Timeline:
60 days
Redemption:
Possibly one year after sale
Deficiency
Judgments: No
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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In Missouri
, the lender may pursue either a Judicial or Non-Judicial Foreclosure
process. The Judicial Foreclosure process is used when the loan
documents do not contain a “power of sale” clause. The lender
must sue the borrower in court to obtain an order to foreclose.
If the
loan documents contain a “power of sale” clause, the lender
can use the Non-Judicial Foreclosure process. This clause authorizes
the lender to sell the property in the event the borrower defaults.
If the clause specifies the time, place, and terms of the sale,
then those procedures must be adhered to. |
The
sales process in Missouri requires the lender to mail to the
last known address of the borrower a copy of the notice of sale
at least twenty (20) days before the scheduled sale date. The
notice must also be published in a local newspaper of general
circulation for four (4) consecutive weeks. It must be once
a week on the same day per week as the last publication.
The
lender's trustee or representative conducts the sale as a public
auction. Anyone may bid on the property, including the lender.
If the
lender is the high bidder at auction, the borrower has a one
year right to redeem the property. If anyone else is the high
bidder, the borrower has no redemption period in Missouri .
The
lender does not have the right to sue the borrower for a deficiency
judgment.
Missouri Foreclosure Law