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 are facing a foreclosure in Missouri, read on to find out when you’ll learn about the sale, if you can redeem (repurchase) the home after the sale, whether you could be responsible for a deficiency after the foreclosure, and more.
This article contains a summary of some of the key features of Missouri foreclosure law along with citations to the statutes so you can read the law yourself.
The citations to Missouri’s foreclosure statutes are:
We’ve summarized important parts of Missouri’s foreclosure laws below. You can find more detailed articles on various aspects of Missouri foreclosure law in Nolo’s Missouri Foreclosure Law Center.
Missouri law allows both nonjudicial foreclosures (which take place out of court) and judicial foreclosures (which means the lender files a lawsuit to foreclose). Since the vast majority of foreclosures in Missouri are nonjudicial, this article focuses on that process.
The foreclosing party 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 foreclosing party 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. 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. (Learn more about reinstatement to avoid foreclosure.)
There is no statutory right to reinstate prior to the sale in Missouri. However, most deeds of trust allow the borrower to cure the default and reinstate the loan under certain circumstances. (Learn more about the difference between a mortgage and a deed of trust.)
Some states allow the borrower to redeem (repurchase) the home within a certain period of time after the foreclosure. In Missouri, the borrower gets one year to redeem after the sale if the foreclosing party 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. (For details see Nolo’s article If I lose my home to foreclosure in Missouri, can I get it back?)
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.
There is no anti-deficiency law in Missouri. The foreclosing party can sue the borrower for the deficiency after a nonjudicial foreclosure. (For a summary of the deficiency law in Missouri, see Missouri Laws on Post-Foreclosure Deficiency.)
In Missouri, if the foreclosed homeowners do not vacate (leave) the home following the nonjudicial foreclosure, the foreclosing party may file an unlawful detainer (eviction) lawsuit against them. Mo. Rev. Stat. § 534.030.