A South Carolina lender files a foreclosure lawsuit in circuit court after a borrower defaults. Before the court can schedule a hearing, the borrower pays the full amount of overdue payments, late fees, and attorney's fees demanded by the lender. Which of the following best describes the borrower's right in this situation under South Carolina law?
Correct Answer
A) The borrower has the right of reinstatement and may cure the default by paying all amounts owed, stopping the foreclosure
Under South Carolina law, a borrower generally has the right of reinstatement — the right to cure a default by paying all overdue amounts (arrears, late fees, and lender's costs including attorney's fees) before the foreclosure sale occurs. Successfully reinstating the loan stops the foreclosure and restores the loan to current status. This right typically exists before the foreclosure sale is completed and confirmed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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