South Carolina Freezes Foreclosures
The South Carolina Supreme Court placed a temporary moratorium on thousands of foreclosure sales on properties guaranteed by Freddie Mac (FRE), Fannie Mae (FNM) or any other company that has signed on for the Obama Administration's Making Home Affordable modification plan. The ruling marks the first statewide court-ordered foreclosure freeze and aims to allow servicers additional time to evaluate borrowers for eligibility in the program. Fannie Mae initially requested the injunction, but chief justice Jean Toal issued an order placing a moratorium on properties backed by loans owned or guaranteed by both agencies and a variety of other servicers participating in the Administration's program, according to the Associated Press. The moratorium is set to expire May 15. Write to Diana Golobay at firstname.lastname@example.org. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.