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Mississippi Judicial Foreclosure Available: Yes Non-judicial Foreclosure Available: Yes Mississippi offers two methods of foreclosure: by
filing lawsuit asking for foreclosure in a Chancery Court and by sale, if
authorized in the mortgage and conducted in compliance with Mississippi's
statutes. The borrower's right to properly conduct of the sale, after proper
notice and advertisement of the sale, may not be waived in the loan
documents. Any defect in the sale that would cause it to be void may not be
corrected by the statute of limitations until ten years have passed from the
date of the defective sale. If the deed of trust contains an authorization for
the lender to call upon a trustee to sell the real estate due to the
borrower's default on the loan, such as by non-payment then the real estate
may be sold by the trustee named in the deed of trust (or later appointed as
a substitute) to try and pay off the loan. No sale by a substitute trustee is
valid unless it was first recorded in the Office of the Chancery clerk of the
county where the land is located, prior to the first posting or publishing of
the foreclosure sale notice. If the lender, instead of some other buyer,
acquires title to the real estate at foreclosure, then the lender will give
credit for the foreclosure sale price against what was due on the loan. Preliminary Notices Advertising In order to be valid, the foreclosure sale must be
advertised for three consecutive weeks before the sale in a newspaper of
general circulation in the county in which the land is located. Posting In addition, one notice must be posted for the same
time at the county courthouse door. The notice must name the borrowers who
will lose title. Cure Procedure The borrower may stop the foreclosure at any time
prior to the sale by coming up with the missed payments, accrued costs and
attorney's and trustee's fees. Only the amount that is actually past due
needs to be paid. Even though the loan documents provided that the lender
could accelerate the loan and make all future payments due, the borrower has
the legal right to disregard the acceleration and stop the foreclosure by
paying up the missed payments, accrued costs and attorney's and trustee's
fees. The loan is then to be treated as though it was not accelerated. The
borrower may continue to own and occupy the property and the lender may not
foreclose. Sale Procedures Place The place of sale should be the same as the place
of sale for sheriff's sales of property in the county, which is usually the
courthouse. Manner The sale must be made by public outcry in the
county where the land is located, or in the county where the borrower lives.
The sale must be for cash to the highest bidder. Post-Sale Matters After the sale, the trustee or substitute trustee
must deliver a trustee's deed to the successful high bidder. The deed should
give the names specified in the old deed of trust that was foreclosed on. The
trustee's deed should also give information sufficient to locate the
foreclosed deed of trust or mortgage in the deed records. Special Procedures - Foreclosure and Major
Disasters In Mississippi, the governor may declare that a
natural disaster, an enemy attack, or a man-made technological disaster makes
it imperative to impose a moratorium on foreclosures. The moratorium may last
for up to two years after the governor's declaration. The borrower can go to
court and file a lawsuit to enjoin a lender from foreclosing. This would be
due to damages to the mortgaged premises or because of economic conditions
brought about by enemy attack, natural disaster or man-made technological
disaster causing the fair market value of the property to decline by 15
percent, if refinancing is impractical under the circumstances. No cash is
required on the injunction. The borrower must take action because a
foreclosure conducted during a moratorium while the borrower did nothing is
valid, even though the borrower could have won by exercising these rights. Redemption A foreclosure sale under a deed of trust is final
in Mississippi. There is no right of redemption. |
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