Missouri foreclosures are usually straightforward: The entire process typically takes place out of court with the lender mailing the homeowner a notice prior to the sale and publishing the notice in a newspaper.
If you’re facing a foreclosure in Missouri, read on to find out when you’ll learn about the sale, if you can redeem (repurchase) the home afterward, whether you could be responsible for the deficiency following a foreclosure, and more.
Because the vast majority of foreclosures in Missouri are nonjudicial, this article focuses on that process.
Below you’ll find details on foreclosure laws in Missouri, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. (If you need help finding the statutes, see Finding Your State’s Foreclosure Laws.)
How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you’re facing a foreclosure.
The foreclosing bank or trustee (the third party that handles nonjudicial foreclosures in Missouri) must mail a foreclosure sale notice to the borrower no less than 20 days prior to the date of the foreclosure sale. (Mo. Rev. Stat. § 443.325).
The bank or trustee must also publish an advertisement of the foreclosure sale in a newspaper either every day for 20 days or once a week for four weeks, depending on the situation. (Mo. Rev. Stat. § 443.320).
“Reinstating” is when you catch up on the missed payments, plus fees and costs, in order to stop a foreclosure.
Missouri law doesn’t provide a statutory right to reinstate before the sale. But most deeds of trust allow the borrower to cure the default and reinstate the loan by a specific deadline. (Check your loan documents to see if you get the right to reinstate and to find out the deadline to complete a reinstatement.)
Some states allow the borrower to redeem the home within a specific period of time after a foreclosure. In Missouri, the borrower gets one year to redeem after the sale if the foreclosing bank purchases the home at the foreclosure sale. (Mo. Rev. Stat. Ann. § 443.410).
To redeem, the borrower must give written notice of the intent to redeem at the sale or within ten days before the sale and satisfy a bond requirement. (Mo. Rev. Stat. Ann. §§ 443.410, 443.420).
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment, called a “deficiency judgment,” against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
Missouri doesn’t have an anti-deficiency law. The bank can sue the borrower for the deficiency after a nonjudicial foreclosure.
In Missouri, if the foreclosed homeowners don’t vacate (leave) the home following the nonjudicial foreclosure, the foreclosing bank may file an unlawful detainer (eviction) lawsuit against them. (Mo. Rev. Stat. § 534.030).
If you have questions about the foreclosure process in Missouri or want to learn about potential defenses to a foreclosure, consider talking to a foreclosure lawyer. It’s also a good idea to make an appointment to speak to a HUD-approved housing counselor, especially if you want to learn about different loss mitigation (foreclosure avoidance) options.