Going through a foreclosure in St Louis can be a very stressful and painful process especially if you have no idea what to do about it and how to stop it. But before you can understand how to stop a pending foreclosure you must understand how the foreclosure process works in Missouri.
How a Foreclosure Does It Work?
Missouri utilizes the non-judicial method of foreclosing on a property. What is a non-judicial foreclosure you ask? A non-judicial foreclosure does not involve the courts but it does require a notice as to when they are going to foreclosure. When you first signed the loan agreement for your mortgage, one of the things you signed is the deed of trust. The deed of trust gives the lender the right to foreclose on the property if a default of payments were to occur. One of the items in the deed of trust is what’s known as the power of sale clause.
The power of sale clause allows the lender to sell the property in order to satisfy the remaining debt on the property. The sale usually happens in the form of an auction. Because Missouri is a non-judicial state there are very strict rules about notice requirements and legal documents are required to contain the power of sale language in order to execute this type of foreclosure method.
Mandatory Items For The Power of Sale Notice
1. There must be a notice in the local newspaper publication at least twenty times continuously every day leading up to the day of the auction in a city of 50,000 people or more. In other parts of the state the notice must run 4 consecutive weeks no earlier than a week before the auction. Notice requirements are reference in Missouri Revised Statutes Chapter 443.320.
2. The lender must give you notice 20 days notice before the auction takes place. They must notify you of the date, time and location the auction will take place. Sale requirements are referenced in Missouri Revised Statutes, Chapter 443.227.
How To Stop The Foreclosure From Happening
Now that you have a better idea of how the foreclosure process works in Missouri and more specifically in the St Louis & St Charles area you will now have an even better understanding of how to stop it. Here are the four fastest ways you can stop your pending foreclosure.
1. Refinance. Refinancing is always in your best interest if you can qualify. Make sure you apply for the refinance before you are late on your mortgage payment. Once you are 30 days late on your house payment the damage may have already been done and your credit score may have dropped too low for you to qualify.
2. Don’t List Your House Yourself. List It With a Realtor. Too many times I see homeowners who are on the verge of losing their home try and list the property themselves. If you decide to list your house make sure you hire a professional agent. Agents will get your house sold 50% faster and often times within 90% of your asking price. Make sure you have enough equity in the house to be able to pay your agent. Remember, agents are NOT free.
3. Sell Your House Fast With An Investor. You’ve seen them all over town the “We Buy Houses” guys. Be careful with some of these people though. They advertise that they have cash and often times will make offers on a property and never close. Make sure they give you a deposit up front and set a fast closing date. If they are stalling on the closing date, then they probably don’t have cash to buy. Be careful!
We on the other hand have cash to close on your property in five days. We are experienced home buyers who will give you a CASH OFFER in 24 hours. We can close on your timeline and will often times pay the closing costs.
4. Short Sale. This has become a very popular exit strategy the last couple of years for hundreds of thousands of homeowners across the country. To keep it simple a short sale is when the bank will let the homeowner sell the property for less than what’s owed on the property. This can be a very lengthy process but nonetheless once the short sale process has started it will immediately freeze the foreclosure process. You may be wondering how to get a short sale started.
1. Homeowner is 120 days late on payments
2. Bank notifies homeowner of auction – 20 days before sale date
3. House is sold at auction and if property doesn’t sell…
4. Bank takes back property and will list with an REO broker
How to Stop Foreclosure
2. List With Professional Broker
3. Sell To Investor
4. Short Sale