South Carolina Foreclosure Laws

A South Carolina foreclosure is administered through the judicial process. Unlike other states, a non-judicial foreclosure is not an alternative means to foreclose a real estate property. Borrowers whose property is subject to foreclosure can stop the sale by making a full payment of debt and any applicable costs. Typical foreclosure timeline is about 6 months. Delays in the foreclosure proceedings are expected especially when the borrower claims for bankruptcy.

Judicial Foreclosure Information

To satisfy a borrower’s debt, a lender can pursue a foreclosure on a distressed property. Under South Carolina foreclosure laws, the court has the final judgment on the foreclosure sale. To initiate a foreclosure, the lender needs to file a lawsuit also known as a lis pendens in the county court. A lis pendens, which is a recorded document, provides a public notice about an impending foreclosure on a distressed property. The defendant is the defaulted borrower whom given 30 days to respond to the complaint or make a full payment of the outstanding balance. A foreclosure sale will be scheduled if the borrower failed to cure debt or when the court finds sufficient evidence against the defaulted borrower.

Foreclosure laws in South Carolina do not allow statutory right of redemption. For other states that support after-sale redemption, the state permits a person whose property has been foreclosed to reclaim the said property by paying off the full amount of unpaid loan plus any additional costs.

When a property in foreclosure is sold for less than the amount of loan, a lender may claim for deficiency judgment. When deficiency action is granted to the lender, the borrower should make a payment for the difference between the amount of the property sold for at the sale and the amount of the original loan. However, a deficiency judgment is subject to appraisal rights.

A court officer presides over a foreclosure sale. A South Carolina foreclosure sale is conducted similar to that a public auction where the property is auctioned off to the highest bidder. The winning bidder must provide a deposit of 10% and given 30 days to pay off the remaining balance. If there are no recorded objections within 3 moths after the auction, the court authenticates the sale and transfers property ownership to the winning bidder.

Notice Of Sale South Carolina

A South Carolina foreclosure is legitimate if the Notice of Sale is published weekly in a local newspaper for 3 weeks prior to the date of the public auction. Also, copies of the Notice should be posted on 3 public places and one at the courthouse door.