Missouri
Foreclosure Law
Summary
Quick
Facts
-
Judicial Foreclosure Available:
Yes
-
Non-Judicial Foreclosure
Available: Yes
- Primary
Security Instruments: Deed of
Trust, Mortgage
-
Timeline: Typically 60
days
- Right
of Redemption:
Yes
-
Deficiency Judgments Allowed:
No
In Missouri,
lenders may foreclose on deeds of
trusts or mortgages in default
using either a judicial or
non-judicial foreclosure
process.
Judicial
Foreclosure
The judicial
process of foreclosure, which
involves filing a lawsuit to
obtain a court order to
foreclose, is used when no power
of sale is present in the
mortgage or deed of trust.
Generally, after the court
declares a foreclosure, your home
will be auctioned off to the
highest bidder.
Non-Judicial
Foreclosure
The
non-judicial process of
foreclosure is used when a power
of sale clause exists in a
mortgage or deed of trust. A
"power of sale" clause is the
clause in a deed of trust or
mortgage, in which the borrower
pre-authorizes the sale of
property to pay off the balance
on a loan in the event of the
their default. In deeds of trust
or mortgages where a power of
sale exists, the power given to
the lender to sell the property
may be executed by the lender or
their representative, typically
referred to as the trustee.
Regulations for this type of
foreclosure process are outlined
below in the "Power of Sale
Foreclosure
Guidelines".
Power of Sale
Foreclosure
Guidelines
If the deed of
trust or mortgage contains a
power of sale clause and
specifies the time, place and
terms of sale, then the specified
procedure must be followed.
Otherwise, the foreclosure may
proceed as follows:
- A notice of
sale must be mailed the
borrower, at his last known
address, at least twenty (20)
days prior to the scheduled day
of sale. The notice of sale
must also be published in a
newspaper within the
county.
- The sale is
conducted by the trustee at
public auction for cash to the
highest bidder. Anyone may bid,
including the lender. If the
lender is the winning bidder,
the borrower has one year (12
months) to redeem the
property.
More information on Missouri
foreclosure laws.
DISCLAIMER
