21-48-14. Proof of value required for deficiency judgment after purchase by mortgagee--Other purchasers unaffected--Negotiability of instruments protected.
When any sale of real estate has been made by a mortgagee, trustee, or other person authorized to make the same at which the mortgagee, payee, or other holder of the obligation thereby secured becomes the purchaser and takes title, either directly or indirectly, before such mortgagee, payee, or other holder of the secured obligation as aforesaid, shall be entitled to any deficiency judgment against the mortgagor, trustor, or other maker of any such obligation whose property has been so purchased, he shall first establish to the satisfaction of the court in which such action for a deficiency judgment is pending that the property covered by such mortgage sold at foreclosure sale for its true market value or more at the time of such sale, and in adjudging any such deficiency the court in arriving at the amount of such judgment shall deduct from the amount of the mortgage indebtedness remaining unsatisfied after the sale of the mortgaged property the difference between the true market value of said property at the time of such sale and the amount for which it sold, if such amount was less than the true market value at the time of sale.
This section shall not affect nor apply to the rights of other purchasers or of innocent third parties nor shall it be held to affect or defeat the negotiability of any note, bond, or other obligation secured by such mortgage, deed of trust, or other instrument.
This section shall not apply to foreclosure sales made pursuant to an order or decree of court nor to any judgment sought or rendered in any foreclosure by action nor to any sale confirmed prior to July 1, 1937.
Source: SL 1937, ch 208; SDC 1939 & Supp 1960, ยง37.3007.
Structure South Dakota Codified Laws
Chapter 48 - Foreclosure Of Real Property Mortgage By Advertisement
Section 21-48-1 - Foreclosure by advertisement available if mortgage contains power of sale.
Section 21-48-2 - Recording of mortgage and assignments required before foreclosure.
Section 21-48-3 - Default required before foreclosure.
Section 21-48-6 - Publication of notice of foreclosure--Contents of notice.
Section 21-48-6.1 - Written notice of foreclosure sale required--Time--Parties.
Section 21-48-10 - Time and place of sale--Officer making sale.
Section 21-48-11 - Postponement of sale--Notice.
Section 21-48-12 - Sale by parcels--Sale terminated when sufficient amount raised.
Section 21-48-13 - Purchase by mortgagee at sale.
Section 21-48-15 - Costs, disbursements and attorney fees allowed from proceeds of sale.
Section 21-48-17 - Investment of surplus proceeds deposited with clerk.
Section 21-48-19 - Certificate of sale given to purchaser--Contents--Execution and recording.
Section 21-48-22.1 - Prior foreclosure sales validated despite defects--Rights barred by no action.
Section 21-48-24 - Affidavits recorded to show compliance with federal acts.
Section 21-48-25 - Interest vested in purchaser by recording of instruments.
Section 21-48-26 - Validation of sales prior to January 1, 1982--Pending proceedings.