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Grounds for Wrongful Foreclosure

In Missouri, the grounds for wrongful foreclosure are limited. Most foreclosures occur outside of the court system through a deed of trust. A foreclosure of a deed of trust is not wrongful when there is a clear right to foreclose under the underlying promissory note and/or deed of trust. Loeb v Dowling, 162 S.W.2d 875, 877 (Mo. 1942). 

To prevail on a wrongful foreclosure claim, one must prove that there was either (1) no default giving rise to a right to foreclose or that (2) there was improper execution of a rightful foreclosure. Only in situation (1) may a party generally obtain money damages for the wrongful foreclosure. The usual remedy in situation (2) is that the foreclosure is set aside and voided. It is typically impermissible to obtain both money damages and a set aside of the foreclosure deed. There needs to be a choice between remedies.