Judicial/ Non-Judicial Foreclosure: Available/ Available
Right of Redemption / Deficiency Judgment: No / No
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Both Judicial and Non-Judicial foreclosure processes can be followed in Mississippi.
Judicial/ Foreclosure process:
If the power of sale clause is not present in the deed of trust/ mortgage document, the Judicial Foreclosure process can be followed. In this process, the lender files a lawsuit in case the borrower defaults on the mortgage loan. The court verifies if the borrower has defaulted on the loan and then issues a court order to carry on with the foreclosure proceedings where the mortgage property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure process:
If power of sale clause is present in the deed of trust/ mortgage document, the Non-Judicial foreclosure process is followed. The power of sale clause authorizes the lender to foreclose on the mortgage property in case the borrower happens to default on the property. The foreclosure procedures can be carried on either by the lender or their authorized representative who are referred to as Trustees. The following guidelines can be followed in a Non-Judicial foreclosure process.
If the power of sale contains the procedure that needs to be followed during a foreclosure sale including the time/location and other terms of the foreclosure sale, the same needs to be followed. Otherwise, the following processes are applicable.
The lender needs to record a notice of sale in the recorder’s office located in the same county as the mortgaged property. This notice of sale should contain information about the lender/borrower names, phone numbers, correspondence address, property details, foreclosure sale time, date and venue.
This notice needs to be published in a local newspaper where the property is located for three consecutive weeks prior to the actual sale/auction date. This notice also needs to be pasted on the courthouse door.
The borrower has the option to stop the foreclosure sale by paying up all dues along with interests and other applicable fees anytime before the foreclosure sale is conducted. But they don’t have the right of redemption once the property is sold off to the highest bidder.
A public auction can be held either in the county where the property is located or in the county where borrower resides. In either case, it can be conducted by the sheriff at a neutral location where the sheriff normally conducts such a sale. The property is sold off to the highest bidder, who needs to pay in cash to complete the transfer of deed. The lender cannot file for deficiency judgment in Mississippi.