Missouri Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Varies by Process; Usually 60 days
- Right of Redemption1: Yes, in specific situations only
- Deficiency Judgments2 Allowed: No
Lenders in the state of Missouri may foreclose on a deed of trust or mortgage in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
If the deed of trust or mortgage has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause does not clarify the time, place and terms of sale, then a foreclosure sale is conducted as follows:
- A notice of sale is delivered to the borrower at least twenty (20) days prior to the scheduled day of sale. Notice is generally mailed to the last known address on record with the lender. The notice is also published in a newspaper within the county where the property is located.
- A trustee conducts the sale at public auction to the highest bidder for cash. The lender is allowed to bid. If the lender is the winning bidder, the borrower has one year to redeem the property. If anyone else buys the property, there is no right of redemption.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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