South Dakota Mortgage Relief Program: Where Homeowners Turn Now That HAF Is Over

What happened to SD HAF

Congress created the Homeowner Assistance Fund in 2021, and each state designed its own program. South Dakota Housing, the state housing finance agency formerly known as SDHDA, ran SD HAF. Referral directories such as 211 also listed it under the name SD Cares Homeowner Assistance Program. In its 2022 report to Treasury, the agency said the fund paid toward late mortgage payments, HOA fees and liens, homeowner’s insurance, utility and internet bills, and delinquent property taxes. Caseworkers contacted the servicer directly once an applicant qualified.

South Dakota’s plan was generous for a small state. The agency told Treasury it had more than enough money for the people who qualified, partly because many owners had already been caught up with earlier CARES Act funds.

Today the SD HAF page is no longer on South Dakota Housing’s website, and we could not find an official notice with its last application date. What is certain is the federal side: the Treasury HAF page shows the program’s period of performance ended September 30, 2026, so no state can approve new HAF payments. If you had a claim in process, call South Dakota Housing’s main office in Pierre to ask about it. Ignore anyone who says they can still get you HAF money.

South Dakota mortgage relief program options today

With the grant gone, relief comes from a mix of people who can negotiate for you, court rules that slow a foreclosure down, and tax programs that trim your yearly bill. Use this table to decide who to call first.

If the mortgage is only part of the strain, our South Dakota hardship program guide lists heating help, emergency aid, and other one-time support that can free up cash for the house payment.

Free counseling agencies in the state

A HUD-approved counselor can read your loan papers, build a budget the servicer will accept, and send a complete workout package for you. South Dakota Housing keeps a list of approved agencies. Three of them say they offer mortgage delinquency and default counseling:

• Consumer Credit Counseling Service of the Black Hills, Rapid City: 605-348-4550 ext. 144 or 1-800-568-6615.
• Lutheran Social Services Center for Financial Resources, Sioux Falls: 605-330-2700 or 1-888-258-2227.
• NeighborWorks Dakota Home Resources, Deadwood: 605-578-1401.

Other agencies on the list, such as GROW SD in Sisseton and the Sioux Empire Housing Partnership, focus more on budgeting and buying a home, but they can point you to the right place. Counseling is free, and many sessions can happen by phone, which helps if you live far from Rapid City or Sioux Falls.

Getting a workout from your servicer

The company you send payments to is the one that can actually change your loan. Federal rules in 12 CFR 1024.41 give you some breathing room while it looks at your request:

• A servicer generally cannot make the first foreclosure filing or publish the first notice until you are more than 120 days behind.
• If you send a complete application before that point, it must decide and finish any appeal before it starts.
• If the foreclosure has already begun, a complete application received more than 37 days before the sale still has to be reviewed before the sale goes ahead.
• You get a written answer that lists each option it considered.

The menu usually includes a repayment plan, a forbearance, a loan modification, a payment deferral that moves missed payments to the end of the loan, a short sale, or a deed in lieu. Keep a log of every call, and send documents in a way you can prove, such as the servicer’s upload portal with a saved confirmation.

VA, FHA, and USDA home loans

Many South Dakota homes are financed through government-backed loans, and each has its own rules.

VA loans. Veterans near Ellsworth Air Force Base and across the state should know about the new VA partial claim. VA pays the past-due amount and you repay it later, when you sell or pay off the house. You first have to make three monthly payments on a trial plan, and servicers have until November 28, 2026, to start offering it. The VA’s page for borrowers having trouble also covers repayment plans, special forbearance, and modifications. VA loan technicians are at 877-827-3702.

FHA loans. Your servicer must review you for HUD’s loss mitigation options, which can include an FHA partial claim, an interest-free second lien that is due when the loan ends. HUD changed these options in 2025, so ask what is available now rather than relying on older advice.

USDA loans. If Rural Development made the loan directly to you, call it about payment help. If a bank made a USDA-guaranteed loan, that bank is the servicer and offers the options USDA allows.

Veterans can find more in our guide to foreclosure assistance for veterans.

Two roads to foreclosure in South Dakota

South Dakota lets lenders choose between a court case and a sale by published notice. Knowing which one you face tells you what deadlines matter.

Foreclosure by action

The lender files a lawsuit in the circuit court for the county where the home sits (SDCL 21-47-1). You have 30 days after you are served with the complaint to file an answer (SDCL 15-6-12(a)). If you do nothing, the lender can ask for a default judgment. If it wins, the court orders a sheriff’s sale.

Foreclosure by advertisement

If the mortgage contains a power of sale, the lender can skip the lawsuit and sell under SDCL chapter 21-48:

1. Published notice. The notice runs once a week for four weeks in a legal newspaper in your county. It must list the amount claimed, the default, the time and place of sale, and a statement that you can ask for foreclosure by action (SDCL 21-48-6).
2. Written notice to you. At least 21 days before the sale, the lender must serve a copy of the notice on you and on other lienholders (SDCL 21-48-6.1).
3. Your right to move it to court. You can apply to the circuit court to require foreclosure by action. You do not need to give a reason, and the judge must stop the advertisement sale (SDCL 21-48-9).
4. Auction. The sale is a public auction between 9 a.m. and 5 p.m. in the county where the property is (SDCL 21-48-10).

Moving the case to court gives you a judge, a written record, and the chance to raise defenses, which is one reason legal aid lawyers often look at this option first.

Redemption after the sheriff’s sale

South Dakota gives owners a long second chance after the auction compared with most states. You can redeem by paying what the buyer bid plus the costs the law allows.

Look at the top of your mortgage. A short-redemption mortgage must say “MORTGAGE--ONE HUNDRED EIGHTY DAY REDEMPTION” in capital letters, and it cannot take away your right to stay in the home during the redemption period (SDCL 21-49-12). Some lenders use this form, so check before you count on a full year.

Redemption time is useful even if you cannot pay the full amount. It gives you room to sell the house yourself and keep any equity, or to keep negotiating a workout with the buyer or lender.

When a lender can chase a shortfall

If the sale brings less than you owe, the gap is called a deficiency. South Dakota makes it harder to collect. When a mortgage is foreclosed by action, the sale fully satisfies the debt unless the lender proved the property’s fair value at trial and the court allowed a lower bid (SDCL 21-47-16 and 21-47-17). Even then, the lender must go back to the court to collect. A similar proof-of-value rule applies when the lender buys at an advertisement sale (SDCL 21-48-14). A lawyer can tell you whether these rules protect you.

Property tax relief from the Department of Revenue

Property tax is often a big part of a monthly escrow payment. The Department of Revenue’s July 2026 summary lists these programs for homeowners.

Assessment Freeze for the Elderly and Disabled

This program (SDCL 10-6A) stops your home’s taxable value from going up. In its March 2026 notice, the department set these rules for the 2026 filing year:

• Age 65 or older, or disabled under the Social Security definition.
• 2025 income under $56,595 for one person, or under $66,885 for a household of two or more.
• Home worth no more than $514,500 in full and true value.
• An owner and South Dakota resident for five years, unless you had the freeze last year, and living in the home at least 200 days of the prior year.

Apply with your county treasurer by April 1 each year. A surviving spouse may still qualify. The limits change every year, so check the new numbers before you apply in 2027.

Other reductions and exemptions

• Municipal Property Tax Reduction for the Elderly and Disabled (SDCL 10-6B): lowers city taxes, but only in Rapid City, through the Pennington County Treasurer. Income limits apply.
• Property Tax Reduction Program for Paraplegics (SDCL 10-4-24.11): a reduction on a sliding income scale, due April 1.
• Homestead exemption for owners 70 or older: lets you put off paying property taxes until the home is sold, with interest.
• Disabled Veteran Exemption (SDCL 10-4-40): the first $200,000 of value is exempt for a veteran rated permanently and totally disabled from a service-connected cause, due November 1.

Lawmakers also passed broader relief. SB 216 (2025) caps yearly growth in owner-occupied values and local budgets at 3% for five years, starting with taxes paid in 2027. SB 245 (2026) uses sales tax money to lower the school levy on 2027 bills. Questions go to the department at 1-800-829-9188, option 2.

Legal aid from East River and Dakota Plains

South Dakota’s legal aid groups share one online application at SD Law Help. It sends your request to the right office, which says it will contact you within two to five business days. If you have a court deadline sooner than that, call an office directly. The Unified Judicial System’s legal help page lists:

• East River Legal Services, Sioux Falls, for low-income residents of eastern South Dakota: 605-336-9230 or toll-free 800-952-3015.
• Dakota Plains Legal Services, main office in Mission: 605-856-4444. It has eight offices across South Dakota and North Dakota, serves nine tribal nations, and runs the Justice Bus mobile legal office.
• Access to Justice, Pierre: 855-287-3510, which links people with volunteer lawyers.

Bring the mortgage, the note, every notice you received, and the newspaper notice if there was one. A lawyer can check whether the lender followed chapter 21-48, whether you should ask to move the case into court, and which redemption period applies to you.

Rescue offers to turn down

Published sale notices are public, and they can bring calls and letters from people who want to profit from a hard time. Walk away from anyone who:

• Charges a fee before doing anything to save your home.
• Says they can still file for SD HAF or another “government grant” for you.
• Wants you to sign the deed over and rent the house back.
• Offers to buy your redemption rights for a small amount of cash.
• Tells you not to talk to your servicer, counselor, or lawyer.

The CFPB’s foreclosure scam guide lists more warning signs. Free help is available from counselors and legal aid. If credit cards or medical bills are also piling up, read our South Dakota debt relief programs guide.

Related guides

• South Dakota rent relief
• Government assistance for homeowners
• Mortgage relief programs
• Foreclosure assistance grants for seniors

Frequently asked questions

This guide is general information, not legal advice. Statutes, tax limits, and program details can change, so confirm them with the Department of Revenue, your servicer, the circuit court, or a lawyer. National Relief Program is an independent website and is not affiliated with South Dakota Housing, the South Dakota Department of Revenue, the state courts, or any government agency.