South Carolina foreclosures put on hold pending modification process
South Carolina Supreme Court Chief Justice Jean Toal entered an administrative order this week halting foreclosure proceedings in the state to allow for the opportunity for homeowners to apply for loan modifications. The order, issued May 2, 2011, requires that all foreclosure actions concerning owner-occupied residential dwellings pending on May 9, 2011 be stayed until the foreclosing attorney certifies that the borrower has been served with notice of his or her right to “foreclosure intervention” (a loan modification or other means of loss mitigation), the borrower has had a “full and fair opportunity” to submit information and apply for a modification or other loss mitigation, that the lender or servicer has reviewed the submitted information, and that it has properly notified the borrower and given them thirty days to respond.
For such actions filed after May 9, 2011, the notice to the borrower of the right to foreclosure intervention may be included in the foreclosure summons and complaint. The order also made it clear that the borrower has the right to communicate with the lender through its attorney once an action has been filed. Either party may be subject to sanctions including the assessment of attorney fees and costs for failure to comply with the order in good faith.
Click here to view the complete order.
