Myrtle Beach.  Decide (in advance) in which neighborhoods you want to own, and don’t go chasing everything on price.  This is where the expertise of an experienced Realtor can help.

Mistake Number Five – Ostrich Syndrome. Never assume that “the bank wouldn’t DO that!”   Remember, the bank doesn’t care about the property. They only care about getting as much of their money back as they can, in order to satisfy their shareholders and the government.  Most banks won’t pay for repairs, offer a home warranty or complete a seller’s disclosure statement.  You’re buying the property as-is, and you had better be prepared for whatever repairs are necessary.

Mistake Number Six – Ready, Fire, Aim. Can’t find exactly what you want?  Be patient… once you have your checklist, stick to it. Then, when the right property becomes available, be ready to pounce.

Mistake Number Seven – Being The Lone Ranger.  Don’t go it alone.  The help of an experienced Realtor or Real Estate team can be the difference between success and disaster.  Call Price & Company Realty at 843.272.1266 and let’s get started today.