What Is the Foreclosure Process in South Carolina?
South Carolina requires judicial foreclosure, which means through a court. When the county court where the property is finds that the borrower is in default, the borrower is ordered to make all payments due, including any arrears. He must also pay any costs borne by the lender, according to "The Homeowners Guide to Foreclosure" by James Wiedemer. South Carolina mortgagors don't have the right of redemption (reclaiming the house by paying what's due once the foreclosure is completed.)
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Notice of Sale
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When the mortgagor doesn't pay the money owed in the court-specified period, the court orders sale of the property. The Notice of Sale includes a full property description, time and location of the sale, the mortgagor's name, and the mortgagee or lender's name. The court posts the notice at the courthouse door as well as two other frequently trafficked local spots. The notice is posted at least 21 days before the auction. The notice also runs in a local newspaper.
Time and Place of Property Sale
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The county court judge can hold the property sale at any location. Most often, the auction occurs at the courthouse. The county sheriff conducts the sale of the property for cash. Any foreclosure sale occurring in South Carolina happens on the first Monday of each month. If that Monday is a holiday, the sale occurs the first Tuesday of the month. Property sales occur between the hours of 11:00 a.m. and 5:00 p.m. EST.
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Upset Bids
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The high bidder at the property sale gives the sheriff 5 percent of the purchase price to secure the property. The bidder must pay cash. If the sheriff's office demands the remaining 95 percent -- called the deficiency -- of the purchase price within 30 days, the bidder must pay the remainder on his tab. If the bidder doesn't pay the deficiency on demand, the property sale stays open for 30 days. This scenario creates an "upset sale." Any bidder may present a higher bid than the property sale winner and win the right to purchase the property, according to the Master-in-Equity's office of Horry County, South Carolina.
Unless an objection to the sale price is presented to the court within three months from the sale date, the sheriff's office then transfers the property deed to the high bidder.
Deficiency Judgment
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Mortgagees in South Carolina may file against the mortgagor after the foreclosure sale. The lender is entitled to pursue the delinquent borrower for any losses. The lender may recover loan losses by winning a deficiency judgment against the borrower.
Homestead Exemption
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South Carolina offers the borrower real property asset protection of $50,000 in bankruptcy, according to S.C. Code Ann. § 15-41-30 (A)(1). Joint owners of the real property may double this amount. The homeowner should file the "homestead declaration" after living in the property for at least three years and four months. The property Notice of Sale must reference the exemption amount. Any bid for the property below the exemption amount won't be accepted by the court. The homeowner withholds the homestead exemption from property sale proceeds. The court distributes any proceeds above the exempt amount to creditors.
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References
- "The Homeowner's Guide To Foreclosure"; James Wiedemer; 2008; Page 30
- Foreclosure.com: Right of Redemption
- "The New Bankruptcy: Will It Work For You?"; Stephen Elias; 2009; Page 116: Deficiency Judgment
- "Chapter 13 Bankruptcy:"; Stephen Elias, Robin Leonard; 2009; Page 200: Homestead Exemption
- Horry County, South Carolina: Master-in-Equity
- State of South Carolina: S.C. Code Ann. § 15-41-30 (A)(1)
Resources
- Photo Credit South Carolina state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
