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Foreclosure Crisis in South Carolina

By john | July 23, 2008

People in South Carolina are not receiving many help from the local government in saving their homes falling prey to foreclosures. Statistics show a drastic increase in South Carolina foreclosure homes over a period. The number of foreclosure homes in South Carolina last month was 1063. It means that there was a foreclosure home in 1,859 households in the state, as reported by RealtyTrac whose business is selling data to investors and mortgage lenders. The June default rate in South Carolina was 168 per cent higher than same month last year. One of the highest foreclosure rates in South Carolina is shown by Lexington County with one out of every 468 homeowner facing a default. This is three times the rate when in comparison to June 2007.

South Carolina

Government officers and industry leaders have taken collective decisions to assist the increasing problem of foreclosure homes in South Carolina. A housing relief bill was voted 63-5 by Senate authorizing Federal Housing Authority to insure 300 billion worth of mortgages. The initiative is basically taken to help people save their households from turning into foreclosed homes. Community welfare organizations also play a role in this scheme in which they identify the homeowners who face a danger of foreclosure and then negotiate with the lender to purchase the loan. Some of the amount is written of by the lenders and the homes are being saved from being foreclosed. The homeowners thus become renters in such homes. The rent paid to the community organizations is negligible and is so designed depending on the financial stability of the family.

Head of the South Carolina Apple seed Legal Justice center in Columbia, Sue Berkowitz feels that the increasing problem of Foreclosure homes in South Carolina though not severe, is consistent. Berkowitz and other consumer advocates said that South Carolina Attorney General Henry McMaster was unable to prosecute the predatory lenders who had been cheating on homeowners. Attorney General’s spokesperson denied this and said that the state law has always protected the people from unfair practices.

There have been several cases of mortgage mal practices contributing to foreclosure homes in South Carolina. Attorney Generals in other states are known to encourage collaborations between lenders, banks and community organizations to assist people save their homes. To prevent this, strict systems needs to be in place in the county.

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Topics: Foreclosure Crisis | 1 Comment »

One Response to “Foreclosure Crisis in South Carolina”

  1. slovelane@aol.com Says:
    September 12th, 2008 at 5:08 am

    My friend home was auctioned August 4,2008 She tried to get her loan reinstated the day of the sale she was $875.00 short she had $7,800.00 she talked to the attorney at Rogers, Townsend who was representing the bank he told her that that was not enough, she had requested payoff and reinstatement figures up to July 30,2008 they sent her figures up to July 10,2008 for reinstatement and July 24,2008 for payoff,had they told her the amount up to July 30,2008 my friend who still be in her home. Then the day after the auction we came to her house a man was in her house and said he was there to re-key the locks and he did, gave her the code and the realtor card who he worked for. she found another house in the same neighborhood, lease option to buy, $3,000.00 down which was no problem but they do a credit check, she say her credit is bad. I think it is sad when they say they are attempting to collect a debt, but do not accept that amount of money.

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