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: It's (Barely) Legal

SC court halts thousands of foreclosures

By Glen Ashman

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SC court halts thousands of foreclosures Tue May 5, 4:19 PM ET AP

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.

Full post as published by It's (Barely) Legal on May 05, 2009 (boomark / email).

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