A few months ago I fell behind in my mortgage payments. I just received paperwork from the court informing me that my lender is suing me to foreclose. I’m expecting to come into some money any day now, but I’m afraid it might not happen before the foreclosure sale takes place. I would like to keep my home. Is it possible to somehow get the house back after the foreclosure sale takes place? I live in South Dakota.
Yes, you can repurchase or “redeem” your home after losing it to foreclosure in South Dakota. (Exactly how much time you’ll get to redeem after the sale is explained in more detail below.)
To redeem, you would have to reimburse the purchaser (the person or entity who bought the home at the foreclosure sale) for the full price paid at the sale, plus interest and various other amounts the purchaser paid after the sale.
Your Right to Redeem After Foreclosure in South Dakota
Under South Dakota law, you can generally redeem the home within one year after the sale date (S.D. Codified Laws § 21-52-11). However, most residential mortgages of properties consisting of 40 acres or less in South Dakota are subject to what’s called the “One Hundred Eighty Day Redemption Mortgage Act.” These types of mortgages are often referred to as “short-term redemption mortgages.”
How to find out if you have a short-term redemption mortgage. To find out if you have this type of mortgage, check your mortgage contract. The first page of the document will be titled “Mortgage-One Hundred Eighty Day Redemption” and there will be a clause in the mortgage stating that this law governs the mortgage.
A short-term redemption period lasts 180 days. If your mortgage is a short-term redemption mortgage, you can redeem the home within 180 days (six months) after the purchaser from the foreclosure sale records a certificate of sale in the land records (S.D. Codified Laws § 21-49-30, § 21-52-11).
Redemption period for abandoned homes. Under the law, you are entitled to live in the home during the redemption period (S.D. Codified Laws § 21-49-12). If you abandon the home, the purchaser can ask the court to reduce the redemption period to 60 days (S.D. Codified Laws § 21-49-13(8), § 21-49-38).
How Much You'll Have to Pay to Get Your Home Back
In order to redeem, you must reimburse the purchaser for the price paid at the foreclosure sale, plus interest and any sums the purchaser paid to protect its interest in the property, including (for example) amounts paid for:
- insurance, and
- payments on superior liens (S.D. Codified Laws § 21-49-34, 21-52-14).
Possible Ways to Save Your Home Before the Foreclosure
Don’t forget that there may be other alternatives to foreclosure available to you before the foreclosure sale as well. For example, you might be able to:
- get current on the mortgage by paying the past-due amounts (called “reinstating” the loan)
- redeem the home before the sale by paying off the full amount of the mortgage debt (called “the equitable right of redemption”), or
- arrange a mortgage modification, forbearance agreement, or repayment plan.
How to Locate South Dakota’s Redemption and Foreclosure Laws
To find the statutes that discuss your right to redeem the home in South Dakota, go to Title 21, Chapter 49 and Chapter 52 of the South Dakota Codified Laws.
To learn more about foreclosure laws and procedures in South Dakota, visit Nolo’s South Dakota Foreclosure Law Center.