South Carolina allows mortgage lenders to use the judicial foreclosure process. When borrowers default on loans, the U.S. Department of Housing and Urban Development requires lenders to mail them a demand notice.
HUD.gov explains that borrowers receiving notices have 30 days to meet past-due payments. If you received a lender’s demand letter, you may avoid foreclosure by paying the past-due amount. Without a payment, your lender may obtain a court order to foreclose on your property and sell it through an auction.
Posting a notice of property available at an auction
As described by Foreclosurelaw.org, lenders must receive a decree of sale from the county court that covers the property’s location. When reviewing a lender’s claim, the court may allow the borrower to respond by paying the delinquent balance plus late fees or legal costs.
With authorization to foreclose, lenders must publish a notice of sale in a local newspaper. It must describe the property and the time and location of the auction. Both the borrower and lender names must appear in the notice.
Selling the property on the specified auction date
Unless auction dates land on holidays, properties must sell on the first Monday of the month. Interested buyers may place their bids at the courthouse between 11:00 am and 5:00 pm. Auctions may remain open for 30 days and parties may continue bidding. After 30 days, the highest bidder may buy the home.
The law provides three months from the auction’s closing date for someone to object. If there is no challenge, the sheriff endorses the deed. This final step confirms the sale.
As noted by Bankrate.com, federal law requires lenders to help borrowers with delinquent mortgages. You may contact your lender and ask for assistance such as a loan modification to prevent your property from going to auction.