|Judicial||Non-Judicial||Process Period||Sale Publication||Redemption Period||Sale/NTS|
|Yes||Yes||60 Days||10 Days||365 Days||Trustee|
|Comments: Judicial Foreclosures are not common|
In Missouri, foreclosures are handled both in and out of court. The typical foreclosure process takes about two months.
An out-of-court foreclosure can be completed in as little as two months. Upon a borrower’s default, the lender must follow the notice of default procedure in the mortgage or deed of trust. According to case law precedent, the lender should provide the borrower with an unambiguous warning that the foreclosure process is about to begin. Once a lender provides the required documents, the process of scheduling the property for public auction begins. The borrower has the right to pay off the debt before the sale and stop the foreclosure process.
Court foreclosures are not common. They only occur when title issues exist or when a mortgage or deed of trust lacks a clause giving the lender the right to sell if the borrower defaults.
Notice of Sale / Auction
Missouri requires that a notice of sale be published, and it should be published in a newspaper where the property is located. In a county with a city that has a population over 50,000, the trustee publishes a notice of the sale daily starting 20 days before the sale and ending on the day of the sale. In other counties, the trustee publishes a notice of sale once a week for four weeks, with the last publication no more than one week prior to the sale. The trustee in charge of the public auction has to send a notice by mail to the borrower – and all other affected parties – at least 20 days before the date of the auction. The notice includes the following: the date, time, place, and terms of the sale and a description of the property.
The deed of trust dictates who conducts the foreclosure sale and when the sale occurs. The sale is usually at the county courthouse between 9:00 a.m. and 5:00 p.m. If the sale is postponed for more than seven days, the trustee must resend and republish the notice.
Borrowers have redemption rights in Missouri only if the buyer at the sale was the lender, but not if the buyer was anyone else. However, the redemption requirements are so cumbersome that most borrowers do not take advantage of this right. First, the borrower must give advance notice of their intent, either at the sale or 10 days prior to the sale. Second, the borrower must post a bond within 20 days after the sale, which provides an amount equal to the following: the mortgage interest, any secondary loan interest, and taxes that will accrue for one year after the sale; foreclosure expenses; legal fees; damages; plus 6 percent interest. If able to meet these requirements, the owner can redeem the property within one year by paying off the amount owed plus any fees.