Foreclosures in the State of South Dakota are mostly handled by the court and are judicial in nature. Some of the mortgages are either handled judicially or through an advertisement, though the latter foreclosure method is not too common.

The lender is not required to necessarily issue notice of default of payment to the borrower before initiating the foreclosure process. But, in most cases of mortgage, it is stipulated that the lender issue a notice of default before proceeding with any foreclosure process.

It is the lender who normally initiates the foreclosure process in South Dakota by filing a complaint for Civil Action in the court against the borrower for default of payment. The borrower is given a period of about 30 days for filing response and such responses, if any, shall be heard by the court.

Once the foreclosure is heard by the court and a judgment is entered, a stay of 30 days comes into force which can be waived by the court.

Following the judgment permitting the foreclosure, a notice for sale shall be published by the lender in any of the local newspapers. This publication shall be made once a week for four consecutive weeks. In addition to the publication the lender has to arrange for the notice of sale to be served to the borrower, as well as any stake holders, at least 21 days before the date of the intended sale.

After the serving of the notices and the publication of the sale notice are completed, the foreclosure sale can be conducted as scheduled. The sale shall be conducted by the County Sheriff and it starts at 9:00 a.m. and can stretch to 5:00 p.m. Any member of the public can offer to bid for the property and this includes the lender too.

The bidder, who bids the highest in the auction sale, is given a certificate of sale upon completion of the sale. The complete rights of the property are transferred to the prized bidder and the ownership is transferred after the end of the redemption period.

The borrower or any of the stake holders of the property can apply for redeeming the property by repaying the complete debt amount to the lender, along with costs and interest. The process of redemption has to be initiated by giving notices to the person who wants to purchase as well as the lender. South Dakota foreclosures have a time of up to one year for redemption.

A longer period of redemption is permissible only in occupied premises. For a vacant property the period for redeeming the property is generally two months. In case the premise is not vacant, the redemption period can be stretched to six months.

If you need more information about South Dakota foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.