Montana Foreclosure Laws

Written by Manuel Martinez, RealtyTrac contributorPublished Jun 6, 2013

Last updated Aug 10, 2023

Key Takeaways

Montana foreclosures can be judicial or non-judicial; out-of-court trustee sales are most common.
The full foreclosure process typically takes about 5-6 months.
A trustee sale must be at least 120 days after the notice of sale is filed.
Montana borrowers have no right of redemption, and lenders may not obtain a deficiency judgment.

Foreclosure Process Overview

Montana foreclosures are conducted either in court or out of court, depending on the existence of a power-of-sale clause in the mortgage or deed of trust. The total foreclosure process typically takes about 5-6 months.

Judicial	Non Judicial	Comment	Process Period	Publish Sale	Redemption Period	Sale/NTS
•	•	Trustee Sale mostly	150 days	50 days	None	Trustee

Pre-foreclosure Period

In the case of an in-court foreclosure, the court decides the appropriate amount due to the lender and gives the borrower a certain amount of time to pay the debt. If the borrower does not pay the debt, the lender issues a notice of foreclosure sale.

An out-of-court foreclosure, which is most common in Montana, occurs when the terms of the mortgage or deed of trust allow the lender to sell the property if the borrower defaults. The lender starts the foreclosure process by filing a notice of sale with the county recorder. The sale must be at least 120 days after this notice is filed, but the lender is not required to mail a default notice to the borrower before filing the notice of sale unless the mortgage or deed of trust requires that.

At any time before the foreclosure sale, the borrower may satisfy the debt by paying the full default amount plus costs and attorneys’ fees incurred. This stops foreclosure proceedings.

Notice of Sale / Auction

For out-of-court foreclosures, a copy of the notice of sale is posted at the property in an obvious spot at least 20 days before the sale. Additionally, notice of sale is mailed to the borrower at least 120 days prior to the sale and must be published once a week for three consecutive weeks in a local newspaper.

Foreclosure sales in Montana are by public auction, with the property going to the highest bidder. The auction is between 9 a.m. and 4 p.m. on the sale date at the county courthouse. The winning bidder receives a deed transferring ownership and can take possession of the property after 10 days.

The borrower has no rights of redemption and the lender may not obtain a deficiency judgment against the borrower.

Frequently Asked Questions

How long does foreclosure take in Montana?

About 5-6 months in total. In an out-of-court foreclosure, the sale must be at least 120 days after the notice of sale is filed.

Can a Montana homeowner stop a foreclosure before the sale?

Yes. Paying the full default amount plus costs and attorneys' fees any time before the sale stops the proceedings.

Is there a redemption period after a foreclosure sale in Montana?

No. The borrower has no right of redemption, and the winning bidder can take possession after 10 days.

Sources & References

Outside sources cited in this article.

Montana Code Annotated 71-1-315: Notice, sale, payment, Montana Legislature
Montana Code Annotated 71-1-317: Deficiency judgment not allowed, Montana Legislature

About the author: Manuel Martinez

RealtyTrac contributor

Manuel Martinez is a contributor to RealtyTrac who writes about local housing markets, home buying and real estate investing. He has written for RealtyTrac since 2013, covering city and state market reports, home buying guides and tips, investment financing and strategies for buying and flipping homes.