Missouri Foreclosure Laws

Missouri allows both judicial and non-judicial foreclosures. A lender may proceed with a non-judicial foreclosure if a mortgage contains a Power of Sale clause stating the lender's right to foreclose on a borrower (homeowner) in default. Under Missouri foreclosure law, the lender must first notify the homeowner of their outstanding debt. If the lender does not then receive payment within a specific amount of time, a foreclosure sale of the property may be scheduled.

In all other scenarios, the lender must consult the court system for a ruling before pursuing foreclosure. Because of the commonality of Power of Clause mortgages, judicial foreclosures are rare in Missouri.

In counties that contain a city with a population of over 50,000 a Notice of Sale must be published in a local newspaper for a period of 30 days, the last publication appearing on the day of the sale. In all other counties, the Notice of Sale must be published weekly for four weeks, the last notice appearing no less than one week before the sale if to take place. The trustee in charge of the sale (usually appointed by the lender) must notify the homeowner of the sale at least 20 days before it is to take place.

Although the foreclosure sale usually takes place at the county courthouse between the hours of 9 a.m. and 5 p.m., individual mortgages or deeds of trust might indicate specific arrangements, which must be adhered to. If the sale is postponed for more than seven days, the trustee must publish the Notice of Sale again. The sale is conducted by the trustee in the style of a public auction; the property is awarded to the highest bidder. Once a winning bidder has provided payment, that person is transferred full ownership of the property.

If the lender is determined to be the winning bidder at the auction, then the original homeowner is afforded no redemption rights to the property. In any other case the homeowner is entitled to redemption rights, although they are so cumbersome they are rarely invoked.  Under Missouri foreclosure law, the homeowner must give notice of their intent to redeem either at the sale or ten days prior. The homeowner then has 20 days in which to provide full payment of the following: the mortgage interest, any secondary loan interest, all taxes that will accrue for one year after the sale, foreclosure expenses, legal fees, and an all-inclusive charge of 6 percent interest. If these payments are met, the homeowner is then afforded one full year in which to pay off the default amount originally owed plus any interest gathered on that amount.

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