Foreclosure halt expected to have little effect in Beaufort County, local experts say
South Carolina homeowners facing foreclosure are getting a brief reprieve.
Some people involved in the process, however, are unsure how much that will reduce the torrent of foreclosures in Beaufort County, which had the highest foreclosure rate in the state in the first quarter of 2011.
The S.C. Supreme Court last week ordered a temporary halt in foreclosures on owner-occupied homes.
The order, which took effect Monday and remains unless amended or rescinded by the state's chief justice, is aimed at helping borrowers work out loan-modification plans with lenders.
Under the order, attorneys for lenders who want to foreclose are required to certify that the borrower was notified of the right to seek a loan modification, had a fair opportunity to respond and that the lender received and examined all documents and records required from the borrower to evaluate eligibility for foreclosure intervention.
Or they could certify after 30 days that the borrower refused to participate, and only then could the foreclosure proceed.
The order could help some people stay in their homes, but its impact probably will be limited in coastal areas that have fewer owner-occupied homes and more second homes and investment properties, said Ryan Bassett, owner of hiltonheadforeclosures.com and a Realtor with Charter One Realty.
"Unfortunately, I don't know that it will solve the problem," Bassett said.
On Hilton Head Island, for example, less than half the homes and condos sold in May's foreclosure auction were listed in tax records as primary residences, he said.