Number of foreclosures inches up in Beaufort County and statewide

The number of people behind on their mortgages in South Carolina was up slightly in the second quarter as the state struggles with job losses, but it was still below the national rate.

Nearly 12 percent of S.C. mortgage loans were at least 30 days behind or in foreclosure in the second quarter, according to the Mortgage Bankers Association. That's less than a percentage point increase from the first quarter. The national rate was about 13 percent, also up a percentage point from the first quarter.

Though data from the association were not available for Beaufort County, foreclosure activity continued to increase in Beaufort County, according to RealtyTrac of Irvine, Calif.

In the second quarter of 2009, 594 properties in the county were in some stage of foreclosure, compared to 533 such properties in the first quarter, the company's data showed.

In 2008, figures for the first and second quarters were 70 and 99 homes, respectively.

The second-quarter total means one out of every 137 housing units in the county was in some stage of foreclosure, the second-highest rate in the state, according to the data.

With unemployment rates at record levels and even more people working reduced hours and for less pay, South Carolina's foreclosure rates likely will continue to climb or remain elevated compared with typical state rates, said Don Schunk, a research economist at Coastal Carolina University.

"It comes down to jobs and income," Schunk said.

South Carolina, for the most part, has stayed in the middle of the pack nationally for people falling behind on their mortgages, but rankings rose slightly this quarter. The state ranked 16th in delinquencies and 19th in foreclosures started.

Some parts of the country that were hit hard and early by an eroding housing market and falling economy already are starting to see improvement.

But it could take longer for S.C., which has the fourth-largest unemployment rate in the nation and didn't join the recession until late, to see improvement in foreclosure rates and its economy, economists said.

Nick Kremydas, chief executive of the S.C. Realtors, said he wouldn't be surprised to see another wave of foreclosures if the unemployment rate continues to rise.

"We're keeping an eye on those foreclosure numbers and unemployment numbers," Kremydas said. "Those are going to be the biggest indicators."