- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust,
Mortgage
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: No
In Mississippi, lenders may foreclose on deeds of
trusts or mortgages in default using either a judicial or
non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which
involves filing a lawsuit to obtain a court order to foreclose, is
used when no power of sale is present in the mortgage or deed of
trust. Generally, after the court declares a foreclosure, your home
will be auctioned off to the highest bidder.
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:
- The trustee must record a notice of sale
containing, at minimum, the borrowers name and the date, time and
place of the sale in the county where the property is located.
This notice must also be posted at the courthouse door in the
county where the property is located and published in a newspaper
of general circulation in said county for a period of three (3)
consecutive weeks before the schedule date of the sale.
- The borrower may cure the default and stop the
foreclosure process at any time before the foreclosure sale by
paying the delinquent payments, plus costs and fees.
- The sale must be made at public auction for
cash to the highest bidder. The sale may be held in the county
where the property is located, or, if different, in the county
where the borrower resides. In either case, the sale must be
conducted at the normal location for sheriff's sales within the
given county. Borrowers who lose their property as the result of a
non-judicial foreclosure have no rights of redemption in
Mississippi.
More information on Mississippi foreclosure laws.
