Missouri Foreclosure Sale Laws
Missouri subscribes to the title theory of property ownership. This states that the lending agent retains ownership of the property until the mortgage contract has been fully satisfied. This theory influences the foreclosure laws in the state. The foreclosure process in Missouri generally takes 60 to 90 days to complete, if the borrower does not fight the proceedings.
Other People Are Reading
-
Court Order
-
Missouri recognizes two ways for a lender to foreclose on a piece of property. The first, referred to as a judicial foreclosure, requires the lending agent to file a lawsuit for payment of the delinquent amounts. The court will typically establish a deadline for these payments to be made. Once this date passes, if no payment has been made, then the court will order the home be sold to the highest bidder.
Nonjudicial Foreclosure
-
The nonjudicial process gives the lending agent the ability to foreclose on the property without the need to obtain a court order. This is accomplished through a power-of-sale clause, which is written into the contract. Through this clause, the borrower agrees to give the lender the right to foreclose on the house, once the loan has defaulted.
-
Power-of-Sale Procedures
-
The power-of-sale clause usually includes any requirements necessary to complete the foreclosure process. In the event that these details are missing, then Missouri's statutes are in effect. The lending agent is required to mail a notice of sale to the borrower at least 20 days before the auction is scheduled to occur. The lender must also place this notice in a local newspaper prior to the sale.
One Final Opportunity
-
The state of Missouri gives the borrower one last chance to reclaim his property after the auction is completed. This can be done by paying the entire balance of the mortgage loan, plus an additional costs incurred by the foreclosure process. The borrower has one year from the date of sale to exercise this right of redemption.
-
