Updated October 23, 2026
How foreclosure works in South Carolina
South Carolina is a judicial foreclosure state. The lender has to file a lawsuit, you are served with a summons and complaint, and the case is usually handled by a Master-in-Equity — a judge who hears real estate cases — or by a special referee in counties without one. After a hearing and a judgment, the house is sold at a public sale.
That process takes time, which means you usually have options. Do not ignore court papers: they include a deadline to respond, and missing it can limit your choices.
Options to look at first
- Call your loan servicer and ask about a repayment plan, forbearance, or a loan modification.
- Talk to a HUD-approved housing counselor. Their help is free, and they can deal with the servicer for you.
- Get legal advice. South Carolina Legal Services offers free help to eligible residents and publishes a homeowner foreclosure handbook.
When selling makes sense
If you have equity in the house, selling before the foreclosure sale lets you pay off the loan at closing and keep what is left. The closing attorney pays the lender directly out of the sale.
If you owe more than the house is worth, a short sale — where the lender agrees to accept less — or a deed in lieu of foreclosure may be options. Both need the lender's approval and usually take longer.
If you call us, tell us the date on any notice you have received. We will request a payoff and tell you honestly whether a sale can close before the deadline. If it cannot, we will say that too.
Watch out for
- Anyone who asks for a fee up front to "save" your house.
- Anyone who asks you to sign your deed over outside of a closing with an attorney.
- Offers to let you "rent back" your home after you transfer the deed to them.
- Pressure to decide before you have talked to a counselor or attorney.