What Is a Trustee Sale in Missouri?

Missouri uses non-judicial foreclosure, which means most foreclosures end in a trustee sale. Here's what that means for homeowners.

Missouri is primarily a non-judicial foreclosure state, which means that most foreclosures are handled outside of the court system through a process called a trustee sale. Understanding how this process works is critical for any Missouri homeowner facing foreclosure.

What Is a Trustee Sale

A trustee sale is a public auction of a foreclosed property conducted by a trustee — typically a title company or attorney — named in the deed of trust. Unlike a sheriff sale which is court-ordered, a trustee sale is conducted privately under the terms of the deed of trust.

The Missouri Trustee Sale Process

The process begins when the borrower defaults on the mortgage. The lender instructs the trustee to begin foreclosure proceedings. The trustee must publish a notice of the sale in a local newspaper for a specified number of weeks. On the sale date, the property is auctioned to the highest bidder. If no one bids above the opening bid typically the amount owed, the lender takes the property back as REO Real Estate Owned.

How Much Notice Do You Get

In Missouri, the trustee must publish the notice of sale for at least 20 days before the sale. However, the process from default to sale can happen in as little as 60 days, so homeowners should act quickly when they fall behind on payments.

How to Stop a Trustee Sale

You can stop a trustee sale by reinstating the loan paying all overdue amounts, paying off the loan in full, negotiating with the lender, filing for bankruptcy which triggers an automatic stay, or selling the property before the sale date. A fast cash sale is often the most practical option for homeowners who have equity.