Montana Foreclosure Law Summary
Stop Montana Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 150 days
- Right of Redemption: No
- Deficiency Judgments Allowed: Varies
In Montana, lenders may foreclose on deeds of trusts or mortgages
in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
In judicial foreclosure, a court decrees the amount of the borrowers
debt and gives him or her a short time to pay. If the borrower fails to pay within
that time, then the court will issue a notice of sale.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of
sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the
clause in a deed of trust or mortgage, in which the borrower pre-authorizes the
sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or their representative,
typically referred to as the trustee. Regulations for this type of foreclosure process
are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause
and specifies the time, place and terms of sale, then the specified procedure must
be followed. Otherwise, the non-judicial power of sale foreclosure is carried out
as follows:
A notice of sale must be recorded in the county where the property
is located and then: 1) mailed, by registered or certified mail, to the borrower
at his last known address at least 120 days before the foreclosure sale; 2) published
once a week for three (3) successive weeks in a newspaper of general circulation
in the county where the property is located; and 3) posted on the property at least
twenty (20) days before the foreclosure sale.
The notice must contain the time, date and place of sale, the
borrowers, lenders and trustees name, a description of both the property and the
default, and the book and page where the deed is recorded.
The trustee must conduct the sale between the hours of 9:00 am
and 4:00 pm at the courthouse in the county where the property is located. The property
must be sold at public auction to the highest bidder.
The sale may be postponed for up to fifteen (15) days by posting
a notice at the time and place where the sale was originally scheduled.
Lenders may not obtain a deficiency judgment against the borrower
and the borrower has no rights of redemption.
More information
on Montana foreclosure laws.
|
