Mississippi State Foreclosure Law Summarized

Judicial Foreclosure in Mississippi:

It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. Once foreclosure is declared, property is auctioned off to highest bidder.

Non-Judicial Foreclosure in Mississippi:

Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under “Guidelines for power of sale foreclosure”.

Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.

Otherwise foreclosure is carried out as follows:
The trustee needs to record a notice of sale with the borrower’s name, lender’s name and date/time/place of the sale in county where property is situated. Same notice should be put up at courthouse door of the same county. It should be published once a week in local newspaper of the county for consecutive three weeks before the sale. The borrower can stop the sale at any point of time by clearing the debt plus costs & fees. The sale is conducted by trustee between 11 a.m. to 4 p.m. at the courthouse. In the case of a surplus, the additional amount is dispersed to any other affected secondary lenders.

This is legal information; it should not be treated as legal advice.