Top SC court halts thousands of foreclosure sales to give homeowners chance to modify loans

SC court halts thousands of home foreclosure sales

COLUMBIA, S.C. — South Carolina’s highest court has temporarily stopped thousands of pending foreclosure sales so homeowners can take advantage of a new federal program to refinance mortgages.

The state Supreme Court on Tuesday issued a restraining order preventing South Carolina judges from finalizing foreclosure sales on properties with mortgages backed by Fannie Mae or Freddie Mac.

The order also applies to any mortgage lender who has signed on to a federal assistance program. RealtyTrac Inc. says the ruling could affect 5,000 South Carolina homes.

The Obama administration in March launched a plan to provide $75 billion in incentives for lenders to modify loans to avoid foreclosure.

Officials for Freddie Mac and Fannie Mae did not immediately comment on the ruling.