Montana Foreclosure Laws

In the State of Montana, real estate foreclosures are conducted judicially or non-judicially depending on whether or not a clause for power-of-sale exists in the deed or mortgage. The entire foreclosure process would typically take 5-6 months.

Pre-foreclosure Period

In a judicial foreclosure, that is in-court, the debt due by the borrower is judged by the court and the court grants a certain time to the borrower in order to pay the debt. In case the borrower fails to remit the due amount, the lender shall issue a notice to foreclose the debt and offer the property in sale.

If there exists a power-of-sale clause in the mortgage deed, which is the general practice in the State of Montana, the lender shall have the rights to offer the property on sale, and sell, in the event of any default of payments by the borrower. The procedure is initiated by the lender by the filing of a notice with the recorder of the county.

The sale shall be scheduled not less than a period of 120 days from the date of filing the notice. However, it is not required that the lender send by mail a notice of default to the borrower, before the same is filed with the county recorder, unless such an act is stipulated in the mortgage.

The borrower can halt the foreclosure process by satisfying the debt by remitting the entire default amount, plus any costs and expenses incurred by the lender.

Notice of Sale / Auction

In out-of-court procedures of foreclosure, the notice of foreclosure sale is posted in a conspicuous place in the property and such a posting shall be done at least 20 days prior to the date of the sale. In addition to this, the sale notice is sent to the borrower by mail within a period not less than 120 days before the date of the sale. The notice of sale must also be published once every week, for a period of three weeks consecutively in a local daily.

In the State of Montana, the foreclosure sales are done in public auction. The property shall be awarded in sale to the highest bidder. The auction shall be held between the hours of 9:00 a.m. and 4:00 p.m. at the scheduled date of the sale, in the courthouse of the county. The bidder who has won the auction shall receive a deed that shall transfer the ownership rights of the property in favor of the bidder.

The possession of the sold property can be taken by the winning bidder after a period of 10 days from the date of the sale.


In the state of Montana, the borrower shall have no redemption rights. Besides, the lender cannot file for a deficiency judgment for any shortfall of funds against the borrower.

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

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