What Is the Foreclosure Law in Missouri?
Missouri foreclosure laws set the standards by which a mortgage holder can take possession of a Missouri home in the event of a loan default. Understanding how a foreclosure works can help make a stressful situation more manageable. Review the laws along with your mortgage to understand what your rights are and what your expectations should be.
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Non-Judicial Foreclosure
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Non-judicial foreclosures transpire without going to court. The mortgage note includes a stipulation that allows the lender to take possession of the property in the event the mortgage holder falls behind on payments. While the specific terms of each contract may vary, you can expect the process to take 60 to 90 days from the date of notice for an uncontested foreclosure to be finalized. The note will also define notices you can expect to receive prior to being forced to move out of your home.
Judicial Foreclosure
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If the mortgage note does spell out the foreclosure terms, a lender may choose to take the mortgage holder to court. A case will be presented to justify the repossession of the home, and you will have an opportunity to defend your actions. Not only will you receive a summons from the court, the lender is obligated to provide a paper trail to the mortgage holder. The state of Missouri takes special caution to ensure no one loses a home without due notice.
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Paper Trail
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Before the lender can sell your property at a public auction under foreclosure law, it must publish a notice of foreclosure sale at least 20 times if the property is in a city with a population of 50,000 or more. In less populated areas, the notice must be published at least four successive weeks prior to the date of sale. Typically the notice is published in a local newspaper. Additionally, within 20 days from the date of sale, the lender must provide the mortgage holder with a personal notice by registered or certified mail. The notice will include the terms of sale as well as the date, location and time of sale.
Right of Redemption
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Owners are not without hope if their property goes into foreclosure. In the case of a judicial foreclosure, the owner has a one year right of redemption. This means the mortgage holder can provide a written notice to the court within 20 days of the date of sale stating the intention to pay the debt in order to get the home back. The notice is posted with a bond that covers all costs and fees due except for the principal and interest. This will prevent the sale of the home for the course of one year.
Auction
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The property is usually sold to the highest bidder at a public auction on a local courthouse steps. The mortgage holder can bid on the property. Anyone other than the mortgage holder who wins a bid is expected to pay cash for the property. The mortgage holder can exercise the right of redemption at that point and has a year to pay.
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