Mississippi foreclosure law

In Mississippi, lenders can foreclose on mortgages and deeds of trust in default. Both judicial and non-judicial processes (in and out of court) are allowed, depending on the contents of the contract. A Mississippi foreclosure takes an average of 60 days, or roughly two months.

Judicial foreclosure
In a judicial foreclosure, the lender files a lawsuit in order to obtain a court order to foreclose. This process is used when the contract does not contain a Power of Sale, a section that would otherwise allow the lender to foreclose outside of court. If the court confirms that the borrower has defaulted, they will declare the foreclosure and sell the home via public auction.

Non-judicial foreclosure
A non-judicial foreclosure is used when the contract includes a Power of Sale clause. The clause basically states that the borrower is authorizing the lender to sell the home as payment in case he or she defaults. The power may be used by the lender or extended to a representative, known as a trustee.

The procedures and terms specified in the Power of Sale are usually followed. However, if the clause does not contain sufficient information, the foreclosure proceeds in the following steps:

1) The lender or trustee files a Notice of Sale at the county office where the home is located. The notice must contain the borrower’s name and the time, date, and place of the foreclosure sale.

2) The notice is posted at the door of the courthouse with jurisdiction in the property’s county. It will also be published in a local newspaper for at least three successive weeks, ending before the sale date.

3) The sale is conducted in the county where the home is located, or where the borrower currently resides if he or she lives elsewhere. Each county has a normal location for such sales. The home is sold for cash to the highest bidder.

Any time before the sale date, the borrower can cure the default by paying the past due amount, plus costs, attorney’s fees, and other related expenses. However, once the sale is made, they do not have a Right of Redemption, or a right to regain possession of the home even if they get the funds to pay the sale price.

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