South Dakota Foreclosure Laws

South Dakota foreclosure laws allow for both judicial and non-judicial foreclosures, but most foreclosures in the state tend to be administer through the courts. In South Dakota, some mortgages can even be foreclosed by advertisement, although this is not typical. The foreclosure process in South Dakota takes approximately 150 days.

Pre-Foreclosure

To start the foreclosure process, the lender must submit a complaint to the court about the default. The debtor generally is given thirty days to reply to the complaint. Many mortgages in the state require lenders to mail a notice of default to debtors before filing a complaint, but there is no state law that requires this notice. Once the thirty days have passed, whether or not the debtor has responded to the complaint, the court decides whether the foreclosure can proceed.

The Foreclosure Auction in South Dakota

If the default has not been resolved, the lender must post and publish the notice of sale. The notice must appear in a local newspaper. The notice must also be served to lien holders and to the debtor at least twenty one days before the auction is to take place.

The foreclosure auction usually takes place between 9:00am and 5:00pm and in most cases the sheriff is the person responsible for holding the auction and conducting it. The foreclosure auction is open to everyone, including the lender. After the foreclosure sale is concluded, the winning bidder is given a certificate of sale.

The redemption period in South Dakota is six months from the date of the auction. However, if a property is abandoned, the redemption period is only two months. During the redemption period, lien holders and the debtor can redeem the property by paying the amount owed to the lender.