South Carolina’s Foreclosure Prevention Efforts
For 2009, South Carolina ranked 25th among all states in foreclosure rate, an increase of 67.81% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.
In South Carolina foreclosures are judicial. The lender must first file a complaint in court against the homeowner. The court gives the borrower a set period to pay the delinquent amount plus expenses, or orders the property to be sold.
The notice of sale must be posted at the courthouse door and two other public places at least three weeks prior to the sale date. The sale must also be advertised in a local paper during this same time frame.
The auction is conducted by the sheriff at the local courthouse. After the auction is finished, bids may be accepted for a full 30 days after the sale. The buyer with the highest bid in this period gets the property.
Deficiency judgments are allowed.
In May of 2009, the South Carolina’s Supreme Court Chief Justice Jean Total lifted a temporary injunction on selling foreclosed homes in the state. She instituted procedures to ensure that foreclosures will be handled equally and uniformly, including requiring the plaintiffs in foreclosures to inform the defendants if their loans are eligible for modification under federal programs.
The South Carolina State Housing Finance & Development Authority offers these foreclosure avoidance tips
- Don’t ignore the problem.
- Contact your lender as soon as you realize that you have a problem.
- Open and respond to all mail from your lender.
- Know your mortgage rights.
- Understand foreclosure prevention options.
- Contact a US Department of Housing and Urban Development HUD-approved housing counselor. Or call toll free for a referral (800) 569-4287 or TTY (800) 877-8339.
- Prioritize your spending.
- Use your assets.
- Avoid foreclosure prevention companies. Some are legitimate loss mitigation efforts, but if one demands a large upfront fee, go elsewhere.
- Don’t lose your house to foreclosure recovery scams!
The authority urges distressed borrowers to call 888-995-HOPE a free, high-quality foreclosure counseling hot line.
The state offers this guide to avoiding mortgage fraud.
South Carolina Legal Services, SCLS, provides free legal help to low income South Carolinians in civil legal matters including foreclosures. Here’s an informative SCLS PowerPoint presentation in PDF.
