Missouri foreclosure law

Missouri foreclosure can be carried out in judicial and non-judicial methods, which means a lender can foreclose in or out of court. The primary security instruments used are mortgages and deeds of trust, and the typical wait time is 60 days (about two months).

Judicial foreclosure
A judicial foreclosure involves a lawsuit filed by the lender against the borrower. If the court rules in favor of the lender, it issues a court order and the foreclosure is declared. Once this is done, the home is usually put up for public auction and sold to the highest bidder. This process is followed when the contract does not include a Power of Sale, a clause that otherwise lets the lender sell the home directly.

Non-judicial foreclosure
The Power of Sale, when signed, serves as an authorization from the borrower allowing the lender to sell the home in case of default. In contracts containing this clause, the authority may be executed by the lender himself or a representative known as the trustee. If the clause specifies the terms of the sale, these will generally be followed; otherwise, the foreclosure takes place in a government-appointed method.

First, the lender sends a Notice of Sale via mail to the borrower’s last known address, at least 20 days before the sale date. The same notice is also published in a newspaper circulated in the county where the property is located.

If the borrower doesn’t cure the default within a given deadline, the foreclosure sale is carried out. At the public auction, usually done by the trustee, anyone including the lender can make a bid.

Right of redemption and deficiency suits
The Right of Redemption, a one-year period after the sale during which the borrower can pay off the home and regain possession, is given only when the lender is the winning bidder. Deficiency suits aren’t allowed in either judicial or non-judicial foreclosure.

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