Foreclosure Process Overview
South Dakota foreclosures are accomplished most commonly through the court system. Certain mortgages may be foreclosed either in court or via advertisement, though foreclosure by advertisement is uncommon.
In South Dakota, the foreclosure process is initiated by the lender submitting a complaint in court of the borrower’s default. For most foreclosures, the borrower has 30 days to answer court filing before the foreclosure process continues.
South Dakota does not require lenders to mail a default notice to the borrower before initiating the foreclosure process; however, many mortgages require this.
Notice of Sale / Auction
Once the court has ruled that the foreclosure can continue, the lender publishes a notice of foreclosure sale in a local newspaper. In addition, at least 21 days before the sale, the lender must deliver a written copy of sale notice to the borrower and any lien holders.
Once publication requirements are met, the county sheriff conducts a sale between the hours of 9 a.m. and 5 p.m. Anyone, including the lender may bid at the sale. After sale, the winning bidder is provided with a sale certificate and is entitled to a deed transferring ownership once the redemption period expires.
The borrower and any lien holders have the right to redeem the property and void the sale by repaying the total amount of the amount owed. Redemption also requires written notice to the purchaser and the person making the sale. The redemption period is six months unless the property is vacant, in which case the redemption period is two months.
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