| South Dakota
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 subsequent) 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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