Mississippi Foreclosure Laws

While the state of Mississippi allows judicial foreclosures, most foreclosures are non-judicial. A judicial foreclosure occurs if a mortgage does not include a Power of Sale clause, which entitles the lender to foreclose on a borrower (homeowner) found to be in default without obtaining a court ruling. It is then up to the court to schedule and conduct the foreclosure sale. In the case of a non-judicial foreclosure, the lender usually provides the homeowner with a Notice of Default 30 days before scheduling a sale. If the homeowner does not respond, then the process of foreclosure begins. In any case, the homeowner has the power to halt the foreclosure at any point up until the date of the sale by paying off the default amount owed.

Prior to the foreclosure sale, a Notice of Sale must be posted on the door of the county courthouse and published weekly for three consecutive weeks in a local newspaper. The sale can be postponed by announcing the postponement at the scheduled time and location of the sale.

On the day of the sale, a "trustee" (appointed by the lender) auctions off the property to the highest bidder. The winner, if other than the lender, must present the total amount of their bid in either cash or certified funds directly following the sale. If they cannot provide payment immediately, a new sale must be scheduled and published. If payment is secured, then the winning bidder is presented with a deed to the property and assumed full ownership. Any surplus generated by the sale in excess of the original mortgage loan is divided equally among any Junior Lien holders (anyone else who might have provided mortgage loans to the homeowner).

The foreclosure sale is final, and the original homeowner retains no rights to redemption.

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