Jump to Navigation
We can handle your closing anywhere in the state.
Subscribe to This Blog's Feed

Role of foreclosure settlement cash raises fear in South Carolina

A couple of months ago, distressed homeowners welcomed the announcement of a settlement with major mortgage lenders for their deceptive foreclosure practices. Now, portions of the $25 billion settlement are being disbursed throughout the 50 states. South Carolina leaders are questioning how to best utilize the foreclosure settlement funds.

The state of South Carolina is receiving a total of $32 million in cash to help provide respite for foreclosure victims. However, the funds are being handed to each state's attorney general in order to be distributed as they see fit. In South Carolina, the attorney general has left it up to the legislature to decide how the funds should be used.

Some people believe the funds should not necessarily provide direct relief to homeowners, as they are intended. Rather, some lawmakers believe the funds should be used to attract more jobs to the state. They argue that jobs will be helpful in providing debt relief.

This potential move comes on the heels of news that the foreclosure crisis in South Carolina may not have reached its peak quite yet. According to a report from RealtyTrac, a national real estate organization, foreclosures will continue to increase in frequency throughout the state. In fact, another wave of foreclosures is just beginning.

News that the foreclosure settlement money may not be used to provide direct mortgage relief may be disconcerting to those homeowners on the verge of losing their homes. This only fuels earlier concerns that the settlement did not go far enough to protect financially-strapped homeowners.

Fortunately, there are alternatives to foreclosure that can provide the kind of reassurance South Carolina families on the verge of foreclosure deserve. Aside from direct relief payments from the settlement, bankruptcy, short sales or a deed in lieu of foreclosure may be viable options.

While bankruptcy and short sales are becoming increasingly popular options to avert foreclosure, a deed in lieu of foreclosure can be a viable way to speed up the process. Under this particular arrangement, borrowers give the house's deed to the lender in exchange for a cancelation of the mortgage, which will end foreclosure proceedings. Lenders must agree to this before the process moves forward. This is not necessarily a simple task, so getting the best arrangement from a lender may involve some complications. At the same time, there may be a better solution waiting for overwhelmed homeowners.

Source: WSPA-TV News, "Mortgage Settlement Money May Not Be Going To Help SC Homeowners," Diane Lee, May 8, 2012

No Comments

Leave a comment
Comment Information
Tell Us About Your Transaction

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Weeks & Irvine at One of Our Six Locations

North Charleston office 8086-B Rivers Avenue
North Charleston, SC 29406
Phone: 843-553-9800
Toll Free: 800-553-7449
Fax: 843-553-9804
Maps and Directions

Mt. Pleasant office
1100 Queensborough Blvd, Suite 102
Mt. Pleasant, SC 29464
Phone: 843-856-9800
Toll Free: 800-553-7449
Fax: 843-216-0930
Map and Directions

Mt. Pleasant North office
3040 Highway 17-A North, Suite B
Mt. Pleasant, SC 29466
Phone: 843-388-3250
Toll Free: 800-553-7449
Map and Directions

West Ashley office
873 Orleans Road, Suite 102 1/2
Charleston, SC 29407
Phone: 843-571-2996
Toll Free: 800-553-7449
Fax: 843-571-2998
Map and Directions

Summerville office
106 West 7th North St
Summerville, SC 29483
Phone: 843-875-7111
Toll Free: 800-553-7449
Fax: 843-875-7721
Map and Directions

Goose Creek office
567 Crowfield Blvd.
Goose Creek, SC 29445
Phone: 843-553-9100
Toll Free: 800-553-7449
Fax 843-553-9183
Map and Directions