Mississippi Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: No
Deficiency Judgments Allowed: No
Time Frame: Typically 60
Public Notice: Publication
Mississippi is a title theory state, which means that a property title will remain in trust until the loan is paid in full. A title for a property in Mississippi can be secured by either a mortgage or a deed of trust, both of which serve the same purpose.
If a borrower defaults, lenders can procure a foreclosure. Two types of foreclosures are allowed In Mississippi: judicial and non-judicial foreclosures.
The state does not have a right of redemption period in which a borrower can reclaim their property if they pay off their loan (plus additional costs) in full, nor does the state allow for deficiency judgments, in which lenders may sue borrowers for the remaining balance if a property sells for less than what was owed on it.
Types of Foreclosures Allowed in Mississippi
Judicial foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The lender must file a lawsuit along with a Lis Pendens (public foreclosure notice) to initiate the foreclosure process. The court will issue the final judgment on the property. If the court chooses to foreclose, the property will be sold at auction by a sheriff in the county where the property is located.
Non-judicial foreclosure, also known as foreclosure by power of sale, is carried out when the loan documents contains a power of sale clause. The purpose of the clause is to authorize the lender to sell the property in the event of default to be able to recover what is owed on the property.
The difference between non-judicial foreclosures and judicial foreclosures is that non-judicial foreclosures allow for the property to be sold without court supervision. This type of foreclosure process is usually much faster and less expensive than a judicial foreclosure.
There are two ways in which a non-judicial foreclosure in Mississippi can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following requirements must be met:
1. Before the foreclosure can be initiated, the attorney conducting the sale must obtain and file a notice of sale to indicate that the foreclosure is pending. The lender must then publish a notice of foreclosure every week for three (3) consecutive weeks in a newspaper that circulates in the county where the property is located. In addition, a copy of the notice must be posted at the courthouse door in the county where the property is located.
2. The notice must contain information about the property, including the borrower’s name, when and where the sale will take place, and other relevant information.
3. Prior to the sale, the borrower may pay off their loan and stop foreclosure on their home.
4. If the borrower does not pay off their loan, the property will be sold at auction to the highest bidder by a sheriff in the county where the property is located. Sales must occur between 11 a.m. and 4 p.m.
5. Sales may be postponed by the sheriff every day.
Seeking Help from Mississippi Foreclosure Attorneys
Due to the current conditions with the U.S. economy, many mortgagors are losing their jobs, experiencing pay cuts or are having general financial difficulties. This, in turn, has led many homeowners to fall behind on their mortgage payments. Although a borrower may be served with a foreclosure notice, they can still fight for their home. Turn to a leading foreclosure lawyer in Mississippi for help in preventing your property from being repossessed.
Foreclosure attorneys do whatever it takes to make sure you don’t lost your home. They will speak to lenders and come up with an alternative plan to property seizure that everyone can be satisfied with. Your foreclosure lawyer may suggest mortgage modification, refinancing or even a temporary halt in payments. Regardless of the plan, rest assured that your foreclosure attorney will ensure your case ends with the best possible outcome.
Regardless of your reason for defaulting on your mortgage, as a homeowner in Mississippi, you have rights. Speak to a skilled team of foreclosure lawyers in Mississippi today to prevent your home from being repossessed.