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Missouri The Process Missouri permits two types of foreclosure: Judicial, and Judicial under a power of sale clause. In judicial foreclosure the lender may file a
petition in the office of the circuit court against the borrower and the
tenants or occupiers or property. The petition states the nature of the
mortgage and formally requests the court to render judgment for amount of the
debt, to foreclose the equity of redemption (preventing the borrower from
recovering the property by paying the mortgage) and to order the property
sold to satisfy the amount due. Such a lawsuit will be handled in the same
manner as other civil lawsuits. The borrower may be served in person or by
constructive notice through publication if personal service efforts prove to
be fruitless. Power of Sale Foreclosures Missouri permits foreclosure under a power of sale
clause in a mortgage. Before proceeding with a foreclosure sale under the
power of sale clause, the lender must give the borrower 20 days notice of the
sale, whether or not the mortgage or deed of trust provides for such notice.
The property must be advertised for sale as follows: In counties with over 50,000 inhabitants, the
notice foreclosure sale must be published at least twenty times in the daily
newspaper and continued to the day of sale. In counties with under 50,000 inhabitants, the
notice foreclosure must be published once per week on the same day each week
in a daily, tri-weekly, or semi-weekly newspaper for four successive issues,
with the last publication to be not more than one week prior to the
foreclosure sale. An affidavit of the printer or publisher may serve
as evidence of publication. Mailing of the Foreclosure Notice The trustee who conducts the foreclosure sale must
mail notice of the foreclosure sale not less than 20 days prior to the
scheduled date of the sale to the following parties: The borrower named in the deed of trust or
mortgage at the last known address for the borrower. The person shown by the office of the recorder's
deed of records to be the owner of the property as of 40 days before the
foreclosure sale, to the last known address shown in the lender's records for
such recorded owner. Any person whose name and address is set forth in,
request for notice that has been duly recorded 40 days in advance of the
foreclosure sale date The notice must be in the following format: In accordance with R. S. MO 443.325, request is
hereby made that notice of sale under the deed of trust (or mortgage)
recorded the ___ day of ____ 19__, (as recorder's number ____ or in Book
___,.) of the records of County, Missouri, the legal description of the
property being __ in ____ County, Missouri, executed by ____ as Grantor (or
Mortgagor) in which______________ is named as beneficiary (or Mortgagee)
and____________ as Trustee, be mailed to ___ (Name) at
_______________(Address) _____. (City) _____, (State). (Signature) _______________________ _______________________ (Acknowledgment) Receipt of Foreclosure: Notice Not Necessary The borrower does not have to receive the envelope
containing the notice of foreclosure pursuant to a deed of trust or mortgage.
Recording of the receipt issued by the U.S. Post Office for certified or
registered mail to evidence that the envelope has been delivered by the
sender to the U.S. Post Office shall constitute proof of compliance with the
notice requirements. Trustees The person named in the deed of trust or mortgage
must conduct the foreclosure sale. However, if the trustee is dead, neglects
this duty or is incapacitated, a new trustee can be appointed if the lender
files a motion in court requesting a new trustee, and the court feels the
circumstances justify an appointment, in which case the sheriff or another
suitable person approved by the Judge can conduct the sale. A foreign
corporation may not be a trustee for foreclosure in the state of Missouri,
unless a co-trustee who is a resident of Missouri is named. Certain nearby
states can authorize a Missouri corporation to act in a fiduciary capacity
for an outside corporation. A trustee may collect a 2 percent commission on
the first $1,000,1 percent on sums over that amount but under $5,000, and 0.5
percent on sums over that amount. Sale Procedures The trustee must conduct the sale in a fair manner
at the time and place and in the manner specified in the notice of
foreclosure, the deed of trust and the statute. The property is to be called
out for sale and sold to the highest bidder. The lender may purchase at the
sale, but if it does so, a right of redemption applies. Redemption If any person other than the lender, or someone
purchasing on behalf of the lender, buys the property at a fairly and
properly conducted foreclosure sale, then no right of redemption exists. If,
on the other hand, the lender buys at the foreclosure sale, as is so often
the case, then the borrower has a right to redeem the property for one year
from the date of sale. In order to obtain the right of redemption,
however, the borrower must meet many requirements. First, the borrower must
give the trustee or other person conducting the sale advance notice, ten days
prior to the sale, of the borrower's intent to redeem. Second, the borrower
must arrange a bond on which there is one good surety, besides the borrower,
who can stand good for a sum of money equal to the interest that would accrue
throughout the year on the mortgage, and on any prior lien loan, together
with the foreclosure costs, taxes and assessments, and furthermore, a sum
equal to 6 percent of all the sums bid by the successful bidder at the
foreclosure sale, whether they were advanced in cash or not. The bond must be
sufficient to cover any waste or damages inflicted on the property by the
borrower. The bond must be in place 20 days after the sale, or else the
borrower has no right to redeem |
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