A homeowner in Greenville, South Carolina defaults on a mortgage with an outstanding principal balance of $180,000. The lender obtains a judicial foreclosure judgment and the property is sold at a court-confirmed foreclosure sale for $210,000. The court-approved foreclosure costs and attorney fees total $12,000, and the outstanding mortgage balance at time of sale is $180,000. How much surplus proceeds will be returned to the borrower after the lender's claim and foreclosure costs are satisfied?
Correct Answer
A) $18,000
Under South Carolina's judicial foreclosure process (S.C. Code Ann. § 29-3-680 et seq.), when a foreclosure sale generates proceeds exceeding the amount owed, the surplus is distributed to junior lienholders and then to the borrower. Calculation: Sale price $210,000 − outstanding mortgage balance $180,000 − foreclosure costs and attorney fees $12,000 = $18,000 surplus returned to the borrower. The court confirms the sale and oversees distribution of proceeds, which is a hallmark of SC's court-supervised judicial foreclosure system.
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