For homeowners facing foreclosure in South Dakota, the following is a summary of the state’s foreclosure laws:
Foreclosures in South Dakota can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in South Dakota can also be nonjudicial but a court must confirm the sale.
South Dakota also allows voluntary foreclosures in which the bank and the homeowner agree that the bank will take immediate possession of the property. The homeowner agrees to forfeit the right to redeem the property and the bank agrees to forfeit the right to seek a deficiency judgment.
South Dakota law requires one foreclosure notice:
- In a South Dakota nonjudicial foreclosure, the bank will serve the homeowner a notice of sale at least 21 days before the foreclosure sale date. The bank will also publish the notice in a local newspaper before the foreclosure sale date.
South Dakota Foreclosure Protections
South Dakota foreclosure law provides protections in accordance with the federal Service Members Civil Relief Act
South Dakota law also provides protections to members of the South Dakota National Guard ordered to active duty service by the Governor of the State of South Dakota or the President of the United States.
Reinstatement and Redemption
South Dakota law does not allow a homeowner to cure the default and reinstate the loan before the foreclosure sale in a nonjudicial foreclosure. However, the mortgage contract may allow the homeowner to reinstate.
South Dakota law does allow the homeowner to reinstate the mortgage loan before the foreclosure sale in a judicial foreclosure. If the homeowner pays the amount due before the court enters judgment, the court will dismiss the foreclosure action. If the homeowner pays the amount due before the foreclosure sale, the court will postpone the foreclosure action until the homeowner defaults again.
Under South Dakota law, homeowners have one year, 180 days, or 60 days to redeem the home after the foreclosure, depending on the circumstances. In general, the homeowner is allowed one year to redeem the home after the foreclosure sale. However, if the mortgage is a short-term redemption mortgage, the redemption period is 180 days after the buyer from the foreclosure sale records a certificate of sale in the land records. If the homeowner abandons the home, the buyer can request that the court reduce the redemption period to 60 days.
South Dakota law allows bank to request a deficiency judgment after a nonjudicial foreclosure. If the bank purchases the property, the amount of the deficiency is limited to the difference between the total debt and the property’s fair market value.
Deficiency judgments can also be requested in judicial foreclosures. The deficiency judgment amount will be the total debt minus the foreclosure sale price, though the court will consider the property’s value when deciding the amount of the deficiency.
In South Dakota, if the foreclosed homeowner does not leave the home after the redemption period, the buyer can give a three-day notice to leave before initiating the eviction process. For information regarding how to avoid foreclosure in South Dakota, visit HUD.gov.