Missouri May Show The Rest Of The Country How To Recover From The Foreclosure Debacle

How is one state addressing the current real estate foreclosure situation? Missouri like so many other states during 2006 experienced a dramatic rise in the total number of properties involved in some stage of foreclosure, yet the "show me" state isn't sitting idly by and allowing any moss to grow on their feet.
 
Since last year Missouri saw its foreclosure rates increase to almost 240%. During January and February of this year alone the total number of foreclosures skyrocketed from 1,753 homes to 5,966 compared to the same time frame as last year. All counties across the state have been affected to some degree. Greene County for example reported a 124% increase in foreclosures in April 2007.

Contrary to the lack of response seen in other states, officials at the local government level in Missouri are taking some positive actions, albeit against almost overwhelming obstacles, to stop the foreclosure's in Missouri, or at the very least look for ways to slow the growth and work towards a long term solution geared to preventing a reoccurrence of this magnitude. To their credit the state government has established a help center for residents trying to avoid foreclosure in Missouri. Known as the Missouri Homeownership Preservation Network it looks to help homeowners facing foreclosure find a solution to cure the default on their mortgage.

Understanding Missouri Foreclosure Laws

Missouri primarily operates as a title theory state where the property title remains in trust until payment in full occurs for the underlying loan. Missouri law also permits mortgages to serve as liens upon real property and for judicial foreclosures to occur through the courts. The exact procedure used will vary, depending on the terms of the mortgage, but most Missouri mortgages require the lender to give the borrower a definite warning prior to beginning foreclosure. A typical foreclosure process in Missouri takes approximately 60 days.

Missouri has an onerous post-sale statutory right of redemption with respect to power of sale foreclosures which would allow a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs.