Montana Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 150 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Varies
Lenders in the state of Montana 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 Guidelines
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:
- The Notice of Sale is recorded in the county where the property is located.
- The notice is mailed, by registered or certified mail, to the borrower’s last known address at least one hundred and twenty (120) days prior to the sale.
- The notice is also published once a week for three (3) successive weeks in a newspaper in the county where the property is located, and posted on the property itself at least twenty (20) days prior to the foreclosure sale.
The sale is conducted by the trustee at the county courthouse where the property is located. The property is sold at public auction to the highest bidder. If necessary, the sale can be postponed for up to fifteen (15) days by posting a notice at the time and place where the sale was originally scheduled.
The borrower has no right of redemption. Under Montana law, the lender can not pursue a deficiency judgment unless the foreclosure was done by filing a lawsuit and the sale proceeds were insufficient to pay the judgment.
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.
Search for Montana Foreclosed Homes