Mississippi Foreclosure Laws
In Mississippi, foreclosure proceedings can either be judicial or non-judicial. Typical foreclosure time-line is 3 to 4 months. A Deed of Trust is the Security of Instrument.
Judicial And Non-Judicial Foreclosure Information
Most of the foreclosures in Mississippi are non-judicial. When a judicial foreclosure takes place, this means that a Power of Sale clause is not included in the mortgage agreement. To begin the foreclosure, the lender should file a complaint against the borrower, who is found to be defaulting on payments, in court. If the court rules against the borrower or homeowner, the foreclosure sale will be scheduled.
Following the Mississippi foreclosure laws, non-judicial proceeding requires the lender deliver a Notice of Default to the borrower. This should be served 30 days prior to the date of the foreclosure sale. Within 30 days, the borrower is expected to respond to the notice to halt the foreclosure. To stop the foreclosure, the borrower has to pay the default amount owed to the lender. Out-of-court foreclosure happens when the Power of Sale is signed by the borrower in a mortgage agreement. This means that the borrower is aware of the consequence once he or she defaults on payments. This provision enables the lender to initiate a foreclosure sale once the borrower has defaulted on payments.
Foreclosure laws in Mississippi states that foreclosure sale is final; hence, a statutory right of redemption is not applicable. This means that once a property has been foreclosed, homeowners or borrowers can no longer reclaim ownership of the property.
In some instances, a deficiency judgment may be obtained by the lender. Deficiency happens when a property in foreclosure is sold for less than the amount of the loan. If deficiency judgment is granted, the lender collects the difference between what the property sold for at the public auction and the amount of the original loan from the borrower. From the date of the foreclosure sale, the lender is given one year to file for deficiency judgment.
The foreclosure sale, which is similar to that of a public auction where the highest bidder acquires the property, is conducted by a trustee. The winning bidder should secure the payment in order to receive the deed of the property bought.
Notice Of Sale Mississippi
Under the laws in Mississippi foreclosure, a Notice of Sale is important and should be published weekly for 3 successive weeks in a local newspaper. Also, it should be posted at the county courthouse. The Notice should have the following contents: date, time, and location of public auction, details on the deed of trust, property description, parties involved in the foreclosure, and the terms of the sale.
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