A couple of years ago I bought a home in Missouri by taking out a mortgage with an adjustable rate. The payments were affordable at first, but six months ago they increased. I fell behind and my house is being foreclosed. I read on the Internet something about “redeeming” the home, which I believe means I can get the house back after the foreclosure sale. How does this work?
Under Missouri law, foreclosed homeowners get one year to repurchase or “redeem” the home after a nonjudicial foreclosure sale, but only under certain circumstances and you must do specific things, such as giving notice that you plan to redeem before the sale even takes place. (This is discussed in more detail below.)
Nonjudicial foreclosure is the most common method of foreclosure in Missouri. (This means the foreclosure takes place without court supervision.)
You have one year after a nonjudicial foreclosure sale to redeem your home, but only if the foreclosing lender is the purchaser. If a third party buys the home at the sale, you don’t get a right of redemption. (Learn more general information about the right of redemption.)
If you intend to redeem the home, you must:
To redeem, you would have to find another source of financing and then pay the full amount of the debt, plus certain additional amounts such as:
Even though you may get the chance to redeem your home after a nonjudicial foreclosure in Missouri, in most cases, it is better to take action before the foreclosure sale if you want to stay in your home. This will give you more options to save the property. For example, you could:
Nonjudicial foreclosures in Missouri generally do not take long to complete (typically only a few months) so be sure to explore alternatives to foreclosure as early in the process as possible. (To learn more about foreclosure laws and procedures in Missouri, visit Nolo’s Missouri Foreclosure Law Center.)
To locate the statutes that discuss your right to redeem the home in Missouri, go to Chapter 443 of the Missouri Revised Statutes.