(Wall Street Journal/May 6, 2009) South Carolina’s highest court issued an order Tuesday temporarily barring foreclosures on thousands of homeowners who may qualify for loan modifications under the Obama administration’s foreclosure-prevention program.
The Supreme Court of South Carolina halted foreclosures involving loans owned or guaranteed by Freddie Mac, Fannie Mae or other lenders intending to participate in the federal loan-modification program.
Roughly 6,300 properties in the state are in foreclosure proceedings, said Rick Sharga, senior vice president of RealtyTrac Inc., which tracks foreclosure data. The court’s order will likely halt at least half of these, he said.
In March, the White House announced a $75 billion plan that offered incentives for lenders to modify some mortgages.
Fannie Mae, which requested the temporary restraining order, said the ruling gives it “additional time to identify borrowers who may benefit from the administration’s modification plan and keep more struggling South Carolina homeowners in their homes with a sustainable mortgage.”
Roughly 1,100 South Carolinians with Fannie-backed loans face foreclosure sales this week, the company said. A Freddie Macspokesman declined to comment.
Chief Justice Jean H. Toal set a May 15 deadline for lenders in foreclosure actions to determine if loans are eligible for modification.
SOURCE: The Washington Journal
