South Dakota Redemption Law

Redemption is a process used by some states to allow a homeowner to redeem or “get back” his or her property after a foreclosure.  In most situations the homeowner must pay the entire amount of the sales price to redeem the property.  Depending on how much is owed on the property at the time of the foreclosure, redemption can be very cost prohibitive.  

South Dakota has the following rules regarding redemption of property:

There is no right to redeem the property after a foreclosure if the sale was conducted as a non-judicial foreclosure.  

If the foreclosure was conducted by a judicial foreclosure, the general rule is that redemption is available for one year after the foreclosure.  S.D. Codified Laws § 21-52-11.  But the redemption period may be shorter is your mortgage is classified as a “Short Term Redemption Mortgage” as outlined in Chapter 21-49 of the S.D. Codified Laws.

Please keep in mind that these are the general redemption rules in South Dakota and states can have different rules for different types of foreclosures (i.e. tax sales, home-equity loans, etc.).  If you believe you have the funds to redeem your property, you should speak to an attorney licensed in your state as soon as possible to ensure that 1) you have the ability to redeem the property given your particular circumstances; 2) are still within the allowable time frame for a redemption; and 3) that you have correctly calculated the amount necessary to redeem the property.

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