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The halt foreclosures in SC should impact home prices and may increase short sales in Mount Pleasant and in the Charleston SC area. With no addition of foreclosures to the market, this should help to stabilize home prices, because there will be less bank owned properties entering the market and be sold at prices below the average listed home price. The time is now for first time home buyers to buy before home prices start to rise again and to take advantage of the $8000 First Time Home Buyers Tax Credit.
SC court halts thousands of home foreclosure sales
The Associated Press, 05 May 2009, 04:19 PM ET, COLUMBIA, S.C. - South Carolina's highest court on Tuesday temporarily stopped thousands of pending foreclosure sales in the state to give homeowners more time to take advantage of a new federal program to help them refinance mortgages.
The injunction — which mortgage experts said appeared to be the nation's first court-ordered stop for an entire state — prevents judges in South Carolina from finalizing foreclosure sales on properties guaranteed by Freddie Mac, Fannie Mae or any other mortgage company that has signed on to a federal assistance program.
RealtyTrac Inc., a foreclosure listing firm, says the ruling could affect 5,000 South Carolina homes facing foreclosure.
The ruling was in response to a request from a Columbia attorney representing Fannie Mae, who had argued that it was necessary to keep homeowners who might be eligible for federal assistance from being shut out of the process.
"Absent the injunction, mortgagors eligible for relief ... could be denied their right to participate because their property was sold at the foreclosure sale," lawyer Ronald Scott wrote in his three-page motion. "This qualifies as irreparable injury for which the court should provide redress in the form of a temporary injunction."
Fannie Mae said the ruling was necessary because of a South Carolina law meant to ensure that foreclosures sales are conducted in a timely fashion. Under the law, judges can cancel a foreclosure case and start over if the sale is delayed for too long.
The company argues that South Carolina's law gives lenders an incentive to speed up foreclosure cases because of the threat the process could be restarted, which would cost lenders more money.
"This ruling will allow us the flexibility to evaluate problematic mortgages in the state for possible eligibility for the (Obama) Administration's modification program and reduce the overall borrower and company costs associated with the foreclosure process," Fannie Mae said in a statement.
The Obama administration announced a plan in March to provide $75 billion in incentives for the mortgage industry to modify loans to help borrowers avoid foreclosure. Freddie and Fannie also rolled out a refinancing program for homeowners who owe up to 5 percent more than current total value of their home with an application deadline of June 2010.
To read the rest of this article, http://www.cnbc.com/id/30582053/for/cnbc/
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