Montana Foreclosure Process and Laws
Quick Facts About the Foreclosure Process in Montana
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
Lenders may foreclose mortgages and deeds of trust in Montana by the judicial and the non-judicial foreclosure process.
Judicial foreclosure is when the court declares the debt then gives an estimated time to pay. If after the given time, no payment has been done, the court will give a notice of sale.
The power of sale clause is important in the non-judicial process. This gives the lender the authority of sell the property if there is deliquency in the payment to pay off the balance. The lender or even the trustee can initiate the foreclosure sale. The process of the non-judicial foreclosure is indicated in the Power of Sale Foreclosure Guidelines.
Power of Sale Foreclosure Guidelines
If the power of sale clause does not state the details of sale such as the time, date and the place, there is a procedure that must be followed. The notice os sale is very important since it contains all the information on the property such as the description, records, borrowers, lenders, trustees, date, time and place of sale.
- Filing of the notice of sale in the county where the property is must be done.
- Borrower must receive via mail the notice of sale 120 days prior to the forclosure sale.
- Notice must be publidhes once a week for 3 weeks in a public newspaper in the county or registration.
- Notice must be posted on the property 20 days before foreclosure sale.
- Should there be any changes in the schedule, it is allowed at a maximum of 15 days given that there is a notice posted on the property.
- Sale must be done by the trustee within 9:00 am to 4:00 pm in the county courthouse.
- The highest bidder walks off with the property as the new owner.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
Helena Field Office
Department of Housing and Urban Development
100 Neill Avenue
Suite 5, #27
Helena, MT 59601
Phone: (406) 449-5050
Fax: (406) 449-5052
TTY: (406) 449-5050
Jurisdiction: State of Montana
Acting Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday