 South Dakota Loan Modification Guidelines
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
If the mortgage contains a power of sale clause, then it may be foreclosed
by advertisement, provided that there is a default on the mortgage. Alternatively,
the lender may sue for a judgment against the borrower for the amount of
the debt due and an order of sale.
Non-judicial Foreclosure Preliminary Notices
Contents
The foreclosure notice must give the names of the borrower and lender,
the mortgage date, the amount due, a description of the premises and the
time and place of sale.
Advertising
A foreclosure notice must be published once a week for four successive
weeks in a newspaper in the county where the premises are located.
Sale Procedures
Time
The time must be between 9 A.M. and 5 P.M.
Manner
The sale is made by the sheriff at public auction to the highest bidder.
The lender may bid, too. The winner gets a certificate of sale. Once the
redemption period runs out, the buyer gets a deed. Any surplus remains
on deposit with the clerk of the court for three months for possible claimants.
Postponement
The sale may be postponed.
Judicial Foreclosure
A lender may foreclose by filing a lawsuit in the circuit court of the
county where the property is located. Service of process may be obtained
by publication, if necessary. The lender may seek either or both of an
order of sale and a judgment for the balance due on the mortgage. Once
the court finds foreclosure to be appropriate, then the sale may be made
by a referee or sheriff, or anyone else appointed by the court. If the
lender plans to bid, but the borrower submits competent evidence as to
value, then the court may order the premises to be sold at their fair and
reasonable value less the balance due on the loan. The borrower will receive
a certificate of sale at the foreclosure. A deed will subsequently be issued
once the redemption time period expires.
Deficiency
If the mortgage is a purchase money mortgage (a loan or loans used to
buy the person's property) then a deficiency judgment is not permitted
in South Dakota.
Redemption
If the tract of land is 40 acres or less, and the mortgage contains a
special power of sale clause, then a 180-day period of redemption exists.
If the property is abandoned, the time period becomes only 60 days. Generally
unless the special short-term redemption mortgage provisions apply, all
persons may redeem within one year of the date of sale.
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