Redemption and Deficiency Judgments in Montana
Whether you can buy back your home after a foreclosure sale in Montana, and whether the lender can sue for what's still owed.
Short answer: 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
| 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. 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. |
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| 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. 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. |
More Montana foreclosure & homeowner law
- How Foreclosure Works in Montana
- HOA Liens and Foreclosure in Montana
- Getting Your Home Back After a Tax Sale in Montana
- All Montana foreclosure & homeowner law rules
FAQ
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.
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.