Foreclosure Guidelines in Missouri

Highlights:

Judicial/ Non-Judicial Foreclosure: Available/ Available

Right of Redemption / Deficiency Judgment: Yes / 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 Missouri.

Judicial/ Foreclosure process:   

The Judicial foreclosure process can be carried on when there is no power of sale clause in the deed of trust/ mortgage documents. In this process, the lender needs to file a lawsuit in the court after the borrower defaults on their mortgage payment. If the court finds that the borrower has defaulted on the mortgage payments, it will pronounce an order authorizing the foreclosure of the mortgage property. The foreclosure process involves a public auction where the property is sold off to the highest bidder.

Non-Judicial Foreclosure process:
If a power of sale clause exists in a deed of sale / mortgage document, the Non-Judicial foreclosure process is followed. The power of sale clause authorizes the lender to conduct the foreclosure process if the borrower happens to default on the mortgage loan. In the Non-Judicial foreclosure process, either the lender or their authorized representative (called as Trustees) can conduct the foreclosure proceedings according to the following terms.

If the power of sale document contains the terms of the foreclosure sale including the time/location and other conditions, the same is followed. If not, the following procedures are followed.

A notice of sale should be published in a newspaper located in the county and it should also be sent to the borrower and any other person mentioned in the mortgage document at least twenty days before the scheduled auction / sale.

During the foreclosure process, the property is sold off via a public auction and the highest bidder gets the ownership of the property. The borrower has a right of redemption for up to 12 months from the date of sale, during which they can pay up all dues and claim their property back.

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