If you fall far enough behind on your mortgage payments in South Carolina, the bank (or the servicer on the bank's behalf) will start a judicial foreclosure. Judicial foreclosures go through the state court system.
At the end of the process, assuming you don’t successfully fight the foreclosure or work out a way to avoid it, your home is sold to a new owner at a foreclosure sale. The sale proceeds go towards repaying the money you borrowed.
When Does Foreclosure Start in South Carolina?
If the property is the borrower’s principal residence, in most cases, federal law requires the servicer to wait until the loan is more than 120 days overdue before officially starting the foreclosure by filing the lawsuit in court.
In some limited situations, though, the foreclosure can start earlier, like if you violated a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder. (12 C.F.R. § 1024.41 (2025.)
The 120-day waiting period is an excellent time to apply for loss mitigation if you want to try to avoid a foreclosure.
How Do Foreclosures Work in South Carolina?
Again, South Carolina foreclosures go through a judicial process. The foreclosing bank initiates the process by filing a lawsuit in court and serving you (the borrower) with a summons and complaint. The summons provides information about the lawsuit and the deadline, usually 30 days after service, to file an answer with the court. (S.C. Rules Civ. Proc. Rule 12(a) (2025).)
What Happens If You Do (or Don’t) Answer the Foreclosure Lawsuit
If you don’t respond to the suit, then the bank will ask for, and probably get, a default judgment (an automatic win). If you decide to file an answer, the bank can’t get a default judgment.
What Should I Put in a Response to a Foreclosure?
In the answer, you’ll need to admit to the allegations in the complaint that you know are true, deny those allegations that you think are incorrect, or say you don’t have sufficient information to admit or deny (and therefore you deny) certain allegations, as well as set forth any defenses that you have to the foreclosure.
Generally, you shouldn't admit to any of the bank's allegations or statements unless you know they're 100% correct.
The Bank Might Request a Summary Judgment
If your answer is insufficient (say the main facts of the case aren’t in dispute, any defenses you’ve raised lack merit, or you didn’t show that the bank or servicer violated the law), the bank will probably file a motion asking the court to grant summary judgment. Even if your answer does raise valid issues, the bank might still try for summary judgment. It’s usually best to hire an attorney to help you if you want to file an answer to the suit to avoid summary judgment.
Trial
A trial will likely occur if your answer raises potentially legitimate defenses to the foreclosure and the court denies summary judgment. To win the case, the bank must provide evidence to the court’s satisfaction.
What Happens If the Bank Gets a Foreclosure Judgment in South Carolina
If the bank gets a default judgment, is granted summary judgment, or wins at trial, the court will enter an order permitting the bank to sell the home at a foreclosure sale. A notice of the sale must be published in a newspaper and posted in several public places. (S.C. Code § 15-39-650, § 15-39-660 (2025).)
Foreclosure Sales in South Carolina
At the foreclosure sale, the bank usually bids on the property using a credit bid. Sometimes the bank bids the full amount of the debt owed, but sometimes it bids less than the full amount.
If the bank's credit bid is the highest bid at the sale, then the bank becomes the property's new owner. If a third party outbids the bank with a cash bid, that party becomes the property's new owner, and the sale proceeds go towards repaying the mortgage loan.
Right to Reinstate the Mortgage Before a Foreclosure Sale in South Carolina
While South Carolina law doesn’t expressly provide a right to reinstate the loan by paying the overdue amounts, many mortgages have a clause giving the borrower that right. Check your contract to see if you get the right to complete a reinstatement. If not, the bank might agree to let you reinstate the loan.
Deficiency Judgments in South Carolina Foreclosures
When a foreclosure sale fails to bring in enough to repay the mortgage debt, including fees and costs, the difference between the sale price and the total debt amount is called a “deficiency balance.” Many states, including South Carolina, allow the bank to get a “deficiency judgment” for this sum against the borrower. (S.C. Code § 15-39-660 and S.C. Rules Civ. Proc. Rule 71(b) (2025).)
If the lender reserves the right to seek a deficiency judgment, bidding on the property must remain open for an additional 30 days after the foreclosure sale. So, many lenders waive their right to a deficiency judgment to avoid this 30-day period.
Also, even if the lender seeks a deficiency judgment, you might be able to reduce the deficiency amount if you think the foreclosure sale price was less than the property's actual value. (S.C. Code § 29-3-680 (2025).)
No Redemption Period Following the Sale But Consider an Upset Bid
In some states, the borrower may redeem the home by paying off the entire mortgage debt, including interest and various other amounts, within a specific period after a foreclosure sale. Under South Carolina law, however, the borrower doesn't get a right of redemption after the sale.
But the borrower could potentially reclaim the home by making an upset bid (a bid higher than the winning bid). In South Carolina, if the bank doesn't waive a deficiency judgment in the foreclosure action, the court sets a 30-day upset bid period after the sale. The sale then remains open until the 30th day after the sale.
An upset bid won't be allowed if the bank waives the right to a deficiency judgment. (S.C. Code § 15-39-720, § 15-39-760 (2025).)
Talk to a South Carolina Foreclosure Lawyer
While this article provides an overview of a typical foreclosure in South Carolina, keep in mind that state and federal foreclosure laws are complicated, and cases can proceed differently depending on the circumstances. Also, servicers and banks sometimes make mistakes or skip steps, but most foreclosure errors go uncontested. In cases where the servicer or foreclosing bank omitted a required step, made an error, or violated state or federal foreclosure laws, you could have a defense that could force it to start the foreclosure over, or you might have leverage to work out an alternative.
Talk to a local foreclosure attorney immediately if you think your rights were violated. A lawyer can give you information about different ways to fight the foreclosure in court and about different ways to avoid foreclosure, like with a loan modification.
If you can’t afford to hire an attorney, you may contact the South Carolina Legal Aid Telephone Intake Service (LATIS) at 888-346-5592 or 803-744-9430 (Richland or Lexington counties) to find out if you qualify for free legal services.
A HUD-approved housing counselor can also provide helpful information (at no cost) about ways to prevent a foreclosure.