Montana Process

 

Foreclosure Facts

Montana foreclosures may be conducted in judicially or non-judicially, depending on the existence of a power-of-sale clause in the mortgage or deed of trust. The Montana foreclosure process typically takes about 5-6 months. Concerning judicial foreclosures, the court determines the appropriate amount due to the lender and gives the borrower a certain amount of time in which to satisfy all debt. If the borrower does not pay the debt, the lender issues a notice of foreclosure sale.

A non-judicial foreclosure, which is most common in Montana, occurs when the terms of the mortgage or deed of trust allow the lender to sell the property if the borrower defaults (power of sale clause). The lender begins the foreclosure process by filing a notice of sale with the county recorder. The sale must be at least 120 days after this notice is filed, however the lender is not required to send a default notice to the borrower before filing the notice of sale unless required in the mortgage or deed of trust.

At any time before the foreclosure sale, the borrower may pay the full default amount plus expenses and attorneys’ fees incurred, thereby satisfying the debt and stopping foreclosure proceedings.

Notice of Sale / Auction

For non-judicial foreclosures, a copy of the notice of sale is posted at the property at least 20 days before the sale, mailed to the borrower at least 120 days prior to the sale, and published in a local newspaper once a week for three consecutive weeks.

Foreclosure sales in Montana are public auctions, completed between 9 a.m. and 4 p.m. at the county courthouse, with the property going to the highest bidder. The winning bidder receives a deed transferring ownership and is able to take possession of the property 10 days after the auction.

The borrower possesses no rights of redemption following the sale and the lender may not seek to obtain a deficiency judgment against the borrower.