Timeline:
90 Days
Redemption:
Yes
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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South
Dakota foreclosure law allows lenders to initiate foreclosure
by either the Non-Judicial or Judicial Foreclosure process.
If no “power of sale” clause is present in the original loan
documents, then the lender must pursue Judicial Foreclosure
procedures and sue the borrower in court to obtain an order
to foreclose.
If a
“power of sale” clause is present in the original loan documents,
then the lender is able to use the Non-Judicial Foreclosure
procedures. This clause authorizes the lender to sell the property
to satisfy the balance due on the loan in the event the borrower
defaults. If the clause specifies the time, place, and terms
of the sale, then those details must be adhered to. |
The
notice of foreclosure and sale must include the time and date
of the sale, list the identities of the borrower and lender,
include the original date of the mortgage, and list the amount
due as well as a description of the property. The notice must
be published in a newspaper generally circulated in the county
in which the property is located for a period of four (4) consecutive
weeks. No less than twenty-one (21) days before the scheduled
sale date, the borrower and all other lien holders must be served
with a copy of the notice.
The
sale is conducted by the county sheriff or a deputy at the place
designated in the notice of foreclosure and sale. The time of
the sale may be between 9:00 AM and 5:00 PM . If the sale is
postponed, a notice of the postponement must be filed in the
same newspaper in which the original notice of sale was published.
Publication of the new sale date must be continued until the
new sale occurs.
The
borrower has the right to redeem the property after the sale.
The length of time of the redemption period varies. Properties
that have been abandoned have a sixty (60) day redemption period.
If the property is not abandoned and includes forty (40) acres
or less, the redemption period extends to one-hundred and eighty
(180) days. If the property contains more then forty (40) acres
and is not abandoned, the borrower has one year in which to
redeem the property. If the original loan documents define the
redemption period otherwise, then that period will be followed.
The
lender may sue the borrower for a deficiency judgment on a case
by case basis.
South Dakota Foreclosure Law