Foreclosed Home Activity in South Carolina Inch Up
The number of loans and potential foreclosed home in a South Carolina county rose in the second quarter of this year. The increase happened as South Carolina is reeling from the effects of rising unemployment.
The number of foreclosed home activity in Beaufort County, South Carolina rose in the second quarter of 2009. During the period, the number of homeowners in South Carolina who missed at least one month of their mortgage payments rose to a new height, but still below the national delinquency rate.
According to market data, about 12 percent of all mortgage loans in the state were delinquent for at least a month or in some stage of foreclosure process. The figures represented a slight rise compared with the previous year.
In Beaufort County, about 594 houses were facing foreclosures, compared with 533 bank foreclosure in the first three months of this year. Additionally, foreclosures were up to 70 in the first quarter and 99 in the second quarter, all of last year.
The total figures in the second quarter of 2009 showed that one in every 137 properties was in some kind of foreclosure proceedings, the second highest ratio in South Carolina.
Industry analysts said that foreclosures in South Carolina are expected to continue to increase or will remain higher compared with typical rates in other states because of the rising unemployment rate and the number of people who worked at reduced wages.
In terms of the number of mortgage loans in default, South Carolina still ranked somewhere in the middle of the mortgage delinquency rate ranking nationwide. But the state’s ranking increased slightly the second quarter.
South Carolina ranked 16th in mortgage delinquency rate and 19th in foreclosure starts.
Analysts said that what is happening in South Carolina is mirrored in other areas in the country. They blamed the unabated unemployment problem as the major factor driving foreclosures to the ceiling. They believed that the recovery of the housing market lies on the drop in unemployment numbers.
According to industry analysts, some areas in the country that were hardest hit by the foreclosure crisis are already seeing some improvements in their housing market and local economies. But they pointed out that in the case of South Carolina, it would take longer for the state to see a drop on its foreclosure rates and improvement on its economy. This is because the state has the fourth highest unemployment numbers in the country and recession came in late on the area.
By Cassiano Travareli