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…
Legal Articles
Contracts for Deed: Missouri Real Estate Conveyances, Seller Financing
The conventional way real estate financing occurs is when the purchaser applies for a mortgage with a bank/financial institution. The bank/financial institution approves the transaction and wires the money to the title company, who in turn tenders the money to the seller. The purchaser will then execute a promissory note promising to pay back the…
Wrongful Foreclosure, Deed Set Aside: Real Estate
Missouri foreclosures typically occur outside of Court because property is conveyed through a deed of trust, rather than a mortgage. Although “mortgage” and “deed of trust” are often used interchangeably, there is a distinction. Specifically, under a deed of trust, a trustee holds legal title to the property while the borrowers hold equitable title to…
Statutory & Equitable Redemption for Deeds of Trust, Foreclosures
Redemption refers to the ability of a mortgagor to stop a foreclosure after a default. Missouri almost uniformly uses a deed of trust arrangement to handle real estate financing. Under this arrangement, a trustee holds legal title title to the property while equitable title remains with the borrower/mortgagor — i.e., the person(s) generally living on…
Deeds of Trust
There are three basic documents in a sale of land: the contract for sale, the deed, and (if needed) a mortgage. A mortgage is a debt instrument which “secures” a debt; in Missouri, the mortgage is almost always in the from of a deed of trust. Essentially, the deed of trust is a type of…