The South Dakota foreclosure laws currently in force in the state of South Dakota allows lenders to use the services of judicial and non-judicial processes to foreclose deeds of trust or mortgages that find a place in foreclosure listings due to default. There is a variation in the time typically taken by a foreclosure process which is determined by the circumstances surrounding the foreclosure. The security instruments recognized by the state are the deeds of trust and mortgages. The foreclosure procedure used determines if deficiency judgments and the borrower's Right of Redemption are allowed or not.
The borrower's Right of Redemption is in effect until one year from the date on which the property is sold. If a Power of Sale clause is present in the mortgage agreement and if the size of the property is less than forty acres, the borrower is entitled to a redemption period of 180 days. The time frame for abandoned pieces of property is sixty days.
A Power of Sale clause is a critical feature present in certain mortgage agreements. Under this clause, the borrower agrees to sell the property to repay the balance of the loan if he defaults on his payments. Foreclosures proceedings that do not have such a Power of Sale clause use judicial foreclosure processes. This requires the court to declare a foreclosure, after which the property is auctioned off to the highest bidder.
Security instruments that do contain the Power of Sale clause use non-judicial foreclosure processes. Under this process, the lender does not require a court order to auction off the property.
Procedures for foreclosure sales under South Dakota foreclosure laws
Security instruments that contain a Power of Sale clause follow non-judicial foreclosure proceedings. The terms of the proceeding are normally mentioned in the clause and both parties are requires to adhere to them strictly. In the even that the terms are unspecified, the state lays down rules and guidelines to be followed.
The lender is required to publish a foreclosure notice once a week for four continuous weeks in a newspaper that is local to the county in which the distressed property is located.
The borrower and any lien holders are entitled to receive a copy of the notice from the lender at least 21 days prior to the date of the foreclosure sale. The details that the notice is required to contain are the names of both parties - the borrower and lender or his authorized representative, the recorded date of the mortgage, the amount due, a property description, and the time and place of the foreclosure sale.
The sheriff of the county under whose jurisdiction the distressed property falls conducts the foreclosure sale. The timing is usually from 9 a.m. to 5 p.m. The procedure for the foreclosure sale is by public auction. The person bidding the highest amount receives the rights to the property.
