The state’s governor, Henry McMaster, signed off on the legislation in an effort to help those affected by the economic fallout of the COVID-19 pandemic. This action by South Carolina is part of an ongoing trend among states and cities across the US to protect citizens from uncompromising financial hardship.
At the onset of the coronavirus crisis, South Carolina was one of the first states to suspend foreclosure proceedings through the end of April. However, the economic impact of the pandemic continued to be felt throughout the summer months and into the fall. With job losses and business closures drastically increasing, the number of households facing foreclosure only continued to rise. In response, the state legislature activated an emergency provision that extends the protections until December 31st of this year.
The act makes it illegal for lenders or creditors to proceed with any foreclosure action on properties that are the primary residence of a resident of South Carolina. This includes single-family, multi-family, and manufactured homes. The legislation also explicitly prohibits mortgage servicers from passing any fees, fines, or other costs onto consumers during this period, which will help to keep homeowners from facing further financial hardship while already struggling with the impact of the pandemic.
For tenants, the act also requires landlords of residential properties to provide at least 90 days’ notice before initiating eviction proceedings against a non-paying tenant. These two provisions of the act will help to ensure the security and stability of both renters and homeowners who may be feeling financial strain due to the pandemic.
This act is part of a broader trend of state governments throughout the country responding to the crisis by providing economic aid and protections to those most affected by it. A number of states have already put in place laws that suspend foreclosures and evictions on residential properties, and many more have allowed for lenient repayment plans on real estate loans. On the national level, the CARES act provides stimulus payments to individuals, and also suspends certain loan payments until the end of the year.
The state of South Carolina’s actions reflect a commitment to helping its citizens face the economic toll of the pandemic. By suspending foreclosures and providing other necessary protections, the state seeks to slow the rate of economic decline whilst allowing families and individuals to recover from the financial hardships they have experienced. As the pandemic continues to affect the US economy and puts increasing pressure on people’s finances, the measures taken by South Carolina serve as an example of how state governments can help protect citizens from financial ruin.
This article was contributed on Sep 22, 2023
