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Montana Foreclosure Laws: Process, Timeline and Your Rights

Montana foreclosure rules: judicial or non-judicial, required notices, time frames, right to cure, redemption period, deficiency judgments, HOA liens and help for homeowners.

Quick answers for Montana

Judicial or non-judicial
Both. Under the Small Tract Financing Act, a trust indenture (deed of trust) on property of 40 acres or less can be foreclosed out of court by the trustee through advertisement and sale, or, at the lender's (beneficiary's) option, through a court case like a mortgage foreclosure. Mont. Code Ann. §§ 71-1-304, 71-1-313, 71-1-315
Time frames set by law
The trustee's sale date must be at least 120 days after the notice of sale is recorded, and the mailed notice must go out at least 120 days before the sale. The sale must be held between 9 a.m. and 4 p.m. Mont. Code Ann. §§ 71-1-313, 71-1-315
Redemption after the sale
It depends on the type of foreclosure. A trustee's sale of a trust indenture under the Small Tract Financing Act conveys the property without any right of redemption. Mont. Code Ann. §§ 71-1-318, 71-1-228, 71-1-229, 25-13-801, 25-13-802
Deficiency judgments
Not allowed after a trustee's sale: when a trust indenture is foreclosed by advertisement and sale, no deficiency judgment may be entered against the borrower, a guarantor, or anyone else obligated on the debt. Mont. Code Ann. §§ 71-1-317, 71-1-232

Last verified: 2026-10-27

How foreclosure works

Judicial or non-judicialBoth. Under the Small Tract Financing Act, a trust indenture (deed of trust) on property of 40 acres or less can be foreclosed out of court by the trustee through advertisement and sale, or, at the lender's (beneficiary's) option, through a court case like a mortgage foreclosure. Ordinary mortgages are foreclosed through the courts.
Source: Mont. Code Ann. §§ 71-1-304, 71-1-313, 71-1-315
Required noticesFor a trustee's sale, the trustee or lender must record a notice of sale in each county where the property is located, stating the default, the amount owed, the election to sell, and the date, time and place of sale. At least 120 days before the sale, a copy of the recorded notice must be sent by certified mail to the borrower (grantor), anyone named in the trust indenture to receive notice, anyone who recorded a request for notice, successors in interest, and later lienholders of record. At least 20 days before the sale, the notice must be posted in a conspicuous place on the property, and it must be published in a local newspaper once a week for 3 successive weeks (the last publication at least 20 days before the sale).
Source: Mont. Code Ann. §§ 71-1-313, 71-1-314, 71-1-315
Time frames set by lawThe trustee's sale date must be at least 120 days after the notice of sale is recorded, and the mailed notice must go out at least 120 days before the sale. The sale must be held between 9 a.m. and 4 p.m. The trustee may postpone a sale by public announcement for up to 15 days; if a sale is stopped by a bankruptcy stay or court order, each postponement may be up to 30 days and all postponements together may not exceed 120 days.
Source: Mont. Code Ann. §§ 71-1-313, 71-1-315
Right to catch up (reinstate)Yes, for trust indentures. At any time before the time set for the trustee's sale, the borrower (or a successor, junior lienholder, or junior trust-indenture beneficiary) may pay the lender the entire amount then due, including actual costs and reasonable trustee's and attorney fees, but not the part of the principal that would not be due without the default. The foreclosure is then canceled and the loan is reinstated as if it had never been accelerated.
Source: Mont. Code Ann. § 71-1-312

After the sale

Redemption after the saleIt depends on the type of foreclosure. A trustee's sale of a trust indenture under the Small Tract Financing Act conveys the property without any right of redemption. For court-ordered (judicial) sales and power-of-sale mortgages other than trust indentures, the redemption rules for execution sales apply: the debtor or a junior lienholder may redeem within 1 year after the sale by paying the purchase price with interest, plus taxes, assessments, and reasonable repair and maintenance costs the buyer paid. During the redemption period, a buyer at a mortgage foreclosure is not entitled to possession against a debtor who personally lives in the home with family.
Source: Mont. Code Ann. §§ 71-1-318, 71-1-228, 71-1-229, 25-13-801, 25-13-802
Deficiency judgmentsNot allowed after a trustee's sale: when a trust indenture is foreclosed by advertisement and sale, no deficiency judgment may be entered against the borrower, a guarantor, or anyone else obligated on the debt. A deficiency judgment is also not allowed when a seller-financed purchase-price mortgage is foreclosed.
Montana Housing's mortgage FAQ warns that a borrower who owes more than the home is worth could be liable to the loan's insurer for the difference under a deficiency judgment; whether that applies depends on the loan and type of foreclosure.
Source: Mont. Code Ann. §§ 71-1-317, 71-1-232

HOAs, taxes and selling

HOA liens and foreclosureYes, for condominiums. A condo owners' association that records a verified claim has a lien on the unit for unpaid common expenses. The lien is ahead of other liens except tax and assessment liens and a recorded first mortgage or trust indenture. It is foreclosed through court proceedings that follow the construction-lien foreclosure procedure, and the association may instead sue for a money judgment without foreclosing.
These sections cover condominiums under the Unit Ownership Act; other homeowners associations depend on their recorded covenants.
Source: Mont. Code Ann. §§ 70-23-607, 70-23-608
Property tax salesA property tax lien may be redeemed by the owner, the occupant, a holder of an unrecorded interest, or any interested party (such as a mortgage lender or lienholder with a recorded interest) up to the first working day in August, 3 years after the tax lien attached. For certain vacant subdivided lots with delinquent special improvement district assessments, the deadline is the first working day in August, 2 years after the lien attached.
Source: Mont. Code Ann. § 15-18-111

Getting help

Free help for homeownersMontana Housing (Montana Board of Housing, in the Department of Commerce) is the state housing finance agency. For borrowers with Montana Board of Housing loans, its Loss Mitigation Specialists can discuss options such as forbearance or repayment plans, loan modification, pre-foreclosure sale, and deed in lieu of foreclosure, and can connect borrowers with a list of HUD-approved housing counseling agencies. It warns that it never calls borrowers asking for personal or loan information.
Source: Montana Housing, Mortgage FAQs and Homeowners pages

Foreclosure & Homeowner Law FAQ

Is Montana a judicial or non-judicial foreclosure state?
Both. Under the Small Tract Financing Act, a trust indenture (deed of trust) on property of 40 acres or less can be foreclosed out of court by the trustee through advertisement and sale, or, at the lender's (beneficiary's) option, through a court case like a mortgage foreclosure. Ordinary mortgages are foreclosed through the courts.
What notice is required before a foreclosure sale in Montana?
For a trustee's sale, the trustee or lender must record a notice of sale in each county where the property is located, stating the default, the amount owed, the election to sell, and the date, time and place of sale. At least 120 days before the sale, a copy of the recorded notice must be sent by certified mail to the borrower (grantor), anyone named in the trust indenture to receive notice, anyone who recorded a request for notice, successors in interest, and later lienholders of record. At least 20 days before the sale, the notice must be posted in a conspicuous place on the property, and it must be published in a local newspaper once a week for 3 successive weeks (the last publication at least 20 days before the sale).
How long does foreclosure take in Montana?
The trustee's sale date must be at least 120 days after the notice of sale is recorded, and the mailed notice must go out at least 120 days before the sale. The sale must be held between 9 a.m. and 4 p.m. The trustee may postpone a sale by public announcement for up to 15 days; if a sale is stopped by a bankruptcy stay or court order, each postponement may be up to 30 days and all postponements together may not exceed 120 days.
Can you stop a foreclosure by catching up on payments in Montana?
Yes, for trust indentures. At any time before the time set for the trustee's sale, the borrower (or a successor, junior lienholder, or junior trust-indenture beneficiary) may pay the lender the entire amount then due, including actual costs and reasonable trustee's and attorney fees, but not the part of the principal that would not be due without the default. The foreclosure is then canceled and the loan is reinstated as if it had never been accelerated.
Is there a right of redemption after foreclosure in Montana?
It depends on the type of foreclosure. A trustee's sale of a trust indenture under the Small Tract Financing Act conveys the property without any right of redemption. For court-ordered (judicial) sales and power-of-sale mortgages other than trust indentures, the redemption rules for execution sales apply: the debtor or a junior lienholder may redeem within 1 year after the sale by paying the purchase price with interest, plus taxes, assessments, and reasonable repair and maintenance costs the buyer paid. During the redemption period, a buyer at a mortgage foreclosure is not entitled to possession against a debtor who personally lives in the home with family.
Can the lender come after you for the rest of the loan after foreclosure in Montana?
Not allowed after a trustee's sale: when a trust indenture is foreclosed by advertisement and sale, no deficiency judgment may be entered against the borrower, a guarantor, or anyone else obligated on the debt. A deficiency judgment is also not allowed when a seller-financed purchase-price mortgage is foreclosed.
Can an HOA foreclose on your home in Montana?
Yes, for condominiums. A condo owners' association that records a verified claim has a lien on the unit for unpaid common expenses. The lien is ahead of other liens except tax and assessment liens and a recorded first mortgage or trust indenture. It is foreclosed through court proceedings that follow the construction-lien foreclosure procedure, and the association may instead sue for a money judgment without foreclosing.
How do you get your home back after a tax sale in Montana?
A property tax lien may be redeemed by the owner, the occupant, a holder of an unrecorded interest, or any interested party (such as a mortgage lender or lienholder with a recorded interest) up to the first working day in August, 3 years after the tax lien attached. For certain vacant subdivided lots with delinquent special improvement district assessments, the deadline is the first working day in August, 2 years after the lien attached.
Where can homeowners get free foreclosure help in Montana?
Montana Housing (Montana Board of Housing, in the Department of Commerce) is the state housing finance agency. For borrowers with Montana Board of Housing loans, its Loss Mitigation Specialists can discuss options such as forbearance or repayment plans, loan modification, pre-foreclosure sale, and deed in lieu of foreclosure, and can connect borrowers with a list of HUD-approved housing counseling agencies. It warns that it never calls borrowers asking for personal or loan information.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.