Montana 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: Varies
Time Frame: 150 Days
Public Notice: Notice
Montana 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.
Lenders in Montana may choose to foreclose on a property through either judicial or non-judicial foreclosure proceedings. However, the state’s primary method of foreclosure is non-judicial foreclosure. The state does not have any right of redemption policies nor does it allow for deficiency judgments.
Types of Foreclosures Allowed in Montana
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 initiates the foreclosure by petitioning the court in the county where the property is located. The court will then decide the amount that is owed on the property and will give the borrower a period of time to satisfy their debt. If the borrower is unable to pay off the outstanding debt, the court issues a notice of sale.
Non-judicial foreclosure, also known as foreclosure by power of sale, involves selling a property without court supervision. In order for non-judicial foreclosures in Montana 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. Non-judicial foreclosures are usually much faster and less expensive than other foreclosure methods.
In Montana, non-judicial foreclosures can proceed in two ways. If the power of sale clause outlines the terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following must occur:
1. A notice of sale must be recorded in the county where the property is located and it must be mailed via registered or certified mail to the borrower at least one hundred and twenty (120) days before the sale is to take place. The notice must also be published weekly 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 on the property at least twenty (20) days before the sale.
2. The notice must contain information about the property and sale, such as date, time and place of the sale, the borrower and lender’s names, a description of the property, and other valuable details.
3. The sale will be conducted by the trustee between 9 a.m. and 4 p.m. at the courthouse in the county where the property is located. The property will be sold at auction to the highest bidder.
4. The foreclosure sale may be postponed up to fifteen (15) days by posting a notice at the original sale location.
Working with a Foreclosure Lawyer in Montana
The current economic situation in the U.S. is grim. Many people are losing their jobs or are experiencing huge pay cuts and are accumulating debt by the minute. Homeowners that were previously able to pay their mortgages on time and without any trouble are now finding it difficult to keep up with their payments. While it may seem like a dire situation, help is available right now to all homeowners in Montana. If you have fallen behind on your mortgage payments or have received a notice of foreclosure in Montana, contact a foreclosure attorney right away to fight for your rights.
Foreclosure lawyers work hard to prevent your home from being repossessed. They will speak to your lender and devise a plan in lieu of foreclosure that everyone can work with. Your foreclosure lawyer may suggest mortgage modification, refinancing or even a temporary halt in payments. Whatever the idea, rest assured that your paralegal will find a solution to your financial burdens.
Regardless of why you are in debt, you have rights as a homeowner in Montana. Turn to a leading team of foreclosure attorneys in Montana today to discuss your options and file a case.