Habitat for Humanity forecloses on 2 Charleston homes

Local donors and volunteers from Charleston and elsewhere helped build new Habitat for Humanity homes in the city's North Central neighborhood eight years ago, but today, two of those homes are scheduled for foreclosure auction.

Charleston Habitat for Humanity said the foreclosure sales are unusual, but that in each case the families abandoned the houses after falling behind on payments. The families could not be reached for comment, and Browning said he has no idea what's become of them.

"They could turn up today and I would negotiate with them, but I doubt that will happen," he said.

Across the nation, a large spike in foreclosures has been blamed upon adjustable-rate mortgages, loose lending practices, and buyers who got in over their heads. But Habitat homes are charitable endeavors, where owners are given modest, no-interest loans.

Mortgage payments are typically between $350 and $450 a month, just enough to cover building materials and payments to subcontractors such as electricians. Homeowners must also pay property taxes, utilities, and insurance.

"It's a shame," said Larry Cohen, attorney for the non-profit group in the foreclosure cases. "They will go to the highest bidder."

Browning said that Habitat would only bid up to the amount owed, which is around $70,000 on each of the H Street houses, representing the first and second mortgages. He said he hopes someone bids more, because Habitat would rather have the money than the properties, which he expects would need to be rehabilitated.

Read more in Tuesday’s edition of The Post and Courier.