The Total Lender Solutions team operates in several different states and understanding each state’s foreclosure laws and procedures are crucial to us and our clients. In this series, we’ve reviewed the non-judicial foreclosure process in California, Arizona, Texas, and Nevada. While these processes generally follow the same guidelines, there are some differences from state to state.
Total Lender Solutions now operates in Missouri and Oregon. Let’s take a look at the unique steps of a non-judicial foreclosure in Missouri.
Non-Judicial Foreclosure in Missouri: How It Benefits Lenders
Non-judicial foreclosures, as in most states, are the more popular option. Non-judicial foreclosures are cheaper and timelier than judicial foreclosures because courts are not involved. Additionally, the sale can go forward without the court’s approval.
In Missouri, redemption can take place for up to one year after the sale of the property if it was bought at auction by the lender. However, if the property is bought by a third party, there is no redemption phase.
Important Steps for Lenders in Non-Judicial Foreclosure
Missouri’s foreclosure laws are extremely complex. Lenders can reduce their exposure by making sure that they follow the state’s requirements. Adhering to the steps in the process is crucial. Here are some to keep in mind.
In the state of Missouri, borrowers sign deeds with Power of Sale clauses. This gives lenders the right to sell the property to cover the remaining balance of a loan. Lenders send a breach letter to borrowers who miss a payment. Borrowers must be delinquent for 120 days before a Notice of Sale can be issued, and the sale is to occur forty to fifty days after the notice. Lenders must give at least a twenty-day notice of the sale. They must publish the foreclosure in a newspaper in the county where the property is located. Depending on the size of the town, they must publish either twenty times through to the day of sale, or once a week for four successive weeks, with the last one taking place the week of the sale.
Missouri is unique in that sales must be cash, not loans. Additionally, Missouri has a one-track law that prevents dual-tracking. The lender may be able to receive a deficiency judgment against the borrower if the property sells for less than the total debt
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 ensures that our clients feel confident in reaching a successful outcome. Contact us today.
