A new report from foreclosure tracking website RealtyTrac shows that the proportion of South Carolina home sales related to foreclosure is on the decline. According to the recently released data, sales of homes undergoing foreclosure accounted for 10.25 percent of all sales in the state in the third quarter of 2011. Compared to the same period in 2010, this represents a drop of approximately 20.8 percent.

An executive with RealtyTrac said the drop in sales could be a result of confusion about the process of selling and buying foreclosed properties, adding that an impending settlement between major banks and attorneys general from a host of states could cause such properties to begin selling at a faster rate.

Within South Carolina, the Upstate area saw the most change, with Spartanburg leading the region with a 40.5 percent decline in foreclosure-related sales since the third quarter of 2010. The state's Lowcountry area saw slightly lower drops, with sales in Berkley falling by 27.6 percent and sales in Charleston dropping by 20.8 percent. The Midlands saw the slightest decline with the exception of Calhoun, which saw no foreclosure sales.

Nationally, foreclosed properties accounted for around 20.4 percent of all home sales in the third quarter of 2011. This is a decrease of about 4.7 percent from the third quarter of 2010. The average sales price for such homes has also decreased in that time, falling by about 3 percent to $165,322, which is 34 percent less than homes not in foreclosure.

These numbers are most likely cold comfort to underwater homeowners, but there are options to fight foreclosure and keep a home. Filing for bankruptcy allows a stay to be issued on collection, or a borrower could negotiate a modification of payments with a lender.

Source: Charleston Business Journal, "Foreclosure closings account for fewer home sales in South Carolina," Lauren Ratcliffe, Jan. 26, 2012