BiggerPockets

Methinks this could only occur in a Lien Theory (Mortgage) state, which requires a judicial foreclosure, as opposed to a Title Theory state (Trust Deed). Most states are Title Theory.

Don't forget James Clyburn is from South Carolina. Believe Justice Toal needs review herself.

The injunction - which mortgage experts said appeared to be the nation's first court-ordered stop for an entire state - prevents judges in South Carolina from finalizing foreclosure sales on properties guaranteed by Freddie Mac, Fannie Mae or any other mortgage company that has signed on to a federal assistance program.

It's an attempt, originated by Fannie Mae, to slow or forestall their bleeding and consuming even more taxpayer money. The Judge expanded the request to include all lenders who have received a taxpayer bailout. It is not at all encompassing all foreclosures in the state, but designed to slow the pace of spending on the bailout. Anyone can claim consideration or compassion, but it's about the SC law allowing such an action and the need of Fannie to slow things down.

Toal also set a May 15 deadline for plaintiffs in foreclosure actions to notify other parties if the loan is subject to modification under the federal program. If it is, those foreclosure proceedings will remain on hold. But if not, the sale can go forward.

Fannie Mae and Freddie Mac had suspended foreclosure sales through the end of March to evaluate whether borrowers could qualify for the Obama program.

It does not stop even all Freddie and Fannie foreclosures only those who qualify under the Obama plan. There is no mention of how many that could be or is thought to be.

It is important to notice that

But if not, the sale can go forward.

This by no means stops the ENTIRE STATE or even all fannie and freddy in the entire state. Its is just media hype to say all and entire. Will it have an affect, YES. There can be no doubt about that.

But I find it interesting that if all they wanted was a delay to allow for time to see what rules will be put into place for the new program as the article suggests that they did not ask the judge to "restart all foreclosures" as is possible according to this part of the article.

Fannie Mae said the ruling was necessary because of a South Carolina law meant to ensure that foreclosures sales are conducted in a timely fashion. Under the law, judges can cancel a foreclosure case and start over if the sale is delayed for too long.