You need to know about the foreclosure laws in the state, if you are interested in buying South Carolina foreclosures. These laws help you in identifying the foreclosure procedures and the amount of paperwork you have to do for purchasing the property. Homebuyers are interested in foreclosures with minimal paperwork, whereas real estate investors are ready to do anything required by law if they are on the verge of getting cheap properties.
Only judicial foreclosure
In South Carolina, lenders cannot foreclose any property outside of the court. Only judicial foreclosures are allowed in most cities of the state. When a borrower misses several mortgage payments, the lender files a complaint against the borrower and gets a decree of sale from the court. This can be issued by the court having jurisdiction in the location of the property.
What can a borrower do?
The court does not immediately declare a decree of sale in favor of the lender. The borrower is given time to repay all the debts along with the court charges. The amount of time given for the borrower is solely under the discretion of the court. Within this time, the borrower can sell his property and stop foreclosures by paying his debts to the lender. When the borrower becomes unable to pay his debts within the specified time, the court will order the lender to sell the property and recover his debts.
Sale proceedings of foreclosed property
Foreclosures sale can happen only at the courthouse in a public sale. The lender may get an order from the court to conduct the sale at a different location. At the courthouse, the notice of sale including time and place of sale along with lender details can be found. On the date of sale, bidding starts at 11.00 AM and it will be open until 5.00 PM. However, the sheriff of the county may close the bid earlier.
In South Carolina foreclosures, even after the date of sale, a thirty day time limit is given for any person to place a higher bid. This is called upset bidding. After the date of sale, the sheriff will wait for three months for any objection to sale price of the property. The deal is then closed after this duration.
