Montana Foreclosure Laws

Both judicial and non-judicial foreclosures are used in Montana, depending on the mortgage or deed of trust involved. If the mortgage contains a Power of Sale clause, then the lender maintains the right to sell a defaulted borrower's property without a court order and a non-judicial foreclosure may be pursued. This is the most common kind of foreclosure in Montana. In this case the lender may begin the foreclosure process by filing a Notice of Default with the county records office. The lender may then schedule a foreclosure sale, but it must take place at least 120 days after the Notice is initially filed. Montana foreclosure law does not require the lender to notify the homeowner before issuing a Notice of Default, unless stipulated by individual mortgage agreements.

If a judicial foreclosure is pursued the court, assuming they have ruled against the homeowner, must issue an order stating the full amount owed to the lender and a reasonable time frame in which the homeowner may pay. If this time period expires and payment has not been received, the lender can schedule a foreclosure sale.

In either case, the homeowner can stop the foreclosure proceedings at any point up until the foreclosure sale by paying the default amount owed plus any additional interest gathered.

In the case of non-judicial foreclosures, a Notice of Sale must be issued by the lender and posted on the property in question at least 20 days before the sale is to take place. In addition, a Notice of Sale must be published in a local weekly newspaper for three consecutive weeks. The homeowner must be served with a copy at least 120 days before the date of sale.

Foreclosure sales in Montana are conducted as public auctions, the property being awarded to the highest bidder. The auction usually occurs at the county courthouse, though the decision of location is left largely up to the lender. Upon payment, the winning bidder receives a deed to the property and may take possession of it ten days after the deed has been issued.

The original homeowner maintains no right to redemption, and the lender is not allowed to pursue a deficiency judgment against the homeowner for any debt not satisfied by the sale of the property.

Click here to begin your search in Montana