Foreclosures For Sale Updated On: 03/17/10
Mississippi Foreclosure Laws
Mississippi Foreclosure Laws
Mississippi is called a title theory state wherein the title of the property stays as security till the borrower does not pay off the loan in full. A mortgage is the document which is used to secure the title of the property and usually holds information present in deeds of trust, therefore being able to function as one in the event of a non-judicial foreclosure.
Non-judicial foreclosure is the primarily used process in Mississippi foreclosures. At the initial signing of the mortgage, there is a provision to include a power of sale clause allowing the property to be foreclosed by an attorney, in case of delinquency, to take care of the loan; this, at times, is called a bond. The sheriff conducts the auctions.
Being a non-judicial recourse, some very strict requisites for notices are in place and the inclusion of a power of sale clause within the legal loan document is mandatory for this foreclosure recourse to be taken.
A notice of sale that indicates the pending foreclosure needs to be obtained and filed before the foreclosure is initiated by the attorney who is to carry out the foreclosure proceedings. A copy of the notice of foreclosure sale date then has to be published by the lender in a general circulation newspaper within the county where the property is situated, for a period of three weeks.
Foreclosure proceedings can be discontinued if the borrower makes the payment that would also cover the fees and costs in-full before the sale of foreclosure.
The lender can also bid for the property at the auction conducted by the sheriff, where the property goes to the highest bid placer. The sale generally takes place between 11:00am and 04:00pm and the sheriff can postpone the sale day-to-day.
Lenders in Mississippi can also opt for a judicial foreclosure which takes place through a court, and it is the court that pronounces the final verdict on the foreclosure. The property then sells at a sale that has been publicly notified. A complaint, with a lis pendens (a legal document which is used to issue a notice to the public about the property that is going to be foreclosed on) needs to be filed in the court.
The legal documents are referred to as mortgage, and in cases of commercial transactions, a security agreement. The security agreement is, on occasion, merged with the mortgage. A mortgage needs to be filed to authenticate the loan in question and its repayment terms, which find a mention in the note.
It normally takes around 60 to 90 days to bring into effect a non-judicial foreclosure that is not contested; this does depend on the time required for different notices. If the action is contested by the borrower and if a delay or an adjournment of the sale is sought, or if bankruptcy is filed for by the borrower, the process can be stalled.
A statutory right of redemption can be made use of in Mississippi wherein a borrower can pay the amount left on the loan and the costs, and then lay claim on the foreclosed property, within a period of six months from the sale.
If a foreclosure property sells for lesser than the amount secured by the mortgage at the public sale, a lender can obtain a deficiency judgment.
Foreclosures in Mississippi are governed by laws present in two different sections. Title 11 (Civil Practice and Procedure) §11-5-93 et. seq. (Sales of Realty under Decrees) covers sales of foreclosures. Various rights of redemption and actions’ limitations are included in §15-1-19 and §15-1-21.
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