Foreclosure Laws in the State of Missouri
When homeowners take out a home loan and do not make payments on the note, the lender can seek to sell off the property through a process known as foreclosure. Sections 443.190 through 443.280 of the Missouri Revised Statutes contain the laws of the state of Missouri with regards to home foreclosure. State law permits both nonjudicial and judicial foreclosures. Nonjudicial foreclosures allow the lender to foreclose upon the home without a court order.
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Considerations
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According to Section 443.290 of the Missouri Revised Statutes, the state of Missouri does not require lenders to wait a certain number of days before pursuing a judgment against a homeowner for nonpayment of a mortgage debt. Most lenders add a power of sale clause that outlines the time frame for default and when the lender will foreclose upon the home. If the mortgage contract contains a power of sale clause, the lender does not have to file a suit in court to reclaim a property.
Judgment
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A Missouri lender will usually send a notice of default to the borrower, requesting him to make payments on his mortgage. If the borrower does not reach an agreement with the mortgage lender, the lender can file a petition to foreclose at the county courthouse in the county in which the property is located, according to Section 443.190 of the M.R.S. Upon inspection of the mortgage contract, the judge places a default judgment against the homeowner, which starts foreclosure proceedings, according to Section 443.230 of the M.R.S.
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Sale
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Once a Missouri lender receives a court order allowing foreclosure or when the lender forecloses through a nonjudicial process, he must give 20 days notice of the sale before auctioning off the property. This notice must be published in the county in which the property is located. According to Sections 443.310 and 443.320 of the M.R.S, lenders must publish notice in a daily newspaper in counties that contain a city of at least 50,000 people or in a semiweekly or weekly newspaper in less populated counties.
Redemption
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According to Section 443.400 M.R.S., the homeowner can redeem his property by paying the loan balance in full to the trustee of the foreclosure sale anytime before the day of the foreclosure auction. After the auction, the Missouri homeowner can redeem the property up to 365 days later if the original lender or someone representing the lender bought the property up at auction. In order to redeem the property, the homeowner must pay full restitution, including the original loan balance, interest and fees to the lender. If a third party purchases the property at auction, the foreclosed-upon homeowner has no rights to redeem the property, according to Sections 443.410 and 443.420 of the M.R.S.
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