South Carolina Foreclosure Laws

South Carolina foreclosures are always judicial and administered through the court system. Most take about six months to complete.

Pre-Foreclosure

To start the foreclosure process, the lender must file a lis pendens. This is a notice of a pending lawsuit and declares the lender's objective to foreclose. No later than twenty days after filing the lis pendens, the lender must file a foreclosure notice and have it served via a process server to the debtor. If the debtor cannot be found, service through publication is possible. The debtor must file a reply to the notice within a month. If the default amount is not paid, a hearing officer is assigned to the case. At this stage, all parties that are involved are sent a notice. Usually, the hearing officer will decide that the property is to be sold to repay the default amount.

The Foreclosure Auction in South Carolina

Before the foreclosure auction can take place, the notice of sale must be published and posted. This notice includes the time and location of the auction, a description of the property, and the names of the lender and debtor associated with the property. The notice must be published in a local newspaper for three weeks and must be posted at the local courthouse as well before the auction.

The foreclosure auction is overseen by a referee or a court officer. The foreclosure sales in South Carolina generally take place on Mondays around eleven in the morning. However, this time can change. The person who makes the highest bid must pay 5% of the bid amount at the auction. The winning bidder must provide the balance of the amount within twenty or thirty days.

The redemption period depends on whether the lender has retained the right to file a deficiency judgment. This right permits the lender to seek out the debt amounts that have not been covered by the sale of the property at the auction. If the lender has given up this right, the debtor has no redemption rights after the foreclosure sale. If the lender has retained the right to seek a deficiency judgment, there is a thirty day redemption period after the auction. During the redemption period, anyone can place an upset bid, effectively creating a new bidding process. Once the winning bidder has been declared after the redemption period, the court confirms the sale and the ownership is transferred to the winning bidder.