South Carolina State foreclosure procedures are done through court proceedings. The time taken for foreclosure is approximately six months.
On default of payments by the borrower, the lender may choose to foreclose the loan and offer the property in foreclosure sale to recover the debts. The foreclosing lender shall file lis pendens, or pending lawsuit, on the borrower in announcing their intention to foreclose.
From the date of filing of the lawsuit, the lender shall file and personally deliver to the borrower the foreclosure notice within 20 days. In the event of the lender not being able to locate the borrower personally, the notice may be published in the local county newspaper at least once a week for three consecutive weeks. The borrower shall be given 30 days time to submit his response to the notice of foreclosure by the lender.
If the borrower fails to resolve the default, within the specified period, the lawsuit is referred to a hearing officer and the relevant notice is sent to all the concerned parties. The property may then be ordered for sale by the hearing officer. Before the decree of sale against the borrower, the lender has to obtain a signed declaration from the borrower relinquishing the right of an appraisal. If the borrower signs this declaration the property may be offered on sale without any appraisal and the highest bid shall be awarded irrespective of whether the bid is higher or lower to any perceived market value.
Once the sale is ordered, the notice of sale containing the following details must be posted at the courthouse;
The notice should also be published in a local newspaper within a period not less than three weeks before the date of sale. The sale will be conducted by a Court officer or a special referee at the designated time and location. Generally the foreclosure sale in the state of South Carolina takes place on a Monday at 11:00 a.m.
The sale will be awarded to the highest bidder, and the prized bidder shall remit a sum equal to 5 percent of the bid at the auction sale. The prized bidder shall be give about 20-30 days time to remit the balance money.
After the completion of the post-sale period, if any, and the prized bidder remits the balance money, the ownership of the property is transferred in favor of the prized bidder by the Sale Official.
The lender can file for a deficiency judgment and ask for action on the mortgager for such dues that may be left unsatisfied even after the foreclosure sale, if he has not waived any rights to file for a deficiency judgment. In the event of such a right being exercised, the borrower shall have the rights to redeem the property.
Providing that the deficiency judgment shall be sought by the lender, the sale continues for 30 days after the bidding ends and either the borrower or the lender may place and upset bid and make a refundable deposit.
Unless under circumstances of the deficiency judgment not waived, the borrowers have no right of redemption under the South Carolina foreclosure laws.
If you need more information about South Carolina foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.
