- 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.
