 Summary of a Montana Foreclosure Documents Needed to Begin Foreclosure 1. Copy of RECORDED Deed of Trust 2. Copy of Note 3. Copy of RECORDED Assignments, if applicable 4. Breakdown of Arrearage, i.e. date delinquency started, monthly payments, monthly late charges, any other costs that may have been paid, i.e. taxes, insurance, property inspections, etc. A trust deed may be foreclosed by private sale or by judicial foreclosure in Montana. Because it is more expeditious, private sale is the normal method of foreclosure. Montana prohibits the use of trust deeds for properties that exceed thirty acres in size. Generally, a mortgage, as opposed to a deed of trust, must be judicially forclosured. A private trustee's sale usually begins with the law firm being designated as trustee. Based on the foreclosure report, all interested parties are notified of the sale by: publication, posting on the property, recording in the real estate records, and mailing. The means of notice is a written notice of trustee's sale, which must also contain a statement of the reasons for the foreclosure. A trustee's foreclosure sale is held at the county courthouse. It cannot be held earlier than one hundred twenty days after the notice of sale is mailed. At any time, up to and including the day of sale, any interested party may reinstate the loan by paying all delinquent payments and all costs incurred, including attorneys fees. When the foreclosure is judicial, up to the date of sale there may be a right to reinstate. A trustee's foreclosure sale may only be continued up to fifteen days. After a trustee's sale, there is no right of redemption, except as may be provided by federal law (e.g. IRS liens). After a judicial foreclosure sale, there is a one-year redemption period. Generally, deficiencies are permitted in Montana on all mortgages other than the mortgage to a vendor for the purchase of the property and where a trust indenture (apparently, only when this title is used) is used. Although it is clear that a trustee's sale may be used if a (trust indenture) is used, there is authority that it may be used if stated in a mortgage as long as other stringent requirements are met. |
| Montana Capital – Helena The Treasure State Non-Judicial State Bar of Montana: 1884 4/90 Foreclosure *Cannot postpone more than 15 days
after the sale date. |
