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Missouri Foreclosure Law
In Missouri, foreclosures are handled both in and out of
court. The typical foreclosure process takes about two months.
Pre-foreclosure Period
An out-of-court foreclosure can be completed in as little as
two months. Upon a borrower's default, the lender must follow
the notice of default procedure in the mortgage or deed of
trust. According to case law precedent, the lender should
provide the borrower with an unambiguous warning that the
foreclosure process is about to begin. Once a lender provides
the required documents, the process of scheduling the property
for public auction begins. The borrower has the right to pay off
the debt before the sale and stop the foreclosure process. Court
foreclosures are not common. They only occur when title issues
exist or when a mortgage or deed of trust lacks a clause giving
the lender the right to sell if the borrower defaults.
Notice of Sale / Auction
Missouri requires that a notice of sale be published, and it
should be published in a newspaper where the property is
located. In a county with a city that has a population over
50,000, the trustee publishes a notice of the sale daily
starting 20 days before the sale and ending on the day of the
sale. In other counties, the trustee publishes a notice of sale
once a week for four weeks, with the last publication no more
than one week prior to the sale. The trustee in charge of the
public auction has to send a notice by mail to the borrower -
and all other affected parties - at least 20 days before the
date of the auction. The notice includes the following: the
date, time, place, and terms of the sale and a description of
the property. The deed of trust dictates who conducts the
foreclosure sale and when the sale occurs. The sale is usually
at the county courthouse between 9:00 a.m. and 5:00 p.m. If the
sale is postponed for more than seven days, the trustee must
resend and republish the notice. Borrowers have redemption
rights in Missouri only if the buyer at the sale was the lender,
but not if the buyer was anyone else. However, the redemption
requirements are so cumbersome that most borrowers do not take
advantage of this right. First, the borrower must give advance
notice of their intent, either at the sale or 10 days prior to
the sale. Second, the borrower must post a bond within 20 days
after the sale, which provides an amount equal to the following:
the mortgage interest, any secondary loan interest, and taxes
that will accrue for one year after the sale; foreclosure
expenses; legal fees; damages; plus 6 percent interest. If able
to meet these requirements, the owner can redeem the property
within one year by paying off the amount owed plus any fees.
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