Foreclosure in South Carolina

Who decides your case

Foreclosure cases are decided by a judge, not a jury, and they're usually sent to a master, a court officer such as the Master-in-Equity. In counties without a Master-in-Equity, the court may appoint a lawyer called a Special Referee to act as the judge.

How a South Carolina foreclosure works, step by step

1. Except in rare cases, your servicer can't start the foreclosure process until at least 120 days after you fall behind.
2. A foreclosure is a lawsuit. It has to be filed at the courthouse, and you have to be properly served with the papers. The lender also files a notice of the pending lawsuit, called a lis pendens, with the county at least 20 days before judgment.
3. You have 30 days after you're served to file a written answer. If you don't respond in writing in that time, you could lose the chance to tell your side and be held in default.
4. Talking with your lender about a workout doesn't stop the case.
5. At the final hearing, if the lender proves its case, the judge sets the amount owed, deals with any other claims and sets a sale date. If a judgment is entered against you, you have 30 days after notice of it to file an appeal.
6. Before the sale, the home is advertised in your local paper for three weeks.
7. The sale is a public auction, and anyone, including you, can go and bid.
8. Bidding doesn't close on sale day. It stays open until the 30th day after the sale, not counting the sale day. The lender has to make its bid at the sale itself and can't bid again during those 30 days.
9. The master or other court officer who made the sale signs a deed to the buyer. You own your home and can stay there until it's sold and the Master-in-Equity issues a deed to the buyer.

Workouts and the end of the intervention program

South Carolina used to have a court-run foreclosure intervention process. The state Supreme Court rescinded the orders that set it up after the federal HAMP program ended. Judges and masters can still ask where things stand on loss mitigation, meaning workout options, in a case.

Federal rules bar a lender or servicer from making a first foreclosure filing, or asking for a judgment or order of sale, while you're keeping up with an offered forbearance or repayment plan.

How long it takes

Foreclosure generally can't legally start until you're at least 120 days behind. Once it starts, how long you have until the sale depends on your state.

For FHA loans, HUD's time frame runs from the first legal action until the lender has clear title to the home and possession of it. In South Carolina, that's 14 months, and the first legal action is a court complaint.

In most cases, bidding stays open until the 30th day after the sale itself.

These are official markers, not a forecast. Your case can move faster or slower, so don't count on extra time.

If the sale doesn't cover the loan, or brings in extra

If the home sells for less than what's owed, the court may order a borrower who's personally liable on the loan to pay the rest. That's called a deficiency.

• If a personal judgment is taken or asked for against you, you can ask the clerk of court for an appraisal of the property within 30 days after the sale.
• The court-approved appraisal value replaces the high bid, which can lower the deficiency you owe.

Anyone claiming money left over from the sale, called the surplus, must file a claim within 45 days after the sale officer files the statement of money received and paid out. If no one files a claim, the surplus is paid to the homeowner or lienholder who's entitled to it.

If someone offers to rescue you

The state Department of Consumer Affairs warns homeowners away from anyone who asks for an upfront fee, tells you to pay them instead of your lender, or tells you to transfer your deed or title to them. Companies that offer foreclosure help aren't allowed to charge fees up front. They can charge only after getting you a lender deal you want to accept.

Here's my honest note on that. Some of the ways I buy, like taking over your payments, do mean deeding the house to me. That's a real sale, and it should be treated like one: a written contract, a real closing, and time for you to have a lawyer or a housing counselor read it first. I never charge you a fee, upfront or later.

Free help in South Carolina

• SC Housing: avoid foreclosure. Free HUD-approved housing counselors work at 17 nonprofit or government agencies across the state. SC Housing's emergency mortgage help program is closed and won't reopen.
• SC Department of Consumer Affairs: help for homeowners. The state consumer agency's homeowner page.
• SC Judicial Branch: self-help resources. Court forms and guides.
• SC Judicial Branch: Master-in-Equity Court. The Master-in-Equity court's page.