South Carolina General Assembly
117th Session, 2007-2008

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S. 565

STATUS INFORMATION

General Bill
Sponsors: Senator Thomas
Document Path: l:\council\bills\ggs\22776mm07.doc

Introduced in the Senate on March 13, 2007
Currently residing in the Senate Committee on Banking and Insurance

Summary: Foreclosure proceedings

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   3/13/2007  Senate  Introduced and read first time SJ-8
   3/13/2007  Senate  Referred to Committee on Banking and Insurance SJ-8

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/13/2007

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 29-3-680, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPLICATION FOR AN ORDER OF APPRAISAL IN CONNECTION WITH A FORECLOSURE PROCEEDING, SO AS TO PROVIDE THAT THE STATUTORY RIGHT TO APPRAISAL PURSUANT TO APPLICATION TO THE COURT MUST NOT BE WAIVED BY A DEBTOR, MAKER, BORROWER, GUARANTOR, OR OTHER OBLIGOR, AND TO PROVIDE THAT A CREDITOR WHO ELECTS TO SEEK A PERSONAL JUDGMENT ON THE UNDERLYING DEBT AS OPPOSED TO A FORECLOSURE OF THE MORTGAGE MAY RECOVER ONLY THE DIFFERENCE BETWEEN THE STATUTORY APPRAISED VALUE AND THE AMOUNT DUE ON THE DEBT.

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

SECTION    1.    Section 29-3-680 of the 1976 Code, as last amended by Act 430 of 1996, is further amended to read:

"Section 29-3-680.    (A) In any real estate foreclosure a proceeding on a real estate secured transaction a defendant against whom a personal judgment is taken or asked, whether he has theretofore already appeared in the action or not, may apply 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 A defendant against whom a personal judgment may be taken on a real estate secured transaction including, but not limited to, the debtor, maker, borrower, and guarantor, may not waive the statutory 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.

(C)    If the creditor elects to sue on the debt rather than foreclose on the mortgage, the creditor is entitled to recover only the difference between the amount due on the debt and the statutory appraised value as approved by the court."

SECTION    2.    This act takes effect upon approval by the Governor.

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