Foreclosure Process in Mississippi (MS)Topic: Foreclosure
Mississippi allows both judicial or in court and non-judicial or out of court foreclosure. As in all states where both types of foreclosures can be used, the determining factor as to which method the bank will use is whether or not the deed of trust or mortgage contains a power of sale clause. The power of sale clause is what permits a bank to sell a property in foreclosure without having to petition the court for permission or the legal right to do so. This of course saves the bank the time and money necessary to file the initial lawsuit against the home owner to begin the process. Because of the money and time saved by doing this out of court, it is obvious that this is the preferred method of foreclosure in any circumstance where it can be pursued. The only reason that a bank would use a judicial foreclosure is when there is no power of sale clause in the deed of trust or mortgage. In the absence of a power of sale clause, judicial foreclosure is the only option. Sometimes a power of sale clause is so specific in detail as to the directions it gives as to how the sale is to proceed, that it will actually state the date, and terms of the sale. When such language is involved in a power of sale clause, these detailed instructions must be followed. Most of the time, the power of sale clause is not so specific in its delineation of the sale process and the regular out- of court process towards the sale date will move ahead.
Judicial foreclosure begins, with the bank filing a complaint or lawsuit against the home owner who is having trouble keeping up with their house payment. The banks objective in filing this lawsuit is to obtain a decree of sale from the court. Once this court order is obtained, the bank will press forward towards the public auction of the house. From this point on, both judicial and non-judicial processes are virtually the same. The bank's Lawyer most often referred to as the trustee, will record a notice of sale with the county where the home is located. This notice of sale must include the home owner's name and the time and place and date of the scheduled trustee's sale. If the home owner can come up with all back payments, plus extra fees, costs and interest, the sale of the home can be stopped. This is a way to stop foreclosure. The home owner is allowed to use this strategy right up until the day of the scheduled sale. I personally would not want to wait any later than the day before the sale. In Mississippi, this trustee's sale or auction can be held at the usual or traditional auction location in the county where the home is located. If the home owner resides in a different county, other than the one in which the home being sold is located, then the sale may be held in the county where the home owner resides as well.
At this auction, the bidders must be prepared to pay cash for the bids they place. That is the only payment method that is accepted. After the notice of sale is recorded, it must be posted on the door of the courthouse of the county where the home is located. It must also be placed in a newspaper that has circulation in the county where the home is located. These weeks must be the three weeks immediately leading up to the scheduled sale date. When a non-judicial form of foreclosure has been followed by the bank, the former home owner is not given any right of redemption. This means that the sale of the home at the auction is final. The former home owner has no right to re-gain ownership after the sale. The time line for an uncontested out of court foreclosure from the beginning to the end in Mississippi moves pretty fast. It is typically only a sixty day process.
There are no deficiency judgments allowed in Mississippi as well. This means that if the bank is not pleased with the difference between what the sale of the home generated in terms of dollars to them and what was owed on the loan, then they cannot seek any further compensation from the person who lost their home at the trustee's or sheriff's sale.
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The new buyer will have to pay all the back taxes owed against the proterpy plus all the back payments/interest and foreclosure costs. It requires for the new buyer to pay cash for the proterpy.Generally speaking if the proterpy is worth more than owed against it, it wouldn't be be going into foreclosure.
Kudos to you! I hadn't touhhgt of that!
Never would have thunk I would find this so indipsenaslbe.
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