Table of Contents

• Q: How will I know if I am at risk for a foreclosure?
• Q: Who owns my mortgage loan?
• Q: Missouri law generally allows for nonjudicial foreclosure. What is a “nonjudicial foreclosure”?
• Q: How do I demand information about my mortgage loan?
• Q: Where can I get help?

How will I know if I am at risk for a foreclosure?

The first document generally sent to homeowners in Missouri is a “Notice of Default”. This document identifies the claimed default and contains a demand for full payment of the entire balance of the mortgage loan. Frequently, the homeowner is given 30 days to pay the full loan amount or foreclosure proceedings will begin. If a homeowner has concerns regarding whether a default on their mortgage loan has actually occurred or how much is actually due, it is important to demand the servicer's records regarding this information as soon as possible. It is highly advisable to seek good legal counsel.

The second document is a “Notice of Sale”. This written notice must be sent to homeowners by certified or registered mail no less than 20 days prior to the foreclosure sale date. The notice must identify the date, time, and location of the foreclosure sale. In addition, advertisement of the foreclosure sale must appear in a local newspaper numerous times before the foreclosure sale date. Homeowners having trouble with their mortgage payment should pay attention to foreclosure listings in their local newspapers to stay fully informed.

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Who owns my mortgage loan?

In most instances, the party you dealt with in obtaining your mortgage loan is not the party that claims to now own your loan. This is because most mortgage loans are often sold to other investors or government owned entities Fannie Mae and Freddie Mac. The company that sends out mortgage bills and collects payments is called a “servicer” and is generally not the loan owner. Servicers are usually large banks such as Bank of America, Wells Fargo, Citibank, and JP Morgan Chase. Homeowners have the right to obtain important information from servicers and loan owners that may indicate foreclosure attempts are wrongful. However, homeowners must act quickly to exercise their rights to obtain this information.

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Missouri law generally allows for nonjudicial foreclosure. What is a “nonjudicial foreclosure”?

State laws govern how foreclosures may proceed. Missouri law generally allows foreclosures to occur without a court case being filed by the party seeking to foreclose. This is called a “nonjudicial foreclosure”. However, if adequate grounds are met, homeowners may file a court case to stop a wrongful foreclosure attempt. Seeking good legal advice is critical in this regard.

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How do I demand information about my mortgage loan?

It has become clear that, in many instances, accurate mortgage loan records have not been kept regarding important information such as loan ownership, payment history, and fees charged to homeowners. These inaccuracies may cause wrongful foreclosure attempts. Homeowners should know who to contact and what to demand in order to call out any errors by the servicer or loan owner.

As of May 20, 2009, federal law requires that a notice be automatically sent to homeowners when a change in ownership of their mortgage loan has occurred. This notice must include the contact information of any party who has authority to act in regard to the mortgage, such as making loan modifications or correcting errors. Federal law also requires loan servicers to respond to qualified written requests from homeowners and provide: contact information for the owner and master servicer of a mortgage loan; an accurate statement of the full amount due under the loan terms; and a complete accounting of the loan history, including all fees or other charges imposed on the homeowner and how payments have been applied. These requirements are stated in the federal Truth in Lending Act and Real Estate Settlement Procedures Act. Loan histories are complicated documents that are difficult to understand and frequently contain errors that call into question whether a foreclosure is proper. It is very important that homeowners obtain good legal advice in gathering and reviewing this information in order to correct any errors, stop wrongful foreclosure attempts, and/or engage in meaningful modification negotiations.

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Where can I get help?

Homeowners who are trying to stop foreclosure, remedy excessive fee charges, or modify their mortgage loan should immediately seek competent legal counsel and/or the assistance of a certified housing counselor. There are many government certified housing counselors who are skilled in assisting homeowners facing foreclosure and provide their services at no charge. A list of approved counselors in Missouri may be found at HUD. These counselors are not lawyers. Homeowners may also find referrals for a competent foreclosure attorney from the National Association of Consumer Advocates or the Missouri Bar.

Homeowners who feel they have been subjected to fraudulent, unfair or deceptive actions by lenders, loan owners, or loan servicers should contact the Consumer Protection Division of the Missouri Attorney General's Office or 1-800-392-8222.

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