Missouri Foreclosure Laws
Expected Timeline: About two months
Security Instrument: Mortgage or Deed of Trust. Deed of trust most common.
Type of Process: Judicial or nonjudicial. Nonjudicial foreclosure most common in Missouri.
Protections for Servicemembers: Mo. Ann. Stat. § 41.944
Time to Respond: Twenty day notice of sale must be sent by registered and certified mail to homeowners.
Reinstatement Period: None.
Protections for High-Cost Mortgages: None.
Redemption Period: Homeowners must give foreclosing party a ten-day notice of intent to redeem before the sheriff sale. The lender must buy the property at the auction. If these conditions are met, redemption is available up to one year after sale.
Eviction Process: New owner must give former owners one month’s written notice to vacate the property.
Deficiency Judgments: Allowed in separate lawsuit.
Limits on Deficiency Judgments: Deficiency judgments allowed.
Cash Exempted in Bankruptcy: $600 for single person, $1,200 for married couple.
State Statutes: Mo. Rev. Stat. § 443.290 to 443.453
In Missouri , the lender may pursue either a Judicial or Non-Judicial Foreclosure process. The Judicial Foreclosure process is used when the loan documents do not contain a power of sale clause. The lender must sue the borrower in court to obtain an order to foreclose.
If the loan documents contain a power of sale clause, the lender can use the Non-Judicial Foreclosure process. This clause authorizes the lender to sell the property in the event the borrower defaults. If the clause specifies the time, place, and terms of the sale, then those procedures must be adhered to.
The sales process in Missouri requires the lender to mail to the last known address of the borrower a copy of the notice of sale at least twenty (20) days before the scheduled sale date. The notice must also be published in a local newspaper of general circulation for four (4) consecutive weeks. It must be once a week on the same day per week as the last publication.
The lender’s trustee or representative conducts the sale as a public auction. Anyone may bid on the property, including the lender.
If the lender is the high bidder at auction, the borrower has a one year right to redeem the property. If anyone else is the high bidder, the borrower has no redemption period in Missouri.
The lender does have the right to sue the borrower for a deficiency judgment.
State Website: www.moga.state.mo.us