Missouri Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: 12 Months
Deficiency Judgments Allowed: No
Time Frame: Typically 60 Days
Public Notice: Publication
Missouri is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by either a mortgage or a deed of trust. The mortgage and deed of trust serve the same purpose and generally have the same terms.
The state permits two types of foreclosures: judicial and non-judicial foreclosure. However, the state’s primary method of foreclosure is non-judicial foreclosure.
Borrowers in Missouri have a twelve (12) month redemption period, meaning that after a property is sold at auction, borrowers have twelve (12) months to reclaim the property. Missouri does not permit deficiency judgments. If a property sells at auction for less than what was owed on it, lenders in the state do not have a right to sue the borrower for the remaining sum.
Types of Foreclosures Allowed in Missouri
Missouri statute allows for judicial foreclosures on defaulted property. This type of 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 against the borrower to begin the process of foreclosure. Once the lender obtains a court order to foreclose, the property will be auctioned off to the highest bidder.
In Missouri, non-judicial foreclosures, also known as foreclosure by power of sale, are also permitted. In order for non-judicial foreclosures in Missouri to be possible, the loan documents must contain 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 Missouri 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 guidelines must be followed:
1. A notice of foreclosure sale must be mailed to the borrower at least twenty (20) days before the sale. The notice must also be published in a newspaper that circulates in the county where the property is located weekly for four (4) weeks and no earlier than a week from the date of the sale.
2. Sales must take place between 9 a.m. and 5 p.m. and must be conducted by the trustee. The highest bidder will claim the property. The lender may bid at the auction. If the lender wins, the borrower has twelve (12) months to reclaim the property.
Hiring a Foreclosure Attorney in Missouri
Receiving a foreclosure notice can be one of the most frightening and difficult things to deal with. The idea of losing your home can be devastating, but there is good news. A foreclosure notice doesn’t automatically mean you will have your property repossessed. You can fight for your rights as a homeowner to prevent foreclosure. If you are behind on your mortgage or have already received a notice of foreclosure, speak to an acclaimed team of foreclosure attorneys in Missouri for help right away.
Your foreclosure lawyer will review your current financial situation and will devise a plan of action to present to your lender in lieu of foreclosure. . Your foreclosure attorney might suggest mortgage modification, refinancing or even a temporary halt in payments in hopes that your lender will agree to the proposition. Since the process of foreclosing a property costs lenders money, if an adequate plan is proposed, your lender will most likely agree to it.
Regardless of why you are behind on your mortgage payments, the important thing to remember is that you have rights as a homeowner in Missouri. Don’t waste any time before contacting a top team of foreclosure lawyers in Missouri to prevent your home from being repossessed.