Summary of Missouri State Foreclosure Law
by Alexander ThomasMissouri allows Judicial as well as Non-judicial foreclosure.
Missouri offers a right of redemption. Generally borrower gets one year of redemption period. However, redemption procedure is little complicated in Missouri. First, the borrower must give advance notice of their intention to the lender, during the sale or 10 days before the sale. Next, the borrower must give bond within 20 days after the sale, which provides an amount equal to the following:
The mortgage interest, any secondary loan interest, and taxes that will accrue for one year after the sale; foreclosure expenses; legal fees; damages; plus 6 percent interest. If the owner is able to fulfill all the conditions then only he can redeem the property.
Are deficiency judgments permitted in Missouri?
Deficiency judgments are not permitted in Missouri.
Which law provision governs foreclosure in Missouri?
It is found in Chapter 443.327 Missouri Revised Statutes.
What happens during Judicial Foreclosure in Missouri?
It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. Once foreclosure is declared, property is auctioned off to highest bidder.
What happens during Non-Judicial Foreclosure in Missouri?
Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under Guidelines for power of sale foreclosure.
Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.
Otherwise foreclosure takes place as follows:
A notice of sale must be mailed to the borrower minimum 20 days before the sale at his last known address. It should be published daily in local newspaper (where property is located) of city in that county with population of more than 50000. This ad should start at 20 days before the sale and to be continued till the day of the sale. In other counties, it should be published once a week for four weeks and last ad should appear a week before the sale. This sale is generally conducted by trustee. It happens between 9 a.m. to 5 p.m. on a specified date. The borrower owns right to stop foreclosure at any point of time by making payment.
This is legal information; it should not be treated as legal advice.
To get more information:
http://www.entrusthome.com/32-stop-foreclosure-missouri.php
Article submitted Tuesday, November 06, 2007 & read 32 times.
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