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In Montana, the lender may pursue either a Judicial or Non-Judicial Foreclosure. If no “power of sale” clause is present in the original loan documents, the lender must sue the borrower in court to obtain a decree of the amount owed. The court will give the borrower a period of time to cure the default and will issue a notice of sale if the borrower does not satisfy the amount owed.
In the Non-Judicial Foreclosure process, a “power of sale” clause is present in the original mortgage documents. This clause authorizes the lender to sell the property in case the borrower defaults on the loan.
The sales process in Montana requires the notice of sale to be mailed by registered or certified mail to the borrower's last known address and posted on the property no less than twenty (20) days before the sale date. The notice must also be published for three (3) consecutive weeks in a local newspaper that is generally circulated in the county in which the property is located.
The notice of sale must contain a legal description of the property, the nature of the default, the book and page on which the deed is recorded, and the borrower, lender, and trustee information.
The lender's trustee conducts the sale as a public auction at the time and place specified in the notice of sale. The sale must take place between 9:00 AM and 4:00 PM. The sale may be postponed in Montana for up to fifteen (15) days, but a notice of postponement must be posted at the time and place of the originally scheduled sale.
In Montana, there is no redemption period after the sale for the borrower, and the lender is not allowed to sue the borrower for a deficiency judgment. |
