ROCK HILL, S.C. - York County's foreclosure rate increased at nearly twice the national average in the first half of the year and is expected to continue to rise, area bankers and real estate agents say.

The number of homes in foreclosure in the county for the first six months of 2010 was 15 percent higher than the same period in 2009. The national average was 8 percent higher, according to RealtyTrac, a firm that computes housing statistics.

Two factors could make the rate worse - the area's double-digit unemployment rate and the possibility that unemployment benefits for many could expire. Congress is considering extending those benefits.

"The kingpin for many is employment benefits," said Ronald T. Miller, senior vice president for loan administration at Family Trust Federal Credit Union in Rock Hill. "It's the only lifeline these people have."

Many facing foreclosure have spent whatever savings they had and have maxed out credit cards, leaving unemployment benefits as their sole source of income.

"The second quarter was a tale of two trends," said James J. Saccacio, chief executive officer of RealtyTrac. "The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sales and loan modification incentives.

"Meanwhile, the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009."

The numbers put the U.S. on pace to exceed 3 million foreclosure filings by the end of the year and 1 million bank repossessions, Saccacio said.

South Carolina's rate of foreclosures jumped 34 percent in the first half of the year - 20th-highest in the nation, according to RealtyTrac. One out of every five home sales in South Carolina involved some form of foreclosure, according to RealtyTrac.

In York County, 815 homes were in foreclosure in the first six months of 2009. For the first half of this year, that number jumped to 936. In Rock Hill, 481 homes were in foreclosure during the first six months of this year compared to 392 for the same period last year - an 18.5 percent increase.

Lancaster County's rate was up by 50 percent - from 69 homes in foreclosure in the first six months of 2009 to 104 in 2010.

Chester County's rate, meanwhile, was down by 27 percent - from 11 homes in foreclosure in the first six months of 2009 to eight in 2010.

The York and Lancaster numbers do not surprise Butch Brindel, director of the Piedmont Regional Association of Realtors, which covers York, Lancaster and Chester counties.

"It is a function of the economy, jobs," he said. York County's unemployment rate was 14 percent in May, the last month statistics are available. In Lancaster County, 15 percent are unemployed.

Nonetheless, Brindel said real estate agents are experiencing their best year since 2007, with sales up 15 percent over last year.

It might take more time to turn around the foreclosure numbers, Family Trust's Miller said, because the three-county region was one of the last to be hit hard by the recession.

The best thing people who are struggling to pay their mortgages can do is to talk with their lenders, he said. The worst thing is becoming three or more months delinquent, he said. At that point lenders typically begin foreclosure proceedings.

That doesn't mean people will become immediately homeless, however. In South Carolina, the foreclosure process usually takes six to eight months.

Miller's advice to those facing financial problems is to contact their lenders for help immediately.

"Don't wait for someone to call you," he said.

Credit counselors can help prioritize debt, developing a plan that emphasizes necessities such as food, health care, shelter and transportation.

Avoiding foreclosure

Tips to help you keep your home, from the U.S. Department of Housing and Urban Development:

Don't ignore the problem. The further behind you are the harder it will be to reinstate your loan.

Contact your lender and other creditors as soon as you realize you have a problem.

Open and respond to all mail from your lender and creditors.

Know your mortgage rights.

Understand foreclosure prevention options such as modifying your loan, asking for a temporary halt to mortgage payments and refinancing.

Contact a counselor. To find a HUD-approved counselor, call 800-569-4287.

Prioritize your spending.

Avoid foreclosure prevention companies that offer to help you; use that money to pay your mortgage.

Read more: http://www.heraldonline.com/2010/07/18/2317658/local-foreclosures-are-twice-national.html#ixzz0u26CtR00

Disclaimer