FAQ About Foreclosure Law in Missouri
In the foreclosure process, a mortgage lender seeks to reclaim a property from a borrower who neglects to make monthly payments on his mortgage. In the United States, foreclosure law varies depending upon the state in which the property is located. According to Rachel Lynn Foley of the Bankruptcy Law Network, the state of Missouri is a nonjudicial foreclosure state, meaning that a lender may foreclose on a mortgaged property without a court order.
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Considerations
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When a Missouri bank initiates foreclosure proceedings, the institution doesn't need to obtain a court order to sell the property, as the Deed of Trust outlines the right of the trustee, or borrower, of the property to reclaim the property in the event of nonpayment of the home note. This means that the borrower has less time to stall the bank in the foreclosure process.
Warning
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If a borrower doesn't send in a mortgage payment 30 days past the due date, the lender sends a letter that tells the borrower to become current with his Missouri home note, according to RealtyTrac. The lender may assess additional penalties for the late payment. This letter also includes a list of the actions that the lender will take if the borrower doesn't make good on his debt, which includes foreclosure.
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Time Frame
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If a Missouri borrower doesn't make good on her obligations within 60 days, the bank initiates foreclosure proceedings. According to RealtyTrac, the lender places a notice in the newspaper for four weeks, which lists a description of the property and when it will be sold at auction.
Options
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According to the Bankruptcy Law Network, the borrower has three options that can be taken to stop foreclosure in Missouri. The first is to sell the property before the bank initiates final foreclosure proceedings. The debtor may also file for Chapter 13 bankruptcy, which gives him 60 months to regain financial control of the property. The last way to stop foreclosure in Missouri is to pay the debt off completely or to bring the account current by negotiating with the mortgage lender.
Redemption
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According to RealtyTrac, certain states allow a delinquent borrower to buy back the property after the bank forecloses upon it. In the state of Missouri, a borrower can only redeem the property if she buys it at auction or puts up a bond and gives a written notice to the bank that she intends to buy the property outright 10 days before the sale. Once the local city or county auctions off the property at auction, the foreclosed-upon borrower has no right to reclaim it.
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