State Foreclosure Laws

Summary:

The judicial foreclosure process must be employed when no power of sale clause is included in the loan document. The lender must sue the defaulted borrower to obtain a court order to foreclose.

Non-judicial foreclosure may be used when the loan document includes a power of sale clause authorizing the lender to sell the property to recover the loan balance in the event of the borrowers’ default. If the power of sale clause includes instructions as to the time, place, and terms of sale, then that procedure must be observed. Otherwise, the process is as follows:

1. A notice of sale must be published in a newspaper of general circulation once a week on the same day each week for four consecutive weeks, and mailed to the borrowers at their last known address at least 20 days prior to the scheduled sale date.
   
   
2. The sale shall be conducted as a public auction by the lender’s representative or trustee. Anyone, including the lender may bid. Only if the lender is the winning bidder, shall the borrower have one year in which to redeem the property.
   
   
3. No deficiency judgments are allowed.

Links:

• Chapter 141 Section 141.400 Suit for foreclosure
  Law which regulates the beginning of the foreclosure process.
  
  
• Chapter 141 Section 141.430 Publication of notice of foreclosure--form of notice (first class charter counties)
  Law which regulates that a foreclosure be made public notice.
  
  
• Chapter 141 Section 141.550 Conduct of sale
  Law which regulates the procedures of a sale.
  
  
• Chapter 141 Section 141.580 Confirmation or disapproval of sale by court--proceeds applied
  Law which regulates the adequate bid amount after a sale.
  
  
• Chapter 141 Section 443.320 Notice, contents--how published
  Law which regulates the criteria of how a sale must be published.
  
  
• Missouri State Statutes