Modern media presents foreclosures as dramatic events that come with little forewarning or time to come up with alternative resolution options. In reality, foreclosures require a lot of preplanning, communication, and regulatory compliance. Foreclosures often have months and sometimes years of planning before the commercial real estate property goes to auction.
In Missouri, when commercial real estate property is foreclosed, it is sold to the highest bidder on the date specified in the Notice of Sale (NOS). Yet, before the auction can take place, the property must go through the pre-foreclosure process. It is not uncommon for lenders to delay beginning the foreclosure process for months or even years after the borrower stops making payments. However, when the lender has exhausted alternative resolution options and is ready to begin the commercial foreclosure process, a firm like Total Lender Solutions can provide the partnership and expertise to get lenders started.
How to Start the Commercial Foreclosure Process in Missouri
In Missouri, pre-foreclosure begins once the borrower misses a payment. Lenders must then send borrowers a breach letter informing them of the missed payment. Borrowers have a chance to rectify the breach. If a borrower is in breach for too long, most lenders will seek out alternative resolution options, including loan modification or forbearance. However, if the borrower is delinquent for more than 120 days and lenders have exhausted the alternative options they wish to pursue, lenders may begin the foreclosure process.
When beginning the commercial foreclosure process on a deed of trust, the lender must reach out to their third-party trustee and order them to begin the foreclosure process. Compared to many other nonjudicial states, Missouri has a relatively short pre-foreclosure period. After the 120 days are up, the third-party trustee prepares the Notice of Sale and sets the sale date at about 40-50 days from the date the notice was issued. The notice is recorded publicly in the county where the property is located and must be published every day for 20 days in a row, or once a week for four weeks leading up to the sale date. The trustee must send the notice of sale to the borrower at least 20 days before the sale date.
Related Post: The Missouri Foreclosure Process: What You Need to Know
The First Step: Calling Your Third-Party Trustee Partner
Foreclosures can be complex, especially when dealing with commercial real estate. In Missouri, the price of noncompliance is steep and can lead to fines, lost revenue, and lawsuits. Lenders, especially small-to-medium lenders enacting their first-ever foreclosure, are encouraged not to enact a foreclosure without a foreclosure firm like Total Lender Solutions. Not all non judicial states are the same, so we have experts with specialized knowledge on compliance rules and regulations for the state of Missouri. The sooner you involve an expert in the commercial foreclosure process, the smoother your foreclosure is bound to go, protecting your assets and giving your team peace of mind.
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensure that our clients feel confident in reaching a successful outcome. Contact us today.
Learn More: Missouri Foreclosure Pricing Calculator
