Charleston affordable housingSales of foreclosed homes across the U.S. fell from 30% of all residential sales in the third quarter of 2010 to 20% of all sales in the same period for 2011, according to RealtyTrac, a national foreclosure tracking firm.

In South Carolina, sales of foreclosed homes accounted for 10.25% of all residential sales for the third quarter of 2011. That’s way down from 29.8% for the same period in 2010.

This rate is pretty low, when you consider Nevada, California and Arizona had the highest percentage of foreclosure sales for the third quarter at 57%, 44% and 43% respectively, RealtyTrac said.

So what are people paying for a foreclosed home? The U.S. average price for a foreclosed home is $165,322. In South Carolina, it’s $136,021.

In data recently posted by the Charleston Regional Business Journal, foreclosed homes in the Lowcountry (within Berkeley, Charleston and Dorchester counties) could be purchased at a discounted rate of 27.95-29% of homes not in foreclosure. Foreclosed homes with the steepest discounted rates – up to 37.2% — could be found in the Midlands.

Would you ever consider purchasing a foreclosed home for the savings? Why or why not?
Neighborhoods across the region negatively impacted by foreclosed properties have begun to see stabilization of home values through a $7.4 million dollar infusion from the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP).

The SC Community Loan Fund has been acting as a lead entity with the U.S. Housing and Urban Development’s Neighborhood Stabilization Program (NSP) for the tri-county. We have helped administer funds for this program in partnership with the S.C. State Housing Finance and Development Authority.  NSP funding is provided through HUD’s Community Development Block Grant Program under President George Bush’s Housing and Economic Recovery Act of 2008. A total of $3.92 billion was distributed to state and local governments across the country.

The tri-county’s NSP award was the result of a regional collaboration. To date, CLF and its 10 partners have purchased and rehabilitated or redeveloped 62 properties since implementation of the program began in September 2009. Fifty of the units have been rented, four have been sold and eight are currently available for sale.

For more information about SC Community Loan Fund, please visit www.sccommunityloanfund.org.