Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
South Carolina Foreclosure Laws
South Carolina
Foreclosure Laws
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Varies
- Right of Redemption: No
- Deficiency Judgments Allowed: Yes
In South Carolina,
lenders may foreclose on a mortgage in default by
using the judicial foreclosure process.
South Carolina
Foreclosure Laws:
Judicial Foreclosure
The judicial foreclosure process is one in which the
lender must file a complaint against the borrower
and obtain a decree of sale from a court having
jurisdiction in the county where the property is
located before foreclosure proceedings can begin.
Generally, if the court finds the borrower in
default, they will give them a set period of time to
pay the delinquent amount, plus costs. If the
borrower does not pay within the set period of time,
the court will then order the property to be sold.
In South Carolina, the property is generally sold in
the following manner:
A notice of sale, containing a description
of the property, the time and place of sale, the
borrowers name and the lenders name, must be
published at the courthouse door and two other
public places at least three weeks prior to the
date of sale. The notice must also be published
in a newspaper of general circulation within the
county where the property resides for the same
time period.
Unless otherwise ordered by the court, the
sale must be conducted at the courthouse where
the property is located by the sheriff of said
county. The sale must be held on the first
Monday in each month, unless it is a holiday and
then the sale may take place on the following
Tuesday. The sale may begin at 11:00 am and go
until 5:00 pm, but the sheriff may close the
bidding prior to that time.
Despite the fact that the bidding at the
public sale has ended, in South Carolina, the
auction actually stays open for a full thirty
days after the date of the public sale. During
this thirty day time period, anyone may place a
bid higher than the last bid amount and the
successful purchaser will be the one with the
highest bid at the end of the thirty days. This
ongoing bid process is referred to as upset
bidding. Anyone, other than the successful
purchaser, who has placed a bid during this
time, will be entitled to a refund of any
deposit made in good faith and he or she will
have no further interest in the property.
If no objection to the sale price of the
property has been filed with the sheriff's
office within three months after the date of
sale, the sale will be considered confirmed and
the sheriff will make any necessary deed
endorsements.
Lenders in South Carolina may file for a
deficiency judgment against the borrower and
borrowers have no rights of redemption.
