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Rate of Foreclosures and VA Home Listings Grew Rapidly in SC Last Year

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By : John Cutts    99 or more times read
The number of foreclosures, including properties under VA home listings, rose rapidly in several local markets of South Carolina last year. Some areas of the state recorded the fastest growth in foreclosure rate in the whole U.S. in 2010, with unemployment and bad loans largely blamed for the trend.

Foreclosure listings in Columbia and in other areas of the state recorded some increases in 2010, but the area that posted the biggest jump in foreclosure rate was Spartanburg. The city recorded the fastest growth in foreclosure rate in the whole U.S. last year, with foreclosures jumping a massive 228% in 2010 compared with the previous year. During 2010, the city had one household out of every 60 housing units under some stage of foreclosure.

This is considered huge, given that the population of the metro area is a little less than 300,000. Housing industry analysts stated that the major reasons behind the massive growth in the number of properties from the area that fell under South Carolina foreclosure lists were unemployment and bad loans, particularly those taken out to purchase investment residential properties.

Spartanburg's unemployment rate last year was at 10.9%. However, during 2009, it jumped to an all-time high of 12.7%, way higher than the national unemployment level. Majority of those who lost their jobs in the past two years reportedly had mortgages. Upon losing their jobs, more than half of them lost their properties to foreclosure, adding further to the number of properties falling under foreclosed bank and VA home listings.

Despite the huge number of properties under listings of foreclosure houses, the city has shown some signs of economic improvement during the last few months of 2010, buoyed mainly by additional hiring at the BMW factory situated in the area. In addition, retail sales seemed to be picking up at Spartanburg as consumers have started spending again and seemed to be gaining some much needed confidence.

Market analysts, however, expected properties under bank foreclosures and VA home listings to increase again this year as the foreclosure crisis hits its peak and lenders try to unload as much foreclosed properties as they can to lower the inventory of unsold properties.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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