How Foreclosure Works in South Dakota

Both. A mortgage containing a power of sale may be foreclosed "by advertisement" (without a lawsuit), and mortgages may also be foreclosed by court action, with the sale made under a court decree. If a lender starts a foreclosure by advertisement, the homeowner, a successor, or anyone with a lien or recorded interest can apply to the court, without stating reasons, to require the lender to foreclose by court action instead.

For a foreclosure by advertisement, the notice of sale must be published at least once a week for four successive weeks in a legal newspaper in the county. It must state the parties, the mortgage date, the amount claimed due, a description of the property, the time and place of sale, a description of the default, that the homeowner can apply for foreclosure by action, and the names and addresses of others with liens or recorded interests. At least 21 days before the sale, the lender must serve a written copy of the notice on the homeowner and any affected lienholders. Sales under a court decree use the same notice as an execution sale.

For a foreclosure by advertisement, the statutes set these minimums: publication once a week for four successive weeks, and personal written notice to the homeowner at least 21 days before the sale. After the sale, the homeowner generally has a one-year redemption period (180 days for a short-term redemption mortgage).