South Carolina Foreclosures in 2026: What We're Seeing Across the Grand Strand and Pee Dee

If you've recently seen headlines about foreclosures increasing in South Carolina, you may be wondering what those numbers really mean.

The latest data deserves attention — but it also needs context.

In July 2026, 1,172 South Carolina properties had a foreclosure filing, representing approximately 1 in every 2,085 housing units. That placed South Carolina second among states for foreclosure rate that month. Nationwide, foreclosure activity was up 10% compared with July 2025, while completed foreclosures resulting in REO properties increased 23% year over year.

Those numbers may sound alarming. However, ATTOM also reports that overall foreclosure activity remains below pre-pandemic norms.

So, are foreclosures increasing? Yes.

Does that mean every South Carolina market is experiencing the same thing — or that we are suddenly returning to the foreclosure conditions of the last housing crisis? No.

Real Estate Is Local — And So Is Foreclosure Activity

One of the most important lessons I've learned from working with distressed and bank-owned properties is that statewide statistics never tell the entire story.

Carolina Pines Realty serves nine South Carolina counties: Horry, Georgetown, Marion, Williamsburg, Florence, Darlington, Dillon, Marlboro and Lee.

These markets are remarkably different.

Horry County has a large housing inventory encompassing everything from primary residences and investment properties to second homes and vacation properties. Florence serves as an important economic center for the Pee Dee. Our smaller rural counties have completely different housing inventories, employment bases, property values and buyer pools.

As a result, foreclosure activity in one county should not automatically be interpreted the same way in another.

A smaller rural county can experience relatively high foreclosure risk even though the number of affected properties is fairly small. Conversely, a large market such as Horry County can produce more foreclosure filings simply because it contains many more housing units.

That's why I look beyond a headline before drawing conclusions about a local market.

A Foreclosure Filing Is NOT the Same as an REO

This may be the most important distinction for homeowners and buyers to understand.

When reports say a property had a “foreclosure filing,” that doesn't necessarily mean the bank now owns the house.

ATTOM's foreclosure statistics include properties in different stages of the process — including default, scheduled auction and REO/bank repossession.

South Carolina foreclosure is a judicial process. Under South Carolina's court rules, foreclosure actions are handled through the courts, and when a foreclosure judgment orders a sale, the property is sold under the direction of the Master-in-Equity or another appropriate court officer.

A simplified progression might look something like:

Mortgage Delinquency → Foreclosure Action → Court Proceedings → Foreclosure Sale → Lender Acquisition (when applicable) → REO/Bank-Owned Property

Not every property travels all the way through that progression.

The South Carolina Judicial Branch also provides procedures for qualifying homeowners to request foreclosure intervention in certain residential cases. The court cautions homeowners that participating in intervention does not guarantee a loan modification or settlement and does not eliminate the need to respond appropriately to a foreclosure action.

That's one reason homeowners experiencing difficulty should seek qualified legal and financial guidance early rather than assuming foreclosure is inevitable.

What Happens When a Property Actually Becomes REO?

When the lender ultimately acquires a property through the foreclosure process, the property may become Real Estate Owned — or REO.

That's where an entirely different part of the process begins.

Before an REO property reaches the traditional real estate market, there can be substantial work behind the scenes.

Depending upon the property and the institution involved, that can include determining occupancy, securing the property, evaluating its condition, addressing health or safety concerns, obtaining a Broker Price Opinion (BPO) or other valuation, coordinating property preservation, reviewing title issues, determining whether repairs are appropriate and developing a marketing strategy.

The goal isn't simply to put a FOR SALE sign in the yard.

The asset has to be properly evaluated, protected and positioned for the local market.

And that local-market component matters tremendously.

An appropriate strategy for an REO property in Myrtle Beach or Conway may be very different from the strategy needed for a property in Florence, Marion, Kingstree, Darlington, Dillon or Bennettsville.

What Does the Increase Mean for Buyers?

An increase in foreclosure activity does not necessarily mean we're about to see a flood of inexpensive bank-owned homes.

Nationally, lenders repossessed 4,764 properties through completed foreclosures in July 2026. Although that was 23% higher than a year earlier, ATTOM describes overall foreclosure volumes as still relatively low by historical standards.

Buyers interested in REO properties should also understand that buying a bank-owned home is different from buying directly from a traditional homeowner.

Condition, disclosures, inspections, financing requirements, utilities, repairs, timelines and seller procedures can all be different.

The word “foreclosure” doesn't automatically mean “bargain.”

The property's condition, location, repair requirements and market value still matter.

What Does This Mean for Homeowners?

For homeowners experiencing financial difficulty, perhaps the most important message is:

Don't wait until the property becomes REO to start asking questions.

There can be multiple stages between missing mortgage payments and a lender ultimately taking ownership.

South Carolina's Judicial Branch specifically advises homeowners involved in foreclosure proceedings not to ignore a Summons and Complaint, even when they are communicating with their lender about possible foreclosure intervention.

Depending on an individual's circumstances, possibilities before foreclosure might involve communication with the mortgage servicer, loss-mitigation alternatives, selling the property conventionally, or potentially considering a short sale when the debt and property value make that appropriate.

Every situation is different, and legal or financial questions should be discussed with the appropriate attorney, lender, tax professional or other qualified adviser.

But doing nothing can dramatically reduce the available options.

What I'm Watching in the Grand Strand and Pee Dee

Throughout the remainder of 2026, I'll be watching several things closely:

Foreclosure filings and completed REOs. An increase in filings is important, but the number that ultimately proceeds to lender ownership tells us something different.

Days on market and inventory. How quickly properties are selling helps determine how both traditional and distressed properties should be positioned.

Differences between our coastal and rural markets. Horry and Georgetown Counties behave very differently from some of our smaller Pee Dee markets.

Property condition. Deferred maintenance can substantially affect both valuation and marketability of distressed properties.

Buyer demand. Investor demand, owner-occupant demand and financing availability can all influence the disposition of an REO asset.

The numbers tell us something.

Local knowledge tells us what those numbers mean.

Experience Matters in a Changing Market

Carolina Pines Realty, Inc. has worked with traditional residential real estate as well as REO/bank-owned properties, HUD properties, short sales, reverse-mortgage foreclosures, BPOs and other distressed-property situations.

I am a Certified Short Sale Expert™ (CSSE) and CDPE, and Carolina Pines Realty works throughout Horry, Georgetown, Marion, Williamsburg, Florence, Darlington, Dillon, Marlboro and Lee Counties.

Whether you're a homeowner trying to understand your options, a buyer considering a bank-owned property, an investor evaluating an opportunity, or an institution with an asset requiring local representation, understanding the specific local market is essential.

Real estate is local. Distressed real estate is no different.

Beth Ross, Broker/Owner
Carolina Pines Realty, Inc.
843-333-6113
843-353-0393
info@carolinapinesrealty.com

This article is provided for general real estate information and is not intended as legal, tax or financial advice. Homeowners facing foreclosure should consult the appropriate qualified professionals regarding their individual circumstances.

Sources: ATTOM's July 2026 U.S. Foreclosure Market Report and South Carolina Judicial Branch foreclosure rules and consumer information.