Missouri Foreclosure Law

Missouri foreclosures law acknowledges both judicial and non-judicial foreclosure. In Missouri State timeline of process period varies, however it usually takes 60 days. Missouri foreclosure law accepts the deed of trust and mortgage as primary security instruments. Missouri foreclosure law permits right of redemption but only in specific situations. Deficiency Judgments are also not allowed in Missouri foreclosure law.

Regardless, which foreclosure procedure is adopted either judicial or non-judicial, lender in Missouri State may foreclose on deeds of trusts or mortgages in case default occurs.

Judicial Foreclosure
The judicial foreclosure process allows the lender to file a lawsuit to obtain a court order to foreclose The Judicial foreclosure process is generally used when “no power of sale clause” is there in the mortgage or deed of trust. A “power of sale clause” in a deed of trust or mortgage empowers lender to sale or transfer of land as summarized by the terms of that clause.

Non-Judicial Foreclosure
Non-Judicial Foreclosure allows the lender to sell the property and set the balance of the loan in case the borrower defaults. Non-judicial process of foreclosure is used when deed of trust or mortgage document contains “a power of sale clause”. The power to sell given to the lender may be carried out by the lender or their representative, typically referred to as the trustee. “Power of Sale Foreclosure Procedure” explained below will elucidate the genuine method for Non-Judicial foreclosure process.

Power of Sale Foreclosure Procedure
If the mortgage or deed of trust comprises of the “power of sale clause”, which have details regarding the time, place and the terms of sale in that case the specified course of actions must be followed. If power of sale clause does not state the specifications of time, place and terms of sale then non-judicial foreclosure would be followed as bellow:

•    At least (20) days before the scheduled sale, notice of sale must be furnished to the borrower at his last given address.
•    Notice of sale must be published in a newspaper of general circulation in the country where property is situated.
•    Trustee has the responsibility to conduct sale at auction, where property will be sell to the highest bidder.
•    Any one can bid at auction and lender may avail the opportunity of auction .In case lender qualify the sale, borrower may redeem the property within one year.