Missouri Foreclosure Information
Most foreclosures in Missouri are non-judicial and are conducted by a trustee on behalf of the lender of the defaulted loan. Unless a borrower contests the foreclosure or files for bankruptcy during the foreclosure process, Missouri foreclosures are completed in two to three months, according to Foreclosurelaw.org.
Other People Are Reading
-
Foreclosure Types and Time Frame
-
Both judicial and non-judicial foreclosures are allowed in Missouri. Judicial foreclosures require the lender to file a suit against the borrower; the foreclosure process goes through the court system. If your mortgage or deed of trust includes a "power of sale" clause, the lender pursues foreclosure through non-judicial means. Your current mortgage or deed of trust indicates which type of foreclosure is likely. Most deeds of trust in Missouri include the power of sale clause, meaning that the majority of foreclosures are non-judicial. An uncontested, non-judicial foreclosure usually takes 60 to 90 days.
Non-Judicial Foreclosure Requirements
-
Missouri non-judicial foreclosures have strict publication requirements. The trustee, who represents the lender in a non-judicial foreclosure, must adhere to these requirements for the sale to occur. If the home is in a city with at least 50,000 occupants, the foreclosure sale must be published a minimum of 20 times, including the day of the sale.
Notice of the sale must be published for four consecutive weeks, with the last publication date no more than one week prior to the sale, if the city has fewer than 50,000 people. In addition, the trustee must notify the borrower and any "interested parties" of the sale by registered or certified mail within 20 days of the sale. The notice includes the date and time of the sale, terms of the sale and a detailed description of the property.
-
Deficiency Judgment
-
Deficiency judgments result when the foreclosed loan sells for less than the outstanding loan balance. In Missouri, the lender cannot hold the borrower personally responsible for this amount. As a result, deficiency judgments are not allowed in Missouri.
Judicial Foreclosure
-
Most deeds of trust and mortgages in Missouri include the power of sale clause. In rare cases, a loan does not contain this clause and is a judicial foreclosure. In these instances, a lawsuit is filed in circuit court in the county where the property is located. The judge orders sale of the foreclosed property; anyone is allowed to bid on the property at the sale.
Redemption
-
Properties that sell through judicial foreclosure have a statutory redemption period in Missouri. The foreclosed borrower has one year from the date of the judicial foreclosure to reclaim the property. The borrower reclaims the property by paying the lender the full amount of the unpaid loan plus any costs the lender incurred in the foreclosure process.
Even though the borrower has one year to redeem the property, he only has 20 days from the date of the foreclosure sale to notify the lender of this intent. At the time the borrower files notice to redeem, he posts a bond for the outstanding fees and costs for everything except the principle and interest due.
-
References
- Photo Credit Justice image by MVit from Fotolia.com
