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Mississippi Foreclosure law
The Mississippi foreclosure laws state that lenders may foreclose on defaulted mortgages or deeds of trust. This means that they can use either a judicial or non-judicial foreclosure process depending upon the wording in the original contract. The foreclosure process in Mississippi usually takes 2 to 3 months.Judicial Foreclosure
The Judicial Foreclosure process is used when the mortgage or deed of trust does not include a Power of Sale clause. In a judicial foreclosure, the lender files a lawsuit and obtains a court order allowing them to foreclose on the property. The court must reside in the same county as the property that is being foreclosed upon. Once the foreclosure is granted an auction will be announced and the home will be sold to the highest bidder.
Non-Judicial Foreclosure
If the mortgage or deed of trust contains a Power of Sale the lender may foreclose without going to court. The right to sell the property may be practiced by a trustee, or a representative of the lender. Typically, the process will follow the Power of Sale which will include the date, time, place and procedure of the auction process.
If these details aren't mentioned in the clause the foreclosure will proceed as follows:
First, the lender or trustee records a Notice of Sale in the county office where the borrower's home is located. The company is them given 5 days to send a copy of the notice of sale by certified mail to the borrower and any other parties involved. The notice is also published in a county newspaper at lease once a week for 4 consecutive weeks. The last notice should be published at least 10 days before the sale date.
Provided it doesn't disturb the peace, lenders can also post the notice on the property and the courthouse where the sale date is scheduled. The has to be done at least 20 days ahead of the specified auction date.
The lender can then sell the home for cash to the highest bidder, or set a "credit bid" wherein part or all of the money owed is canceled. Once the sale is confirmed, the buyer must make the payment by 5 pm of the same day, except on Saturdays and legal holidays. Otherwise, the lender can extend the deadline or postpone the sale. If they choose the latter, they have to post a notice specifying the new date at the venue of the last auction. The proceeds of the sale will be used to pay off the obligations of the loan, and distributed among the junior lien holders.
Right of Redemption and Deficiency Claims
The Right of Redemption is a time frame, typically 12 months, after the foreclosure sale during which the borrower can buy back the home. This usually means paying the final sale price, plus interest and attorney's fees.
The lender can also file a deficiency suit, a personal claim against the borrower for the balance not covered by the foreclosure sale. However, they can only sue for the exact difference between the sale price and the balance on the original mortgage.