Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In South Carolina, foreclosure is a judicial process, meaning that the lender must go through the courts to terminate a borrower's interest in the property due to default on mortgage payments. The process begins when the lender files a lawsuit after the homeowner fails to make the agreed-upon payments. South Carolina does not have a statutory right of redemption, which would allow the homeowner to reclaim the property by paying the full amount owed before a specific deadline after the foreclosure sale. Once the court declares a foreclosure, the property is typically sold at a public auction. The proceeds from the sale are used to pay off the mortgage debt, and any remaining funds are paid to the homeowner. If the sale does not cover the mortgage debt, the lender may be able to obtain a deficiency judgment against the borrower for the remaining amount. Homeowners facing foreclosure in South Carolina are advised to consult with an attorney to explore their legal options, which may include loan modification, short sale, or bankruptcy.