Mississippi
Foreclosure Law Summary
- Judicial
Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: No
In Mississippi,
lenders may foreclose on deeds of trusts or mortgages in
default using either a judicial or non-judicial foreclosure
process.
Judicial
Foreclosure
The judicial
process of foreclosure, which involves filing a lawsuit to
obtain a court order to foreclose, is used when no power of
sale is present in the mortgage or deed of trust. Generally,
after the court declares a foreclosure, your home will be
auctioned off to the highest bidder.
Non-Judicial
Foreclosure
The
non-judicial process of foreclosure is used when a power of
sale clause exists in a mortgage or deed of trust. A "power
of sale" clause is the clause in a deed of trust or
mortgage, in which the borrower pre-authorizes the sale of
property to pay off the balance on a loan in the event of
the their default. In deeds of trust or mortgages where a
power of sale exists, the power given to the lender to sell
the property may be executed by the lender or their
representative, typically referred to as the trustee.
Regulations for this type of foreclosure process are
outlined below in the "Power of Sale Foreclosure
Guidelines".
Power of
Sale Foreclosure Guidelines
If the deed of
trust or mortgage contains a power of sale clause and
specifies the time, place and terms of sale, then the
specified procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is carried out as
follows:
- The trustee must record
a notice of sale containing, at minimum, the borrowers
name and the date, time and place of the sale in the
county where the property is located. This notice must
also be posted at the courthouse door in the county
where the property is located and published in a
newspaper of general circulation in said county for a
period of three (3) consecutive weeks before the
schedule date of the sale.
- The borrower may cure
the default and stop the foreclosure process at any time
before the foreclosure sale by paying the delinquent
payments, plus costs and fees.
- The sale must be made
at public auction for cash to the highest bidder. The
sale may be held in the county where the property is
located, or, if different, in the county where the
borrower resides. In either case, the sale must be
conducted at the normal location for sheriff's sales
within the given county. Borrowers who lose their
property as the result of a non-judicial foreclosure
have no rights of redemption in Mississippi.
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