Missouri Judgment Foreclosing Mortgage and Ordering Sale

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A judicial foreclosure is one which results from a court action rather than from the power of sale given to a trustee. Judicial foreclosures occur when a trust deed or mortgage deed does not have a power of sale clause, thus compelling the lender to take the borrower to court. This is in contrast to a non-judicial foreclosure, in which a foreclosure can be completed outside the court system.
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FAQ

In Missouri, redemption can take place for up to one year after the sale of the property if it was bought at auction by the lender. However, if the property is bought by a third party, there is no redemption phase.

In Missouri, redemption can take place for up to one year after the sale of the property if it was bought at auction by the lender. However, if the property is bought by a third party, there is no redemption phase.

The term ?foreclosure action? refers to legal proceedings initiated by a lender after a borrower defaults on their mortgage. Lenders can enforce their rights through a foreclosure when borrowers fail to either make mortgage payments or fulfill the obligations outlined in their mortgage agreement.

Following a first-mortgage foreclosure, all junior liens (including a second mortgage and any junior judgment liens) are extinguished, and the liens are removed from the property's title. But the second-mortgage debt and creditor's judgment remain, even though they're no longer attached to the foreclosed property.

Under the PTFA, the lease survives foreclosure. You may stay in the property for the entire term of your lease or 90 days, whichever is longer. The only exception to this rule is if the new owner wants to live in your unit, in which case you are still entitled to 90 days before you can be forced to move.

Under Missouri law, if the foreclosing lender buys the property at the foreclosure sale, you get one year to redeem the home following the sale. If a third party buys the home at the sale, you don't get a right to redeem.

Borrowers must be delinquent for 120 days before a Notice of Sale can be issued, and the sale is to occur forty to fifty days after the notice. Lenders must give at least a twenty-day notice of the sale. They must publish the foreclosure in a newspaper in the county where the property is located.

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Missouri Judgment Foreclosing Mortgage and Ordering Sale