For homeowners facing foreclosure in South Carolina, the following is a summary of the state’s foreclosure laws:
Foreclosures in South Carolina can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Nonjudicial foreclosures are not allowed in South Carolina.
South Carolina law requires one foreclosure notice:
- The bank will give the homeowner notice of the lawsuit by serving a summons and complaint. In South Carolina, the homeowner generally has 30 days to file an answer with the court. If the bank is awarded a judgment against the homeowner, the court will order a foreclosure sale. The bank will also publish a notice of the sale in a local newspaper and post it in several public places.
South Carolina Foreclosure Protections
South Carolina law provides protections in accordance with the federal Service Members Civil Relief Act.
Also, If the court finds a violation of the South Carolina high-cost home loans statute, it may:
- Refuse to enforce the agreement
- Refuse to enforce the term or part that was unlawful
- Rewrite the agreement to eliminate the unlawful part
During the foreclosure process, a homeowner can use a violation of the statute as a defense.
Reinstatement and Redemption
South Carolina law does not allow a homeowner to reinstate the mortgage before the foreclosure sale, but the mortgage contract itself may include a clause that allows this right.
While the homeowner cannot redeem the home after the sale, they may be able to get the house back after the foreclosure sale by placing an upset bid or a higher bid than the winning bidder after the foreclosure sale. Also, if the bank does not forego a deficiency judgment in the foreclosure action, the homeowner will get a 30-day upset bid period after the foreclosure sale.
South Carolina law allows the bank to request a deficiency judgment.
Homeowners can challenge the deficiency amount if they believe that the foreclosure sale price was less than the home’s market value. They will need to request an order of appraisal from the court within 30 days of the sale. The deficiency amount will then be limited to the total outstanding debt minus the home’s fair market value.
In South Carolina, the bank can include an eviction as part of the foreclosure action and get a writ of assistance from the court. For information regarding how to avoid foreclosure in South Carolina, visit HUD.gov.