Best Mortgage Lawyers in South Carolina

About Mortgage Law in South Carolina, United States

Mortgage law in South Carolina governs the legal agreements that allow individuals or entities to use real property as collateral for a loan. A mortgage is a binding contract between a property owner and a lender, such as a bank or mortgage company. In South Carolina, mortgages are commonly used for purchasing homes, refinancing existing loans, or obtaining funds for other purposes using property as security. The state follows judicial foreclosure procedures, meaning that a lender must go through the court system to foreclose on a property in case of borrower default. Understanding your rights and obligations under South Carolina mortgage law is crucial whether you are buying, selling, or facing financial trouble related to your property.

Why You May Need a Lawyer

There are several situations where legal advice from a mortgage lawyer can be invaluable:

• Home Purchase or Sale: Reviewing and explaining mortgage documents, ensuring proper legal disclosures, and addressing any title issues.
• Refinancing: Navigating complex refinancing agreements and ensuring favorable terms.
• Foreclosure Defense: Assisting homeowners who are behind on payments and facing potential foreclosure.
• Loan Modification: Negotiating changes to your mortgage terms to make payments more manageable.
• Disputes with Lenders: Addressing claims of predatory lending, fraud, or contract violations.
• Inheritance and Estate Issues: Handling mortgages on inherited properties.
• Transferring Property: Managing the legal process when a property with a mortgage is sold, transferred, or inherited.

Local Laws Overview

South Carolina has several key laws and regulations impacting mortgages:

• Judicial Foreclosure: All foreclosures in South Carolina require court approval. The lender must file a lawsuit against the borrower to obtain the right to sell the property at a foreclosure auction.
• Right of Redemption: Unlike some states, South Carolina does not grant a post-sale right of redemption, meaning homeowners cannot reclaim their property after a foreclosure sale.
• Deficiency Judgments: Lenders may seek a deficiency judgment if the sale of the property does not cover the outstanding mortgage balance, subject to certain conditions and court approval.
• Deed of Trust vs. Mortgage: South Carolina primarily uses mortgages rather than deeds of trust. This affects the legal process for enforcing lender rights.
• Predatory Lending Laws: The state has additional statutes to protect consumers from unfair or deceptive lending practices, especially concerning high-cost or subprime loans.
• Disclosure Requirements: Lenders must provide clear information about loan terms, interest rates, and potential risks to borrowers.

Frequently Asked Questions

What is the difference between a mortgage and a deed of trust in South Carolina?

In South Carolina, most home loans are secured with a mortgage, not a deed of trust. This means that a foreclosure must proceed through the courts, in a process called judicial foreclosure.

How long does the foreclosure process take in South Carolina?

The foreclosure process typically takes 90 to 120 days or longer, depending on court schedules and whether the homeowner contests the foreclosure.

Can a lender collect the remaining balance if my home sells for less than what I owe?

Yes, lenders can pursue a deficiency judgment for the remaining balance after foreclosure, though they must request it in the original lawsuit and the court must approve it.

Do I have a right to reinstate my mortgage after default in South Carolina?

South Carolina does not have a statutory right to reinstate a mortgage by paying off missed payments before the foreclosure sale, but some mortgage agreements may allow it. Check your loan documents or consult with your lawyer.

How are reverse mortgages regulated in South Carolina?

Reverse mortgages are legal and regulated by both federal and state law, with special disclosure and counseling requirements to protect seniors from predatory practices.

What should I do if I receive a foreclosure notice?

Contact an attorney immediately to understand your rights and options, which may include contesting the foreclosure, seeking a loan modification, or pursuing other solutions.

Can I sell my home during foreclosure in South Carolina?

Yes, homeowners can sell their property up to the point of the foreclosure sale, which may help avoid foreclosure and protect your credit.

Are there programs to help me avoid foreclosure?

Yes, resources such as the South Carolina State Housing Finance and Development Authority offer assistance programs for homeowners facing financial hardship.

Is my lender required to notify me before foreclosing?

South Carolina law requires lenders to give proper notice of foreclosure through court filings and, in some cases, advertisements of the foreclosure sale.

What happens after a foreclosure sale in South Carolina?

After the foreclosure auction, the high bidder takes title to the property. There is no right of redemption, so former owners cannot reclaim the home once sold.

Additional Resources

• South Carolina State Housing Finance and Development Authority
• Consumer Protection Division of the South Carolina Department of Consumer Affairs
• South Carolina Judicial Department (for foreclosure court forms and information)
• Local housing counseling agencies approved by the U.S. Department of Housing and Urban Development (HUD)
• South Carolina Bar Association Lawyer Referral Service

Next Steps

If you are facing a mortgage related issue, it is important to seek assistance promptly. Here are steps you can take:

• Gather all documentation related to your mortgage, loan statements, payment history, and any foreclosure notifications.
• Contact a qualified mortgage attorney or a local legal aid organization specializing in housing law.
• Review your legal rights and possible defenses with your attorney, especially if you are at risk of foreclosure.
• Explore options such as loan modification, refinancing, short sale, or government assistance programs.
• Act quickly, as the legal timelines in foreclosure cases can be strict and missing them puts your home at risk.

A knowledgeable legal professional can guide you through the complexities of mortgage law in South Carolina and help protect your interests every step of the way.