What Is Foreclosure? How It Works for Homeowners in Myrtle Beach, SC
If you own a home in Myrtle Beach or anywhere on the Grand Strand and you've fallen behind on your mortgage, the word "foreclosure" can feel overwhelming. The process has rules and deadlines, though, and knowing them gives you room to make decisions instead of having them made for you.
Foreclosure is the legal process a lender uses to collect on a mortgage by selling the home when the homeowner stops making payments. The Consumer Financial Protection Bureau (CFPB) describes it as the lender taking action "to satisfy the homeowner's debt out of the sale of collateral (the homeowner's property)." (CFPB)
In South Carolina, foreclosure goes through the court system, and here in Horry County the sale is held by the Master-in-Equity in Conway. Below, I'll walk through each step, what it can mean for any remaining balance, your taxes, and your credit, and the options many homeowners don't realize they still have, including selling the home themselves.
Quick Answer
Foreclosure is when a lender takes a home and sells it to pay off a mortgage the homeowner hasn't been able to pay. In South Carolina, the lender has to file a lawsuit, and the home is sold at a public auction run by the county's Master-in-Equity, a judge who handles these cases. Federal rules generally keep the legal process from starting until you are at least 120 days behind, and until the sale you may still have options, such as a loan modification, a short sale, or a traditional sale. Talk with your servicer, a free HUD-approved housing counselor, and a South Carolina real estate attorney as early as you can.
I've worked with sellers and buyers since I was licensed in 2006, and I spent more than 17 years running a home improvement and contracting company that did new builds and fix and flips. That background shapes how I look at a home's condition and pricing when a seller is working against a deadline.
What Does Foreclosure Mean in Real Estate?
When you take out a mortgage, the home is the collateral, meaning the lender can look to the home itself to repay the loan if the payments stop. Foreclosure is how the lender does that.
The CFPB explains there are two main types:
Judicial foreclosure goes through a court, "where the borrower can raise defenses."
Non-judicial foreclosure happens without a court case, through a series of required written notices.
South Carolina uses the court process. A foreclosure is filed as a lawsuit in the Court of Common Pleas, and the sale is handled by the Master-in-Equity, which Horry County describes as a division of the South Carolina Circuit Court. (Horry County Master-in-Equity; Fifteenth Judicial Circuit Administrative Order, March 6, 2026)
The party filing a foreclosure isn't always a mortgage lender. The same Horry and Georgetown County court order covers lawsuits to foreclose a homeowners association lien, not just mortgages. If your home is in a community with an HOA, it's worth knowing that an HOA lien can be foreclosed on too. I cover how HOA fees work in Myrtle Beach in a separate post.
How Common Is Foreclosure in South Carolina Right Now?
According to ATTOM's August 2026 U.S. Foreclosure Market Report, published September 17, 2026, South Carolina had the nation's highest foreclosure rate that month:
South Carolina: 1 foreclosure filing for every 1,547 housing units (August 2026) United States: 1 foreclosure filing for every 3,569 housing units (August 2026)
Among larger metro areas, the same report lists Columbia and Charleston among those with the highest rates. The Myrtle Beach metro area was not named in the report. (ATTOM, August 2026 Foreclosure Market Report)
I share these numbers so you know you're not alone if you're facing this, not to predict where the local market is headed.
How Does the Foreclosure Process Work in South Carolina?
Every case is different, and a real estate attorney can tell you exactly where yours stands. Here is the general order of events, based on federal rules and South Carolina and county sources.
1. Missed payments and the 120-day window. The CFPB says that generally, "the legal foreclosure process can't start until you are at least 120 days behind on your mortgage." (CFPB, reviewed January 2, 2025) This early stretch is often called pre-foreclosure, and it's the best time to talk with your servicer (the company you send payments to).
2. The lawsuit is filed. Because South Carolina uses judicial foreclosure, the lender files a case in the Court of Common Pleas. Read every notice you get. The CFPB's advice is simple: "act promptly on notices you receive." (CFPB)
3. The case goes to the Master-in-Equity. Under a March 6, 2026 order for Horry and Georgetown Counties, a mortgage or HOA lien foreclosure that has been pending for six months without an order sending it to the Master-in-Equity is automatically referred there. (Administrative Order)
4. The foreclosure sale. The Master-in-Equity sells the home at a public auction, held once a month in both Horry and Georgetown Counties. The dates and locations are below.
5. The 30-day upset bid period (in some cases). If the lender is asking for a deficiency judgment (more on that below), South Carolina law says the bidding does not close on the day of the sale. It stays open until the thirtieth day after the sale, and other bidders can top the high bid during that time. (SC Code § 15-39-720) Horry County calls this the Upset Bid Sale, and the lender can't bid in it. (Horry County Upset Bid Sales) If the lender has waived any deficiency, the advertisement has to say so, and the bidding does not stay open after the sale. (SC Code § 15-39-760)
When and Where Are Foreclosure Sales Held in Horry and Georgetown Counties?
Horry County: 11:00 a.m. on the first Monday of each month (the next day if that Monday is a holiday), at 1301 Second Avenue, Conway. (Horry County Master-in-Equity)
Georgetown County: noon on the first Monday of each month, in the Master-in-Equity courtroom at the Georgetown County Judicial Center, 401 Cleland Street, Georgetown. (Georgetown County)
Horry County posts its sale listings and court rosters on the South Carolina Public Index.
Could I Still Owe Money After a Foreclosure in South Carolina?
Possibly. If the sale brings in less than you owe, the gap is called a deficiency, and South Carolina law allows the court to order the borrower to pay "any residue of the mortgage debt that may remain unsatisfied after a sale" when the borrower is personally liable for the debt. (SC Code § 29-3-660)
South Carolina also gives homeowners a protection many people have never heard of. If a personal judgment is taken or asked for, you can apply to the clerk of court within 30 days after the sale for an appraisal of the home. (SC Code § 29-3-680) The appraisal is done by three disinterested state-certified or state-licensed appraisers (SC Code § 29-3-700), and the statute says the court-approved appraisal value "would be substituted for the high bid and may decrease the amount of any deficiency owing."
That 30-day deadline is short, so if a deficiency is in play, talk with a South Carolina real estate attorney right away.
How Does Foreclosure Affect My Taxes?
The IRS treats a foreclosure as a sale of the property for tax purposes. (IRS Publication 4681, 2025) And if part of the debt is canceled, the IRS says the canceled amount is generally taxable, and the lender may send you a Form 1099-C. (IRS Topic 431, updated September 24, 2026)
A special exclusion used to cover canceled mortgage debt on a main home, but the IRS says it applies only to debt discharged before January 1, 2026, or under a written arrangement entered into before that date. Other exclusions, such as insolvency, may still apply. A tax professional can tell you what fits your situation.
How Does Foreclosure Affect My Credit and Buying Again?
The CFPB says foreclosure "will hurt your credit," and that foreclosure information generally stays on your credit report for seven years from the date of the foreclosure. It's still possible to qualify for a mortgage later. (CFPB, reviewed September 11, 2024)
Waiting periods depend on the loan. For a conventional loan that follows Fannie Mae's guidelines, the waiting period is seven years from the date the foreclosure was completed, or three years if extenuating circumstances can be documented. (Fannie Mae Selling Guide B3-5.3-07) Other loan types have their own rules.
If you have a VA loan: VA encourages veterans to contact their servicer as soon as they think they may have trouble making a payment, and lists options such as special forbearance, repayment plans, loan modification, partial claims, short sales, and deed in lieu of foreclosure. You can reach a VA loan technician at 877-827-3702. (VA News, August 13, 2026)
What Are My Options Before the Foreclosure Sale?
The CFPB groups the options into two sets. To stay in your home: refinancing, a loan modification (changing the terms of your loan), or forbearance (payments paused or reduced for a limited time). To leave your home: selling it, a short sale, or a deed in lieu of foreclosure (voluntarily handing ownership of the home to the servicer). The CFPB says the options for leaving your home are "typically less expensive and take less time than foreclosure" and "can also do less damage to your credit." (CFPB, updated December 12, 2024)
Timing matters. The CFPB says to make sure your servicer receives your complete application for help more than 37 days before a scheduled foreclosure sale. If it arrives later, the servicer doesn't necessarily have to review it. (CFPB, reviewed April 3, 2024)
Free help is available. SC Housing says free HUD-approved housing counselors work at 17 nonprofit or government agencies across South Carolina, including in Myrtle Beach, and points homeowners to HUD's counselor search for South Carolina. The HOPE Hotline, 888-995-HOPE (4673), is also available. (SC Housing)
One caution: the Federal Trade Commission warns that scammers demand payment upfront, which is illegal, may try to get you to transfer your deed to them, and that no company can tell you to stop talking to your lender. (FTC, updated December 9, 2025)
Can Selling My Home Be Better Than Letting It Go to Foreclosure?
For homeowners who have equity, meaning the home is worth more than they owe, it can be. The CFPB has written that "a traditional sale could be a better alternative to foreclosure" for struggling borrowers with equity, since selling can avoid the costs of foreclosure and the long-term credit damage. (CFPB blog, January 20, 2023)
A traditional sale also looks very different to buyers than a courthouse auction. Horry County tells foreclosure bidders that it does not have keys and does not guarantee the title, that the Master's Deed is not a warranty deed, and that bidders should get an attorney's title certification before bidding. (Horry County Bidder Information) In a regular listing, buyers can tour the home, schedule inspections, and buy title insurance at closing.
When you sell, the sale price pays off your mortgage and your closing costs, and what's left over comes to you as net proceeds. A good first step is asking your servicer for a mortgage payoff figure, so you know exactly what a sale would need to cover.
An Example Scenario
Here's a common scenario, using round numbers for illustration only. Imagine a homeowner who is several months behind, owes about $250,000 including missed payments and fees, and has a home that recent comparable sales suggest would sell for around $325,000.
If that homeowner lists the home before the foreclosure sale date and closes a sale, the proceeds pay off the loan and closing costs, and whatever remains goes to the seller. If the home goes to the Master-in-Equity sale instead, the price is set by the bidding at that sale. Whether a sale is realistic depends on the timeline, the lender's cooperation, and the market, which is why it's worth getting advice early rather than waiting.
How Long Does Foreclosure Take in South Carolina?
There's no single timeline. Federal rules generally keep the legal process from starting until you're at least 120 days behind, and after that the timing depends on the court case, the county's monthly sale schedule, and whether bidding stays open for 30 days after the sale. Your attorney or servicer can tell you where your case stands.
Can I Sell My House If It's in Foreclosure in South Carolina?
It can be. The CFPB lists selling your home as one of the options to discuss with your servicer, and a sale that closes before the foreclosure sale can pay off the loan if the price covers what you owe. If the price won't cover the loan, a short sale needs your lender's approval. Because timing is tight, tell your servicer and your attorney right away if you plan to sell.
Do I Need an Attorney for a Foreclosure in South Carolina?
Because South Carolina foreclosures go through the court, a real estate attorney can explain your rights, your deadlines, and any defenses. If you sell instead, an attorney will still be involved, since the South Carolina Supreme Court has held that real estate closings should be conducted only under an attorney's supervision. (Doe v. McMaster, S.C. Supreme Court, 2003)
What Is the Difference Between Foreclosure and a Short Sale?
In a foreclosure, the lender goes to court and the home is sold at auction. In a short sale, you sell the home yourself for less than you owe, with your lender's approval. The CFPB says a short sale can do less damage to your credit than a foreclosure. (CFPB) I cover it in detail in my post on how a short sale works for Myrtle Beach sellers.
Final Thoughts
Foreclosure in South Carolina is a court process with real deadlines, including a 30-day window after the sale in some cases. It's also a process with options along the way, especially early on. The most important steps are opening your mail, contacting your servicer, and getting free counseling and legal advice as early as you can.
If you're weighing whether selling makes sense, it comes down to two numbers: what you owe, and what your home would likely sell for today. You can get a quick estimate at easyhomevaluenow.com, or if you'd rather look at both numbers together privately, book a Zoom call with me or call or text me at (843) 385-6630. No pressure, just clear information.
The information in this article is for general educational purposes and is not legal, tax, or financial advice. Market conditions change, so please confirm details with the appropriate professional before making decisions. Beach Properties Group, Keller Williams Innovate South, 601 21st Ave N, Myrtle Beach, SC 29577, (843) 443-9400. Each office is independently owned and operated. Equal Housing Opportunity.
Brian Staub is a real estate agent in Myrtle Beach, South Carolina helping homeowners sell with clarity and confidence.
Brian Staub Beach Properties Group Keller Williams 601 21st Ave N, Myrtle Beach, SC 29577 (843) 385-6630 [email protected] https://beachpropertiesgroup.com/
