Summary of Montana's Foreclosure Laws

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If you are facing foreclosure in Montana, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Montana
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Montana foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under power of sale in deed of trust

Time to respond

Under the Small Tract Financing Act, foreclosing party must mail a notice before sale to the borrower at least 120 days before the sale. Notice of sale must also be posted on the property 20 days before sale and published in a newspaper prior to the sale.

Reinstatement of loan before sale

The default can be cured and the loan reinstated at any time prior to sale (so long as the property is not more than 40 acres).

Redemption after sale

No right of redemption for foreclosures under the Small Tract Financing Act; otherwise available within one year after sale.

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

Court may stay proceedings related to a service member’s nonpayment on a mortgage for their primary residence or adjust the payment due. Mont. Code Ann. § 10-1-903. Applicable to any member of the Montana army or air national guard serving on active duty at least 14 consecutive days of full-time state active duty ordered by the governor or full-time national guard duty. Mont. Code Ann. § 10-1-901.

Deficiency judgments

Not allowed under the Small Tract Financing Act

Cash exempted in bankruptcy

None

Notice to leave after house is sold

Former owner may stay during one-year redemption period. Under Small Tract Financing Act, the purchaser at the trustee's sale is entitled to possession of the property on the 10th day following the sale.

Foreclosure statutes

Mont. Code Ann. §§ 71-1-221 to 71-1-235 and §§ 71-1-301 to 71-1-321

Updated by: , Contributing Editor

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