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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 not have the right to sue the borrower for a deficiency judgment. |
