redeem the property after the sale (in some circumstances) get any excess money after a foreclosure sale. So, don't get caught off guard if you're a Missouri homeowner who's behind in mortgage payments. Learn about each step in a Missouri foreclosure, from missing your first payment to a foreclosure sale.
If you don't respond with a written answer, the lender will automatically win the case. But if you choose to defend the foreclosure lawsuit, the court will review the evidence and determine the winner. If the lender wins, the judge will enter a judgment and order your home sold at auction.
Many Missouri deeds of trust have a provision that requires the lender to send a notice, commonly called a " breach letter ," informing you that the loan is in default before the lender can accelerate the loan. The breach letter gives you a chance to cure the default and avoid foreclosure.
Reinstating the Loan. Even though Missouri law doesn't provide a statutory right to reinstate the loan before the sale, many deeds of trust, like the uniform Fannie Mae/Freddie Mac deeds of trust, provide the borrower the right to complete a reinstatement.
Under Missouri law, if the foreclosing lender buys the property at the foreclosure sale, you get one year to redeem the home following the sale. If a third party buys the home at the sale, you don't get a right to redeem.
Generally, once the lender gets a deficiency judgment, the lender may collect this amount—in our example, $50,000 —from the borrower. In Missouri, the foreclosing party can sue you for the deficiency after a nonjudicial foreclosure. (Mo. Rev. Stat. § 443.240).
Now, however, federal and state laws heavily regulate loan servicing and foreclosure processes. And most of the laws give protections to borrowers. Servicers generally have to provide borrowers with loss mitigation opportunities, account for each foreclosure step, and strictly comply with foreclosure laws.
In Missouri, lenders may fore close on deed s of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust.
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.
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 foreclosure may proceed as follows: 1 A notice of sale must be mailed the borrower, at his last known address, at least twenty (20) days prior to the scheduled day of sale. The notice of sale must also be published in a newspaper within the county. 2 The sale is conducted by the trustee at public auction for cash to the highest bidder. Anyone may bid, including the lender. If the lender is the winning bidder, the borrower has one year (12 months) to redeem the property.
Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder. 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.
Otherwise, the foreclosure may proceed as follows: A notice of sale must be mailed the borrower, at his last known address, at least twenty (20) days prior to the scheduled day of sale. The notice of sale must also be published in a newspaper within the county.
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".
If you're facing a COA or HOA foreclosure in Missouri, consider consulting with a foreclosure attorney to learn more about the law and how it applies to your situation and to discuss all legal options available in your particular circumstances.
In Missouri, a COA's lien may be foreclosed in the same manner as a mortgage on real estate by filing a lawsuit in court. It may also be foreclosed by power of sale (a typical Missouri nonjudicial foreclosure ), which happens outside of court. (Mo.
In Missouri, a COA is entitled to a lien for assessments from the time the assessments are due. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment becomes due. (Mo. Rev. Stat. § 448.3-116 (1)).
Missouri law doesn't cover the priority of HOA liens. So, to find out the priority of an HOA lien, read the association's governing documents. HOA liens are usually subordinate to a first lien deed of trust, but not always.
But an association's right to foreclose isn't dependent on whether you're paid up on your mortgage. Instead, lien priority determines what happens in a foreclosure.
Missouri's Nonprofit Corporation Law is in Chapter 355 of the Missouri Revised Statutes. Also, the policies regarding the operation of the HOA, including those regarding assessments liens, can be found in the association's governing documents, like the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws.