The nationwide housing market continues to ride out the storm, the federal government reported today new home sales dropped 26 percent in 2007. Housing prices also took a hit, the worst showing in 16 years. The good news for South Carolina, the number of foreclosures dropped only six percent in November. Five years ago, living in an apartment with his wife and three kids, Jeff Waddell decided it was time to find a house. His wife headed to a mortgage broker, “we were told through the broker, we could afford a home three times what we were budgeting.”

The deal turned out to be an adjustable rate mortgage. The same type of loan causing many of the current mortgage problems. Waddle passed, settling on a safer loan.

“By now we would be through several adjustments and would be looking at a mortgage rate that had doubled, maybe even tripled,” said Waddell.

Thousands of people aren't so lucky and foreclosures skyrocketed in 2007. Recent statistics show South Carolina is improving. In November, the states foreclosure rate ranked 42nd in the country. Many local realtors point to stabilizing housing prices.

“We have been able to maintain, but there are some adjustable rate mortgagees that will probably add to the numbers,” said Bobby Wallace with Reiland Lake Realty.

Facing foreclosure, Wallace says the time to act is now, either try and refinance with the lending company or the last resort, sell.

“They can't stick their head in the sand and hope it  gets better and they need to take action,” said Wallace.

Reiland Lake also can help people get back on their feet. It's a lease to own option. Based on your situation, credit, and income, the company will put you in a home, you make payments until you're ready to take over the mortgage.

Wallace says unlike many other “lease to own” programs, his company only locates homes people will be able to budget years from now.