Quick Facts
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: No
– Primary Security Instrument: Mortgage
– Timeline: Varies
– Right of Redemption: No
– Deficiency Judgments Allowed: Yes
In South Carolina, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
The judicial foreclosure process is when the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold.
Notice Requirements
A notice of sale, containing a description of the property, the time and place of sale, the borrower’s name, and the lender’s name must be published at the courthouse door and two other public places at least three weeks prior to the date of sale. The notice must also be published in a newspaper of general circulation within the county where the property resides for the same time period.
Where Auction Takes Place
Unless otherwise ordered by the court, the sale must be conducted at the courthouse where the sheriff of said county locates the property. The sale must be held on the first Monday of each month unless it is a holiday, and then the sale may take place on the following Tuesday. The sale may begin at 11:00 am and go until 5:00 pm, but the sheriff may close the bidding prior to that time.
Auction Stays Open For Specific Term
Despite the fact that the bidding at the public sale has ended, in South Carolina, the auction stays open for a full thirty days after the public sale date. During this thirty-day time period, anyone may place a bid higher than the last bid amount, and the successful purchaser will be the one with the highest bid at the end of the thirty days. This ongoing bid process is referred to as upset bidding. Anyone other than the successful purchaser, who has placed a bid during this time, will be entitled to a refund of any deposit made in good faith, and they will have no further interest in the property.
Where There Is No Objection
If no objection to the property’s sale price has been filed with the sheriff’s office within three months after the date of sale, the sale will be considered confirmed, and the sheriff will make any necessary deed endorsements.
Deficiency Judgments Allowed – No Redemption Rights Of Borrowers
Lenders in South Carolina may file for a deficiency judgment against the borrower, and borrowers have no redemption rights.
