South Dakota Foreclosure Process and Laws


Quick Facts About the South Dakota Foreclosure Process

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 90 days

Right of Redemption: Varies

Deficiency Judgments Allowed: Varies

Lenders in South Dakota may use a judicial or non-judicial process to foreclose on mortgages in default.

Judicial Foreclosure
When no power of sale is present in a mortgage, the judicial foreclosure process is done by filing a lawsuit to obtain a court order to foreclose. The property can then be sold to the highest bidder at an auction.

Non-Judicial Foreclosure
When a power of sale clause is present in a mortgage, this means that the borrower has pre-authorized the sale of the property to pay off the balance in the event of their default. The lender himself or a trustee has the power to sell the property following the guidelines stated in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines
If the power of sale clause specifies the time, date and terms of sale, these must be followed. If not, the non-judicial process is caried out by:

  1. A notice of foreclosure must be published in the newspaper in the county where the property is located, once a week for four consecutive weeks.
  2. A written copy of the foreclosure notice must also be sent to the borrower and any lien holder with interest in the property being foreclosed.
  3. The notice must contain the borrower and lender’s names, the mortgage date, the amount due, a description of the property, and the time and place of sale.
  4. The sale will be conducted by the sheriff from 9am-5pm. Anyone can bid, including the lender, and the winning bidder will be given a certificate of sale.
  5. The foreclosure sale may be postponed as long as a notice is place in the newspaper where the original ad was published, until the time the postponed sale occurs.

If a power of sale clause exists and the property is less than 40 acres, a 180 day redemption period exists. If the property is abandoned, the time period is reduced to 60 days. Unless short-term redemption mortgage provisions apply, borrowers may redeem within one year starting on the date of sale.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Sioux Falls Field Office

Department of Housing and Urban Development
4301 West 57th Street Suite 101

Sioux Falls, SD 57108

Phone: (605) 330-4223

Fax: (605) 330-4465

Jurisdiction: State of South Dakota

Sheryl Miller
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.

Monday through Friday