South Carolina’s Pre-Foreclosure Crisis in 2024: Behind the Numbers, the Lives Upended

A Slow Recovery, but Families Are Still Hurting

In September 2024, pre-foreclosure notices were served to 616 households across South Carolina—a number that may seem modest at first glance, especially when compared to past years, but each of those figures represents a front door, a family, and a future that’s increasingly uncertain. While this month marked a 9.2% increase from August’s total of 564 pre-foreclosure filings, it also revealed a startling contrast from the previous year—a steep 36.8% decline from the 975 recorded in September 2023.

The data paints an image of a state slowly moving away from the brink of crisis. And yet, for many South Carolinians—particularly those working hourly jobs or living on fixed incomes—the danger of displacement still looms large. One missed paycheck or medical emergency can mean the difference between mortgage security and a notice nailed to the door.

The Peaks and Plateaus: A Two-Decade Trend in Foreclosure Activity

The pandemic-era federal moratoriums on foreclosures gave many American homeowners a temporary sense of relief. In states like South Carolina, where wages have historically lagged behind national averages and affordable housing is increasingly elusive, that reprieve has since ended—and with it, a resurgence of housing insecurity.

Looking back, South Carolina’s pre-foreclosure filings surged in the aftermath of the 2008 housing crash—more than quadrupling from just over 4,000 in 2008 to a staggering 38,500 by 2012. For context, that’s nearly 10,000 more than the population of North Myrtle Beach.

The years following 2013 saw a steady decline, bottoming out during the COVID-19 years when foreclosure freezes and stimulus programs helped families keep their homes. By 2021, the state saw only 2,935 pre-foreclosures—a record low. But the rebound came swiftly. In 2022, filings rose to 8,267. In 2023, they reached 11,480.

And now in 2024, with 5,019 pre-foreclosure filed from January through September, the state appears to be on pace for fewer filings than in 2023. But for the families still facing foreclosure, the drop in numbers offers little comfort.

When the Numbers Become Lives: Stories from the Pre-Foreclosure Crisis

In Orangeburg County, a retired school cafeteria worker named Martha Robinson faced pre-foreclosure earlier this year after a costly roof repair forced her to miss several mortgage payments. “I never thought I’d be in this position,” she said, sitting beside her 1970s ranch-style home. “After 30 years of working and paying my dues, I thought I’d be safe. But now, I’m one letter away from losing everything.”

Her story is not unique. Across South Carolina, from Florence to Spartanburg, homeowners are confronting the same economic forces: rising costs of living, stubborn inflation, and wages that haven’t kept pace with soaring housing prices. For African American and Latino homeowners, the risk is even more pronounced, with historic inequalities in lending and employment leaving them more exposed to economic shocks.

According to the South Carolina Housing Authority, the average mortgage payment in the state increased by nearly 30% since before the pandemic, driven in part by higher interest rates and rapidly appreciating home values. In Columbia, Charleston, and Greenville, some working-class neighborhoods are finding themselves surrounded by new luxury developments—while residents face eviction after one too many missed payments.

A Delicate Balance: Inflation, Interest Rates, and Housing Stability

At the heart of South Carolina’s pre-foreclosure trend is a broader economic puzzle. Inflation, though cooling slightly in recent months, has eaten into household budgets for nearly three years. Interest rate hikes by the Federal Reserve—meant to bring down consumer prices—have had the unintended consequence of making mortgages less affordable, especially for those trying to refinance in a higher-rate environment.

Rising property taxes and insurance premiums have further tightened household budgets. According to housing advocates, it’s often these secondary costs—rather than the mortgage principal—that prove too much for low-income families. Once a homeowner falls behind on escrow-related payments, many lenders trigger pre-foreclosure proceedings as a protective measure.

“This isn’t about reckless borrowing,” said Carlos Gutierrez, a housing counselor in Charleston. “It’s about survival. People are prioritizing food, power bills, and medications. Housing comes in fourth.”

Numbers Without Names: Missing County and City Data

Though we know the statewide tally—616 South Carolina households facing pre-foreclosure in September 2024—the story at the local level is harder to track. Without access to detailed county or city-level data, it’s impossible to determine precisely where the crisis is hitting hardest.

But if history is a guide, economically distressed areas such as the Pee Dee region, parts of the Upstate, and historically underserved communities in Richland and Horry counties likely account for an outsized share of the filings. These are places where employment lags, healthcare access is limited, and affordable housing is scarce.

In cities like Sumter and Florence, rising eviction rates often mirror spikes in pre-foreclosure activity—a sign that the housing market’s lower rungs are frayed, and pulling others down with them.