Missouri Foreclosure Laws

Foreclosure laws in Missouri support both judicial and non-judicial foreclosures. Also, the Deed of Trust is the Instrument of Security. Typical foreclosure timeline is 2 months.

Judicial And Non-Judicial Foreclosure Information

In Missouri, when a borrower defaulted on payments, lender can pursue either judicial or out-of-court foreclosure. A Power of Sale clause determines if the foreclosure will be held on-court or out-of-court. However, judicial foreclosures are uncommon in Missouri since majority of the mortgage agreements contain the Power of Clause.

A non-judicial foreclosure is applicable if a mortgage has a Power of Sale clause which authorizes the lender to foreclose the borrower or homeowner’s property in the event of payment defaults. Under Missouri foreclosure laws, it is necessary that the lender notifies the borrower of their outstanding debt before pursuing a foreclosure. If the borrower fails to pay the amount owed, a foreclosure sale, which is in a form of public auction, of the property may be scheduled.

Right of redemption is allowed wherein the homeowner, whose property has been foreclosed, has to pay off, in full, the sum of the unpaid mortgage load plus applicable costs. A one year redemption period is granted to the homeowner provides a notice of intent to redeem the property and payment for mortgage interest and other applicable fees. This notice is a pre-requisite in claiming for right of redemption and should be made within 20 days after the foreclosure sale.

The foreclosure laws in Missouri do not support deficiency judgments. In some states that allow deficiency judgment, a lender can collect the difference between the amount of the property sold for at auction and the amount of the original loan. This happens when a property in question is sold for less than the amount of the loan. Once deficiency is granted, the borrower should pay that difference to the lender.

The foreclosure sale, which is similar to that of a public auction, will be conducted by the trustee. The highest bidder wins and acquires ownership of the property. Complete transfer of property ownership happens only once the winning bidder has provided the payment.

Notice Of Sale Missouri

A Notice of Sale is necessary and should be served. The Notice should be published in a local newspaper for at least 4 successive weeks. The final publication should appear on the date of the public auction. The trustee should notify the homeowner or borrower about the foreclosure sale at least 20 days prior to the date of the sale.

A foreclosure sale can be postponed. However, if it is more than 7 days, a Notice of Sale should be re-served.