The foreclosure sales in the State of Missouri are both, judicial and non-judicial. The process of foreclosure generally takes approximately two months.

A non judicial, or out-of-court, process of foreclosure can be finished with a period as short as two months. The power-of-clause, which is normally included in the deed of trust, is exercised by the lender to dispose the property in sale to realize debts.

Once the borrower fails to make the payments, the lender shall issue the notice for default of payment and shall clearly state that the process of foreclosure shall begin if the payments are not made. Once the lender files all the necessary documents, the foreclosure process begins and the property is scheduled for a sale in public auction.

The borrower can halt the process of foreclosure at any time before the scheduled sale, by paying off the entire debts, along with costs and expenses.

Judicial foreclosures through the court are not generally followed. Such foreclosure procedures are initiated only if there are any issues or disputes with the title of the property, or when there is no power-of-sale clause in the mortgage which gives the lender the right to sell the property in the event of a default.

In the State of Missouri, it is mandatory to publish the notice of foreclosure sale in a daily newspaper in the location of the property. If the city in a county has a population of more than 50,000, the notice of foreclosure sale shall be published daily in the newspaper and such a publication shall begin on a date 20 days prior to the date of sale and end on the date of the scheduled sale.

In the remaining counties, the notice shall be published by the lender one day per week, for four consecutive weeks, and the last date of such a publication shall not be more than one week prior to the date of the sale.

The trustee, who is in charge of the public auction, has to send by mail the notice of the sale to the borrower, and all other stake holders, within a period not less than 20 days prior to the day of auction. The notice of sale shall include: the day, time and venue of sale, the terms and a complete description of foreclosed property.

The auction sale is held usually at the courthouse of the county, between the hours of 9:00 a.m. and 5:00 p.m. If there is a postponement of the sale for a period more than a week, the trustee shall re-issue and republish the foreclosure notice.

Borrowers can redeem the property only if the winning bidder at the sale is the lender, and not anyone else. Even then, the requirements are so complex that the borrowers are not too keen. For the redemption, the borrower must first notify in advance such an intention 10 days earlier, or at the sale. Next, the borrower shall post a bond for a value equal to: interest, any junior lien interest, taxes for one year, expenses of foreclosure, legal fees, damages, interest of 6%; all put together within 20 days of the date of the sale. If these requirements are met, the borrower can redeem within a year by remitting the entire amount due plus any costs.

If you need more information about Missouri foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.