Montana Foreclosure Law

In Montana foreclosure law Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Montana state foreclosure timeline ranges up to 150 days. Montana foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Montana foreclosure law does not authorize the statutory right of redemption. However deficiency judgments are allowed by Montana Foreclosure law but it varies.

By means of non-judicial or judicial foreclosure processes lenders in the state of Montana may foreclose on deeds of trusts or mortgages in default.

Judicial Foreclosure
Judicial foreclosure authorizes lender to file a lawsuit to get the court orders to foreclose on particular property.
Judicial foreclosure process is by and large used when a “no power of sale” is there in the mortgage or deed of trust. A power of sale clause authorizes the sale or transfer of property as outlined by the terms of that clause in a deed of trust or mortgage.
While using judicial foreclosure, the foreclosure process is performed in accordance to the term and conditions of that clause.

Non-judicial foreclosure
In case homeowner defaults non-judicial foreclosure process allows the lender to sell the property in direction to pay off the balance of the loan. Non-judicial foreclosure method is favored when “power of sale clause” exists in the deed of trust or mortgage document. A “power of sale clause” in a deed of trust or mortgage means that in case of default borrower has pre-authorized the sale of property to pay off the balance on a loan. The power to sell may be concluded by the lender or their representative in conditions where a power of sale exists. The modus operandi for this Non-Judicial Foreclosure is elucidated in the “Power of Sale Foreclosure Procedure” listed below:

Power of Sale Foreclosure Procedure
If the power of sale clause states the time, place, and terms of sale then the procedure must be followed according to the specifications. And in case Power of sale clause has no specification regarding time, place and terms of sale than it will be carried out in following way:
•    The notice issued to foreclose must be published in newspaper having general circulation in the county in which the property is located every week for three (3) consecutive weeks. Copies of the notice must be mailed through certified mail to the borrower at his last known address. Notice must be published at least 120 days before the sale.
•    It is also required to post the notice on the property not under twenty-one (21) days past to the day of sale.
•    Notice of sale must contain the sources of books and pages where the deed is recorded, names of borrower, lender and trustee.
•    Time, date, and place of sale must also be mentioned in the said notice; more than description of property and default are also required to be mentioned in the notice of sale.
•    It is required to sell the property at auction in the courthouse where the property is sited; trustee may carry out sale between the hours 9:00 am to 4:00 pm at the courthouse. Upper most will qualify the sale.
•    In case of postponement, it is necessary to conduct it again in next 15 days by posting another notice at the time and place where original sale was scheduled.
•    Borrower has no right of redemption, however lender may seek deficiency judgment unless by filling lawsuit and where the due payment were not enough to the judgment.