H 4113 General Bill, By Cotty and J.H. Hodges
 A Bill to amend Section 29-3-680, Code of Laws of South Carolina, 1976,
 relating to mortgages and deeds of trust, foreclosure, and application for
 order of appraisal, so as to provide, among other things, that, except in any
 real estate foreclosure proceeding relating to a dwelling place or to a
 consumer credit transaction, a defendant against whom a personal judgment may
 be taken on a real estate secured transaction may waive appraisal rights if
 the debtors, makers, borrowers, and/or guarantors are notified in writing
 before the transaction that a waiver of appraisal rights will be required and
 upon signing a certain statement during the transaction; and to amend Section
 29-3-700, relating to mortgages and deeds of trust, foreclosure, and the order
 for appraisal be conducted by three disinterested state certified general real
 estate appraisers, rather than "three disinterested freeholders of the county
 in which the property is located".

   04/12/95  House  Introduced and read first time HJ-53
   04/12/95  House  Referred to Committee on Judiciary HJ-53
   05/18/95  House  Committee report: Favorable Judiciary HJ-33
   05/24/95  House  Objection by Rep. Scott & Lloyd HJ-15
   05/24/95  House  Amended HJ-15
   05/24/95  House  Objection by Rep. Govan, White & Cave HJ-16
   05/25/95  House  Objection withdrawn by Rep. Scott, Lloyd, Govan,
                     & White HJ-66
   05/25/95  House  Read second time HJ-66
   05/25/95  House  Unanimous consent for third reading on next
                     legislative day HJ-66
   05/26/95  House  Read third time and sent to Senate HJ-2
   05/29/95  Senate Introduced and read first time SJ-9
   05/29/95  Senate Referred to Committee on Judiciary SJ-9
   03/20/96  Senate Committee report: Favorable Judiciary SJ-20

COMMITTEE REPORT

March 20, 1996

H. 4113

S. Printed 3/20/96--S.

Read the first time May 29, 1995.

To whom was referred a Bill (H. 4113), to amend Section 29-3-680, Code of Laws of South Carolina, 1976, relating to mortgages and deeds of trust, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

ADDISON G. WILSON, for Committee.

A BILL

TO AMEND SECTION 29-3-680, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGES AND DEEDS OF TRUST, FORECLOSURE, AND APPLICATION FOR ORDER OF APPRAISAL, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT, EXCEPT IN ANY REAL ESTATE FORECLOSURE PROCEEDING RELATING TO A DWELLING PLACE OR TO A CONSUMER CREDIT TRANSACTION, A DEFENDANT AGAINST WHOM A PERSONAL JUDGMENT MAY BE TAKEN ON A REAL ESTATE SECURED TRANSACTION MAY WAIVE THE APPRAISAL RIGHTS IF THE DEBTORS, MAKERS, BORROWERS, AND/OR GUARANTORS ARE NOTIFIED IN WRITING BEFORE THE TRANSACTION THAT A WAIVER OF APPRAISAL RIGHTS WILL BE REQUIRED AND UPON SIGNING A CERTAIN STATEMENT DURING THE TRANSACTION; AND TO AMEND SECTION 29-3-700, RELATING TO MORTGAGES AND DEEDS OF TRUST, FORECLOSURE, AND THE ORDER FOR APPRAISAL, SO AS TO PROVIDE THAT THE APPRAISAL BE CONDUCTED BY THREE DISINTERESTED STATE CERTIFIED GENERAL REAL ESTATE APPRAISERS, RATHER THAN "THREE DISINTERESTED FREEHOLDERS OF THE COUNTY IN WHICH THE PROPERTY IS LOCATED".

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 29-3-680 of the 1976 Code is amended to read:

"Section 29-3-680. (A) In any real estate foreclosure proceeding a defendant against whom a personal judgment be is taken or asked, whether he has theretofore appeared in the action or not, may within thirty days after the sale of the mortgaged property apply by verified petition to the clerk of court in which the decree or order of sale was taken for an order of appraisal.

(B) Except in any real estate foreclosure proceeding relating to a dwelling place, as defined in Section 12-37-250, or to a consumer credit transaction, as defined in Section 37-1-301(11), a defendant against whom a personal judgment may be taken on a real estate secured transaction may waive the appraisal rights as provided by this section if the debtors, makers, borrowers, and/or guarantors are notified in writing before the transaction that a waiver of appraisal rights will be required and upon signing a statement during the transaction similar to the following:

`The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within thirty days after the sale of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the amount of any deficiency owing in connection with the transaction. THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED PROPERTY.'

This waiver may be in any document relating to the transaction; however, the required language must be on a page containing the signature of the person making the waiver and the capitalized sentence must be underlined, in capital letters, or disclosed in another prominent manner."

SECTION 2. Section 29-3-700 of the 1976 Code is amended to read:

"Section 29-3-700. Upon the filing of such petition and deposit with the clerk of a sufficient sum to pay the costs of the subsequent proceedings he shall issue an order that the property be appraised at its true value as of the date of sale by three disinterested freeholders of the county in which the property is located individuals who must be state certified general real estate appraisers as defined in Section 40-60-20(20), state certified residential real estate appraisers as defined by Section 40-60-20(21), or state licensed real estate appraisers as defined by Section 40-60-20(22), who shall not be parties to the action or connected in business with or related by blood or marriage within the sixth degree to any such party."

SECTION 3. This act takes effect upon approval by the Governor.