Missouri Foreclosure Law Summary

Missouri Foreclosure Laws Subject To Change

The Missouri foreclosure summary below provides information on your state’s most common foreclosure rules. However, you should also know that your state’s foreclosure laws and procedures are subject to legislative, judicial, and local rule changes.

The information below is intended to provide you with a beginning point for understanding the intricacies and complexity of your state’s foreclosure law.

You will also need to consult with a local foreclosure defense lawyer to obtain a complete and current understanding of your state’s foreclosure laws and how they may apply to your specific legal and financial situation.

Quick Facts

– Judicial Foreclosure Available: Yes

– Non-Judicial Foreclosure Available: Yes

– Primary Security Instruments: Deed of Trust, Mortgage

– Timeline: Typically 60 days

– Right of Redemption: Yes

– Deficiency Judgments Allowed: No

In Missouri, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage in which the borrower pre-authorizes the sale of the property to pay off the balance on loan in the event of their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines.”

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place, and terms of sale, then the specified procedure must be followed. Otherwise, the foreclosure may proceed as follows:

1. A notice of sale must be mailed to the borrower at his last known address at least twenty (20) days prior to the scheduled day of sale. The notice of sale must also be published in a newspaper within the county.
2. The sale is conducted by the trustee at a public auction for cash to the highest bidder. Anyone may bid, including the lender. If the lender is the winning bidder, the borrower has one year (12 months) to redeem the property.

Need Foreclosure Help? Get Answers Now!

Communicate With A Verified Real Estate And Foreclosure Lawyer.

Reference Source: U. S. Foreclosure