Can the lender come after you for the rest? Deficiency judgments in South Carolina

Deficiency rules in South Carolina, point by point

• The deficiency is part of the court case

  In the foreclosure judgment

  The court can enter a personal judgment for the debt and order the sale at the same time, then order you to pay any part of the debt the sale does not cover. This applies only if you are personally liable on the debt, and a co-signer or guarantor can be added to the case too.

  S.C. Code Ann. §§ 29-3-650, 29-3-660

• Check whether the lender waived it

  When you read the complaint and the sale notice

  If the complaint says no personal or deficiency judgment is demanded and the right is waived, the sale notice must say so and the bidding closes on sale day. If a deficiency is demanded, bidding stays open for 30 days after the sale so others can raise the price.

  S.C. Code Ann. §§ 15-39-720, 15-39-760

• Ask for an appraisal within 30 days

  Within 30 days after the sale

  File a verified petition with the clerk of court where the sale was ordered and deposit enough to cover the costs. The clerk orders three state-certified or licensed appraisers: you name one, the lender names one, and the court picks the third.

  S.C. Code Ann. §§ 29-3-680(A), 29-3-700, 29-3-710

• How the appraisal changes the deficiency

  Appraisers report within 30 days of appointment

  The appraisers set the true value on the sale date. If that value minus the sale price is equal to or more than the deficiency, the deficiency is cancelled. If it is less, the deficiency is reduced by that amount, and either side can appeal within 10 days.

  S.C. Code Ann. §§ 29-3-720, 29-3-740

• This right cannot be waived for your home

  Any time

  A lender can get a written waiver of appraisal rights in some business loans, but not in a foreclosure of a dwelling place or a consumer credit transaction.

  S.C. Code Ann. § 29-3-680(B)

• How long it lasts and wage garnishment

  Lien lasts 10 years from judgment

  A judgment is a lien on your South Carolina real estate for 10 years once entered in the county's judgment records. South Carolina bars wage garnishment for debts from a consumer loan, which can include a home equity or second mortgage, but a first mortgage usually does not count as a consumer loan for this rule.

  S.C. Code Ann. §§ 15-35-810, 37-5-104, 37-3-105

• Short sale and deed in lieu

  Before you sign

  We found no South Carolina statute that sets a deficiency rule for a short sale or deed in lieu, and the appraisal right applies to foreclosure sales. The written agreement controls, so ask for language releasing you from any balance.

The short answer in South Carolina

Common questions in South Carolina