South Carolina Halts Foreclosures

Posted on May 4, 2011


Citing failed loan modification and mitigation efforts, the Chief Justice of the South Carolina Supreme Court issued an order halting all foreclosures in the state.

Supreme Court Chief Justice Jean Toal cited the overload of foreclosure cases in the South Carolina court system. She ordered a halt until mitigation procedures can be completed.

Justice Toal’s decision shows that states do not have to tolerate sloppy, and quite frankly, dishonest bank procedures. The bank strategy is short-sighted. Banks believe that by clearing up the market by getting rid of problem mortgaged homes, they will reach the bottom of the housing market sooner. What they are building instead is a large segment of the population who no longer trusts that buying a home is a good idea. These same people also no longer trust their banks.

Who is willing to put most of their life earnings, and savings, into the purchase of a home if they think it could just be taken away from them? Not anyone who has had that happen to them already.

Once again, the banks are thinking of short-term gain and not long-term profit.