Quick Facts

–  Judicial Foreclosure Available: Yes

–  Non-Judicial Foreclosure Available: Yes

–  Primary Security Instruments: Deed of Trust, Mortgage

–  Timeline: Typically 150 days

–  Right of Redemption: No

–  Deficiency Judgments Allowed: Varies

In Montana, lenders may foreclose on deeds of trusts or mortgages  in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

In judicial foreclosure, a court decrees the amount of the borrowers  debt and gives him or her a short time to pay. If the borrower fails to pay within  that time, then the court will issue a notice of sale.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of  sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the  clause in a deed of trust or mortgage, in which the borrower pre-authorizes the  sale of property to pay off the balance on a loan in the event of the their default.  In deeds of trust or mortgages where a power of sale exists, the power given to  the lender to sell the property may be executed by the lender or their representative,  typically referred to as the trustee. Regulations for this type of foreclosure process  are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause  and specifies the time, place and terms of sale, then the specified procedure must  be followed. Otherwise, the non-judicial power of sale foreclosure is carried out  as follows:

A notice of sale must be recorded in the county where the property  is located and then: 1) mailed, by registered or certified mail, to the borrower  at his last known address at least 120 days before the foreclosure sale; 2) published  once a week for three (3) successive weeks in a newspaper of general circulation  in the county where the property is located; and 3) posted on the property at least  twenty (20) days before the foreclosure sale.

The notice must contain the time, date and place of sale, the  borrowers, lenders and trustees name, a description of both the property and the  default, and the book and page where the deed is recorded.

The trustee must conduct the sale between the hours of 9:00 am  and 4:00 pm at the courthouse in the county where the property is located. The property  must be sold at public auction to the highest bidder.

The sale may be postponed for up to fifteen (15) days by posting  a notice at the time and place where the sale was originally scheduled.

Lenders may not obtain a deficiency judgment against the borrower  and the borrower has no rights of redemption.

More information  on Montana foreclosure laws.

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