Missouri Foreclosure Laws: Process, Timeline and Your Rights

Both. A deed of trust or mortgage on land can be foreclosed by a court lawsuit, or, at the option of the holder of the debt, by a trustee's sale out of court under a power of sale in the document. Sales made under a power of sale are valid and end the owner's equity of redemption, except for the limited statutory redemption described below.

For a power-of-sale (trustee's) sale, at least 20 days' notice of the sale must be given, and the sale must be held in the county where the land is. The published notice must list the recording information for the mortgage or deed of trust, the grantors, the time, terms and place of sale, and a description of the property. It must be published in a newspaper: in counties with a city of 50,000 or more, at least 20 times in a daily paper continuing to the day of sale; elsewhere, in a weekly paper for four successive issues (or once a week for four successive weeks), with the last insertion no more than one week before the sale. At least 20 days before the sale, the foreclosing lender or trustee must also send the notice by certified or registered mail to the borrower named in the deed of trust, to the record owner as of 40 days before the sale, and to anyone who recorded a request for notice.

The statute sets a minimum of 20 days' notice before a trustee's sale (both the published notice and the mailed notice to the borrower and record owner). If the deed of trust requires longer notice, the longer period applies.

Limited. After a trustee's sale, the borrower (or heirs or assigns) can redeem within one year of the sale only if the property was bought by the lender (the holder of the debt) or someone buying for the lender. To keep this right, the borrower must give written notice of intent to redeem at the sale or within 10 days before the advertised sale date, and must post a bond approved by the circuit court within 20 days after the sale. To redeem, the borrower must pay the debt, interest, taxes, prior liens paid by the buyer, and the costs of sale. If no bond is given, there is no statutory redemption.

If a residential tenant (not in violation of the lease law) lived in the property before the foreclosure, the new owner after the sale must give the occupant written notice that the sale happened, who the new owner is, and that the occupant has at least 10 business days from the notice to leave if the owner wants possession. No eviction case can be started during those 10 business days. The notice must be mailed (certified or registered mail if the occupant's name is known; otherwise regular mail to "occupant") in an envelope marked "Notice to Occupant Following Foreclosure," and posted on the door. The new owner and occupant may agree to let the occupant stay.

Yes, for condominiums under the Uniform Condominium Act. The condo association has a lien on a unit for assessments and fines from the time they are due, and it may foreclose the lien like a mortgage, including by power of sale under Chapter 443. The lien has limited priority over an earlier first mortgage for up to six months of regular common-expense assessments, but the association loses that priority if it forecloses nonjudicially. The lien ends unless the association starts enforcement within three years after the assessments become due. If a rented unit's owner is more than 60 days behind, the association may demand that the tenant pay rent to it.

Missouri law requires a seller to disclose in writing if the seller knows the property was used to make methamphetamine, and if the seller knew or should have known it was the home of, or storage site or lab for, a person convicted of certain methamphetamine-related crimes.

After a delinquent property tax sale, the owner, a lienholder, an occupant, or anyone with an interest has an absolute right to redeem at any time during the one year after the sale, and a defeasible right to redeem until the buyer receives the collector's deed. To redeem, you pay the county collector the purchase amount, costs of sale, interest at the certificate rate (not more than 10% a year), and later taxes the buyer paid with 8% interest. Different rules apply to later offerings: property sold at a third offering has a 90-day redemption period, and sales after the third offering have no redemption period.

The Missouri Housing Development Commission (MHDC) is the state housing finance agency. Its Homeowners page refers people who want advice on default, foreclosure avoidance, credit or reverse mortgages to HUD-sponsored housing counseling agencies, which provide free or low-cost advice. MHDC's main phone number is (816) 759-6600.