A foreclosure is the formal process by which a homeowner loses their right to a property because they fail to pay their mortgage. After the homeowner defaults on his or her obligations, they will have a short period of time in which they are allowed to try and make up the missed payments and work with their lender to avoid foreclosure. If they are unable to do so, the house will be foreclosed. Missouri foreclosures can be very fast, so it is important to contact a Missouri real estate attorney as soon as possible.
Under Missouri law, foreclosures can happen one of two ways:
- Judicial Foreclosure – This kind of foreclosure is authorized by Missouri Statute1 and takes place in the circuit court in the county where the property is located. Judicial foreclosures are rare in Missouri.
- Non-Judicial Foreclosure – This is the most common type of foreclosure in Missouri and is authorized by contract.
How Does Non-Judicial Foreclosure Work?
As long as you owe a balance on your mortgage, you do not actually own complete title to your house. Missouri is a “title theory” state, which means the title to your property remains in trust, held by a trustee, until you have satisfied your obligations to your lender. If you miss a payment, your lender then has authority to have the trustee holding the title to sell the property.
Notice of A Non-Judicial Foreclosure
In Missouri, non-judicial foreclosures can happen very quickly. If you are facing the possibility of foreclosure, it is important you contact a Missouri real estate attorney immediately as the average foreclosure period in St. Louis is around 60 days.
- Public Notice – Your lender must give notice before selling your property. Missouri law2 requires that the lender publish a notice of sale in a daily newspaper a minimum of 20 times, up until the date of the sale in towns with 50,000 inhabitants or more. The notice must state the date of the sale and include a description of the property.
- Notice to You – The law also requires that you be notified of the date, time and terms of sale more than 20 days before the date of sale by certified mail.
- After the proper notice has been given, the trustee has the right to sell your property on the date and time in the notices.
Call Today for a Free Consultation
If you are facing foreclosure, you should contact a Missouri real estate attorney for assistance right away. At The Law Offices of Kenneth P. Carp, we have the experience and expertise to help you handle a foreclosure and to resolve any other real estate issue you may be faced with. Call (636) 947-3600 today to schedule your consultation.