Foreclosure Law Summary – State of Montana
by Alexander ThomasState of Montana conducts Judicial as well as Non-judicial foreclosures.Processing period is quite long around 150 days (approximately 5 months) in Montana and Sale publication period is 50 days.
judicial Foreclosure in Montana:
In this, the borrower is given some time to pay debt; if he fails to pay then the court will issue notice of sale. The property is auctioned off to highest bidder at sale.
Non-Judicial Foreclosure in Montana:
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:
First notice of sale must be recorded in county where property is situated, and then copy of notice should be sent to the borrower at least 120 days before the sale by certified mail. The notice should be published in local newspaper once a week for three consecutive weeks. It should be posted on property minimum 20 days before the sale. The notice should mention date/time/place of the sale, name of the lender, borrower and trustee, description of the property, details of default and the book and page where the deed is recorded. The sale is generally conducted by trustee between 9 a.m. to 4 p.m. at the courthouse of the county. The winning bidder can take possession of the property 10 days after the sale.
This is legal information; it should not be treated as legal advice.
For more information:
http://www.entrusthome.com/33-stop-foreclosure-montana.php
Article submitted Saturday, November 17, 2007 & read 41 times.
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