South Dakota Foreclosure Laws

Under South Dakota foreclosure laws, there are two foreclosure processes that can be administered to satisfy a borrower’s debt. These are judicial and non-judicial foreclosures. A typical timeline in a South Dakota foreclosure is about 90 to 150 days and depends on timing of the court schedules and notices. Sometimes, delays happen especially when the borrower files a bankruptcy.

Judicial And Non-Judicial Foreclosure Information

Since both judicial and non-judicial foreclosures exist, the presence or absence of the Power of Sale clause determines if the foreclosure will be carried out judicially or out-of-court. When this provision is initially signed by the borrower in the mortgage agreement, the lender is given an authority to foreclose the defaulted homeowner’s property without obtaining a court order. This foreclosure is known as non-judicial.

South Dakota foreclosure is processed in-court when a loan document lacks a Power of Sale clause or when a property title has a problem. This type of foreclosure requires the lender to file a suit against the defaulted homeowner. The court has the final judgment on this matter and can rule out against the borrower if the person did not respond to the suit or was not able to cure debt within a given period of time. When court finds sufficient evidence against the defendant, a foreclosure sale is scheduled.

For judicial foreclosures, the lender can initiate a foreclosure by filing a complaint against the defaulted borrower. This complaint is known as lis pendens that serves as a recorded document providing a public notice about a property in a process of foreclosure.

Foreclosure laws in South Dakota permits statutory right of redemption. This allows a person whose property has been foreclosed to redeem the said property by paying off the total unpaid loan plus any applicable costs. Typical redemption period is one year.

When the income of the foreclosure sale is less than the amount of loan, South Dakota foreclosure laws allows a lender can obtain a deficiency judgment. When deficiency is bestowed upon the lender, the borrower has to pay for the difference between the amount of the property sold at the auction and the amount of the original loan.

Notice Of Sale South Dakota

Foreclosure laws in South Dakota require for a Notice of Sale to be published weekly in a local newspaper. At least 21 days prior to the auction, the Notice should be mailed and received by the borrower. A foreclosure sale is conducted in a form of a public auction and supervised by the Sheriff. At the sale, the property is auctioned off to the highest bidder. A Certificate of Sale is given to the winning bidder.