Can foreclosure be stopped in SC?

Can foreclosure be stopped in South Carolina? Foreclosure in South Carolina  is the legal process where a lender can repossess your home. Once they foreclose on your home they can then sell it to try to recover some of the debt owed. Once you default on your mortgage payments, your lender has the right to begin the foreclosure process. However, even though the foreclosure process has been initiated, you do still have some options available to try and save your home. One of the most common questions we get at our office is how long does it take to foreclose on a house in South Carolina? Generally it takes 4-6 months but there are many variables that can change this time line to include COVID. We are also asked what happens at a foreclosure hearing?  The answer is it depends on your specific facts. Generally a foreclosure judge will listen to an defenses and set a time for a sale date. Finally we are also asked, how may missed payments before foreclosure begins? Generally we see at least 120 days of missed payments before the foreclosure process starts in South Carolina equity court.

There are many ways to stop a foreclosure in South Carolina. The following is a partial list of ways: (1) Chapter 13 bankruptcy, (2) loan modifications, (3) repayment plans (3) reinstate your mortgage loan, (4) forbearance, (5) refinance, (6) sell your home before the foreclosure sale, and (7) deed in lieu. Please not this is only  a partial list of ways. Below I will go into more detail on some of these ways.

Partial Claim

One option for avoiding foreclosure is to seek a one-time interest-free loan from HUD. They will charge a lenders a fee to use its services but you can receive an advance loan in order to make your loan current. In order to qualify, you will have to prove that your current financial situation is solvent and sign a promissory note with your lender stating that you will repay your loan over time. After doing this, your lender will have a lien on your house until your loan is repaid.

Mortgage Modification/Loan Modification

You can modify your mortgage with your lender to avoid foreclosure. Your options include extending the length of your mortgage, refinancing your debt or reducing your interest rate. These options will reduce your mortgage payments, helping you avoid foreclosure. You will have to prove to your lender that your net income has been significantly reduced since the time you signed the loan. In addition, South Carolina bankruptcy judges and foreclosure judges allow loan modifications to be executed on a portal in lieu of foreclosure.

Special Forbearance

You can request a special forbearance from your mortgage lender. This will temporarily reduce or stop your monthly payments while the lender works with you to create a new mortgage repayment plan. You will need to prove a loss of income and/or you are experiencing unexpected rise in monthly expenses. After the special forbearance period your lender will require you to start making higher payments (higher than your original payment amount) for a certain period until your loan is current.

Chapter 13 Bankruptcy

You can also file for Chapter 13 bankruptcy but only do this as a last resort. This type of bankruptcy will allow you to meet with your mortgage lender and your other creditors to work out repayment plans. Once a payment plan is in place, it is very important to make all payments as agreed upon to avoid foreclosure.

Consult a Qualified Bankruptcy Attorney

If you are in pre-foreclosure and your lender will not work with you, contact a bankruptcy attorney. A bankruptcy attorney will have knowledge about the foreclosure process in your state and may be able to contact your lender and create some type of repayment plan or solution for your personal situation. Attorney Daniel Stone at Stone Law Firm has been representing bankruptcy and foreclosure clients in the Columbia and Florence, SC areas since 2001. If you need help with foreclosure, bankruptcy or any other financial debt struggles call Stone Law Firm today at 803-407-6565 or submit a consultation request form at Remember, that with foreclosure, time is of the essence. Do not put off calling for help!

- Stone Law Firm