South Carolina Foreclosure Laws

Foreclosure Laws in South Carolina

Foreclosure law in South Carolina requires that lenders pursue judicial foreclosures only. Generally, a foreclosure in this scenario takes about 6 months to complete.

Before the foreclosure process can begin in South Carolina, a lender must file a suit against the homeowner, known as a Lis Pendens, in court for the default debt owed. If the matter is not settled in 20 days, the lender may issue a Notice of Foreclosure, and must deliver it to the homeowner. The homeowner than has 30 days in which to pay off the debt owed to the lender. If this still does not occur, the court will hold a hearing and move to have the homeowner's property sold through foreclosure auction.

Once a sale is scheduled, A Notice of Sale must then be sent to the homeowner and any other junior lien holders outlining the time, date, location and details of the sale. The Notice must be posted at the county courthouse, and published once weekly in a local newspaper for 3 weeks leading up to the sale. The foreclosure sale is held in the style of an auction presided over by an officer of the court, and typically occurs at 11 am on a Monday. Once a winning bidder is determined, that person must provide 5% of their bid to the officer to validate the sale, and pay the rest of the winning bid within 2 to 30 days.

If the lender agrees to waive the right to seek a deficiency judgment from the homeowner to collect any debt unsatisfied by the sale of the home, then the homeowner receives no right to redemption once a sale is complete. However, if the lender does choose to keep the right to a deficiency judgment, the sale will continue in an open setting for 30 days following the auction. During this time, anyone may attempt to enter an upset bid and win the property. This amount must be higher than the winning bid at the sale. Whether or not there is an upset bid, once this period expires, the lender transfers ownership of the property to the winning bidder. The homeowner has no right to redemption once the upset bidding portion of the sale is complete.