Struggling homeowners and those who lost homes through foreclosure are hoping to benefit from a $25 billion settlement between 49 states and the nation's biggest banks that resolves claims of foreclosure-related abuses. It remains unclear, however, who will benefit from the settlement. Government officials said the settlement provides long-overdue relief for victims of foreclosure abuse, while consumer advocates have argued that it benefits far too few people.

Initially, of the $25 billion from the nation's five biggest banks, South Carolina will get about $33.8 million, Attorney General Alan Wilson said. The deal will reduce loan obligations for some people who are underwater, or owe more on their mortgage than their home is worth; victims of improper foreclosures will receive checks.

Only some underwater homeowners will receive money, and it will take some time to dole it out to those who qualify. There are other options, however, to help ease these pressing financial burdens. For instance, some mortgage lenders hold outreach events where homeowners can meet with loan officers and specialists to discuss mortgage modification and other debt-relief strategies.

One option is the South Carolina Homeownership and Employment Lending Program, or HELP, which can help people facing possible foreclosure due to circumstances such as:

  • Unemployment
  • Death of a spouse
  • Divorce
  • Large medical bills

Homeowners might be able to get help with loan payments and even receive a one-time payment to get current on a loan. In some cases, the homeowner will not have to repay this state-run federal funding.

The Post and Courier, "Local homeowners seek foreclosure relief," David Slade, February 10, 2012.