South Carolina Foreclosure Law
South Carolina State Foreclosure Law dictates that lenders may only avail of the Judicial Foreclosure process to foreclose mortgages in default, unlike in other states where Non-Judicial or “Power of Sale” Foreclosure process is also available. All disputes regarding foreclosure must be done through the courts. The typical time of process varies, depending on the court’s ruling and the mortgage is the only security instrument recognized. Filing lawsuits for Deficiency Judgments are allowed, but the Right of Redemption is not recognized in the State of South Carolina.
Judicial Foreclosure is used when no power of sale exists in the security instruments. Petitioners must file a lawsuit in order to obtain a court order to foreclose before any other proceedings regarding the sale of the property could get underway. Normally, the borrower is given a certain amount of time to pay the delinquent amount, plus interests and other expenses if the court proves that the borrower is indeed in default. The period of time is set by the courts. However, should the borrower fail to cure the default within the time given, the court will then issue an order for the property to be sold.
The foreclosure sale process in South Carolina is conducted in the following manner:
- A Notice of Sale must be posted at the courthouse entrance and 2 other public places at least 3 weeks before the date of sale. The notice should contain the names of the borrower and the lender, a legal description of the property, and the time and place of the sale. The notice must also be published in a county newspaper of the property’s locale for the same time period.
- Unless otherwise ordered by the court, the foreclosure sale must be conducted at the courthouse exercising jurisdiction over the property and to be presided upon by the county sheriff. The sale must be held on the first Monday of each month, unless it is a holiday, in which case, the sale will be set the following day. The sale may take place between 11:00 a.m. to 5:00 p.m., unless the sheriff decides to close the bidding earlier.
- Despite the closing of the foreclosure sale at the specified date and time, the auction may still proceed for a full 30 days after the concluded public sale. Within this 30 day period, anyone may place a bid higher than the last bid amount and the property will be awarded to whoever posts the highest bid at the end of the 30 days given. This on-going bidding process is referred to as upset bidding. Anyone, other than the successful purchaser, will be entitled to a refund of any deposits they have made in good faith. The refund also serves as a forfeiture of any further interests in the property.
Should there be no objection to the selling price of the property filed with the sheriff’s office within 3 months after the date of sale, the sale will be confirmed and finalized. The sheriff will then make all necessary deed endorsements.
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