If you are a homeowner in Missouri worried about foreclosure, you should know that you’re not alone. Whether you are at risk of losing your home or are being threatened with foreclosure in Missouri, it can be overwhelming to know where to turn.
In this blog post, we will explain the Missouri foreclosure process and your options if you find yourself facing foreclosure. Additionally, we’ll share foreclosure prevention tips.
To learn more about the foreclosure process, whether you’re facing foreclosure for the first time or curious about what it looks like, keep reading.
What is a Foreclosure, and How Does it Work in Missouri?
A foreclosure occurs when a lender seizes and sells a home or property after a borrower cannot repay their loan. In Missouri, properties that are past due 120 days can be foreclosed.
How to Avoid Foreclosure
If you are experiencing financial difficulties, you may still be able to avoid foreclosure.
Strike a Deal With Your Lender
Talk to your lender about a payment plan. It may be necessary to extend the repayment period with smaller payments.
Request a Loan Modification
If you are having difficulty making your current mortgage payments, you might be able to get a modification. A loan’s terms, such as interest rate and repayment period, may be modified.
Sell Your Home
It might be a good idea to sell your home if you are experiencing financial difficulties. This may not be an easy decision, but it might be one of the most effective ways to avoid foreclosure.
How to Stop or Delay Foreclosure
If you’re already in foreclosure, there are three ways you can slow down or halt the process.
Reinstate the Loan
Although Missouri law does not include a statute about loan reinstatements, mortgage contracts often do. Check your mortgage to see if you are eligible for complete reinstatement and when you should do so. It might also be possible to bring the account current if the lender allows it.
Redeem the Property
Another way to stop foreclosure is to redeem the property. To redeem a loan, the full amount must be repaid before the foreclosure sale. In Missouri, you have one year after the foreclosure sale to redeem your home if the lender purchases it. In the event that a third party purchases the home at the sale, you do not have the right to redeem it. If you intend to redeem the property in Missouri, you must give written notice to the seller ten days before the sale and provide a bond.
File for Bankruptcy
Bankruptcy may not be the best solution, but it can prevent foreclosure. Filing for Chapter 7 bankruptcy can delay the foreclosure process by several months. You might also be able to save your home by filing for Chapter 13 bankruptcy. To learn about your options, contact a local bankruptcy attorney.
What to Do if Foreclosure is Imminent
In the event of a foreclosure, it is advisable to seek legal advice from a qualified professional. Understanding your rights and options is essential to achieving the best possible outcome for you and your family.
The Process of Foreclosure in Missouri
If you default on your mortgage payments in Missouri, the lender may foreclose using a judicial or nonjudicial method.
A judicial foreclosure occurs when a lender files a lawsuit asking a court to authorize a foreclosure sale. In the absence of a written answer, the lender automatically wins the case. In the event that you choose to defend the foreclosure lawsuit, the court will review the evidence and determine who will win. Your home will be auctioned if the lender wins a judgment against you.
Nonjudicial foreclosures must be completed according to state statutes if the lender chooses this option. In a foreclosure sale, the lender can sell the home after completing the required steps.
The lender must comply with the following:
- The borrower should be notified by mail 20 days in advance of the foreclosure sale.
- A newspaper notice should be published 20 times or for four consecutive issues or weeks, depending on the circumstances.
Nonjudicial processes are more economical and quicker than judicial ones, which is why most lenders opt to use them.
The Repercussions of Foreclosure
Foreclosure can have severe ramifications for homeowners and their communities. In the foreclosure process, homeowners can lose their homes and damage their credit scores. This can make it difficult to get a new home or apply for credit. Additionally, foreclosure is time-consuming and emotionally draining.
Foreclosures can also negatively affect communities. As a result of foreclosures, property values can decline, resulting in a decline in tax revenue, as well as an increase in crime.
Assistance for Homeowners Facing Foreclosure in Missouri
The U.S. Department of Housing and Urban Development provides foreclosure prevention assistance and counseling to homeowners.
The Missouri State Assistance For Housing Relief (SAFHR) program promotes homeownership and housing stability by preventing foreclosures and displacements through the U.S. Treasury’s Homeowner Assistance Fund (HAF).
Avoid Foreclosure in Missouri by Selling Your House for Cash to Favor Home Solutions
If you’re facing foreclosure or are having trouble keeping up with your mortgage payments, selling your home might be the solution you’ve been waiting for. At Favor Home Solutions, we understand how difficult this time can be. For this reason, we are committed to helping you get the best price for your home and guiding you through the entire process.
To accomplish this, our team will:
- Evaluate your situation and make you a fair, all-cash offer
- Close on the date of your choice
- Take care of all the paperwork
- Pay all the closing costs
- Handle cleaning and repairs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!