Missouri
Foreclosure Law
-
Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust,
Mortgage
- Timeline: Typically 60 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: No
In Missouri,
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
foreclosure may proceed as follows:
- A notice of sale must
be mailed the borrower, at his last known address, at
least twenty (20) days prior to the scheduled day of
sale. The notice of sale must also be published in a
newspaper within the county.
- The sale is conducted
by the trustee at public auction for cash to the highest
bidder. Anyone may bid, including the lender. If the
lender is the winning bidder, the borrower has one year
(12 months) to redeem the property.
|
|
|
