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.
|Common type of foreclosure process||Foreclosing party can choose nonjudicial under power of sale in deed of trust, or judicial if a law called the Small Tract Financing Act applies, foreclosure must be nonjudicial. The Act may apply if homeowner executed an agreement called a trust indenture to get a loan to buy property of less than 40 acres.|
|Time to respond||Foreclosing party must give homeowner a 30-day notice before sale, or a 120-day notice if foreclosure is under Small Tract Financing Act.|
|Reinstatement of loan before sale||No provision for reinstatement in regular foreclosure. If foreclosure is under Small Tract Financing Act, allowed any time before sale|
|Redemption after sale||Available within one year after sale unless foreclosure is under Small Tract Financing Act—in that case, redemption is not available.|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Mont. Code. Ann. § 10-1-903|
|Deficiency judgments||Only if the foreclosure is judicial|
|Cash exempted in bankruptcy||None|
|Notice to leave after house is sold||Former owner may stay for one-year redemption period if it’s available. If foreclosure is under Small Tract Financing Act, new owner is entitled to possession 10 days after sale, but must give former owner a 30-day notice to quit (leave) before filing an eviction lawsuit.|
|Foreclosure statutes||Mont. Code Ann. §§ 71-1-221 to 71-1-235 and §§ 71-1-301 to 71-1-321|