Montana
Foreclosure Law
Summary
Quick
Facts
-
Judicial Foreclosure Available:
Yes
-
Non-Judicial Foreclosure
Available: Yes
- Primary
Security Instruments: Deed of
Trust, Mortgage
-
Timeline: Typically 150
days
- Right
of Redemption:
No
-
Deficiency Judgments Allowed:
Varies
In Montana,
lenders may foreclose on deeds of
trusts or mortgages in default
using either a judicial or
non-judicial foreclosure
process.
Judicial
Foreclosure
In judicial
foreclosure, a court decrees the
amount of the borrowers debt and
gives him or her a short time to
pay. If the borrower fails to pay
within that time, then the court
will issue a notice of
sale.
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 non-judicial power
of sale foreclosure is carried
out as follows:
A notice of
sale must be recorded in the
county where the property is
located and then: 1) mailed, by
registered or certified mail, to
the borrower at his last known
address at least 120 days before
the foreclosure sale; 2)
published once a week for three
(3) successive weeks in a
newspaper of general circulation
in the county where the property
is located; and 3) posted on the
property at least twenty (20)
days before the foreclosure
sale.
The notice must
contain the time, date and place
of sale, the borrowers, lenders
and trustees name, a description
of both the property and the
default, and the book and page
where the deed is
recorded.
The trustee
must conduct the sale between the
hours of 9:00 am and 4:00 pm at
the courthouse in the county
where the property is located.
The property must be sold at
public auction to the highest
bidder.
The sale may be
postponed for up to fifteen (15)
days by posting a notice at the
time and place where the sale was
originally scheduled.
Lenders may not
obtain a deficiency judgment
against the borrower and the
borrower has no rights of
redemption.
More information on Montana
foreclosure laws.
DISCLAIMER
