7/31/2007 8:50:09 AM
The number of those who lose their homes to foreclosure is on the rise in South Carolina, up more than 50% since last year.

According to the Homeownership Resource Center in Conway, it comes down to planning and paperwork, and it affects a lot of people.

Theresa Ross told NewsChannel 15 she typically counsels people about debt management, but lately she's counseled numerous clients on what they can do to keep their homes.

"It's the American dream. Everybody that wants a home, should be able to have one. But they should understand all the responsibility that goes along with that," Ross said.

Ross said in May, foreclosure rates in South Carolina went up 13%. The Homeownership Resource Center also reports that there have been 224 active foreclosures in Horry County this year alone.

Ross said with high home prices, one reason families lose their homes is adjustable interest rates, which means your interest rate can change and go up on your loan.

Another reason is creative financing, which means borrowing more than what a home is worth. "A lot of people haven't budgeted for that money, because when you consider going from renting to a new home, all of a sudden you're buying new things to go in a home, you're not fully prepared your budget."

Realtors said the housing market went up in 2005 and has since adjusted, but not all investors are adjusting well.

Joni Burleson with Century 21 said, "A lot of investors come in buying at high peak, and now they're selling for 10's of thousands of dollars less, and they're having a hard time making payments."

When it comes to foreclosures, Ross advises get help early on.

"The sooner they come in and talk with someone, the more options they have available to them," she stressed, "The easier it is to work out plans with mortgage companies rather than wait until it goes to an active foreclosure."

Ross said some agencies will charge thousands of dollars to save your home, so people may consider counseling from a non-profit agency.

Nationally, the foreclosure rate has soared as well, with an average of one foreclosure for every 134 households, an increase of 55% from the same time last year.

For more information on counseling, you can reach the Homeownership Resource Center at 1-800-234-3801 or clicking on the link below.