How foreclosure works in Mississippi

The notices you will receive in Mississippi, in order

1. Default letter from your servicer

   After you fall behind, on the schedule in your deed of trust

   Mississippi law does not set the wording or timing of this letter, but your deed of trust may require it. It usually says how much you need to pay to catch up and by when. Keep it, and ask your servicer in writing about help options right away.

2. Substitution of trustee

   Recorded by the lender before the sale notice

   This paper names a new trustee to handle the foreclosure. The lender can do this without your permission. The substitute trustee's name and phone number will appear on the sale notice, and that is who you call for reinstatement figures.

   Miss. Code § 89-1-63

3. Notice of substitute trustee's sale in the newspaper

   Runs for three consecutive weeks before the sale

   This is the official notice of the foreclosure sale. It must appear in a newspaper published in the county, or one that circulates there if the county has none, and it must name the original borrowers on the deed of trust. It gives the date, place and terms of the sale.

   Miss. Code § 89-1-55

4. Notice posted at the courthouse

   Posted for the same three weeks before the sale

   A copy of the sale notice must be posted at the courthouse of the county where the home is. You can check it there by asking at the courthouse where legal notices are posted.

   Miss. Code § 89-1-55

5. Substitute trustee's deed

   Given to the buyer after the auction

   The trustee signs a deed that passes the home to the highest bidder, who is often the lender. Once the sale is completed, your right to catch up under Mississippi law ends.

   Miss. Code §§ 89-1-59, 89-1-63

6. Notice to vacate and court papers

   From the new owner after the sale

   The new owner may send a letter asking you to move out by a date. If you stay, it can file a court case to get possession, and you will be served with a summons. Do not ignore court papers; call legal aid the same day.

   Miss. Code § 11-25-1

The legal steps in Mississippi

1. You miss payments

   Your servicer will contact you about the missed payments. Under a federal rule it generally cannot start the foreclosure until you are more than 120 days behind. Use this time to ask for help options in writing.

   12 C.F.R. § 1024.41(f)

2. Default letter under your deed of trust

   Mississippi law does not require the lender to mail you a foreclosure notice, but your deed of trust may. If your deed of trust promises more notice than the law requires, the lender must follow it. Read your deed of trust and keep every letter and envelope.

   Miss. Code § 89-1-55

3. Substitute trustee is named

   The lender can appoint a new trustee, often a law firm, with or without your permission. The substitute trustee handles the notice and the sale.

   Miss. Code § 89-1-63

4. Notice of sale is published and posted

   The notice must run in a newspaper published in the county for three consecutive weeks before the sale, and be posted at the county courthouse for the same time. It must name the original borrowers on the deed of trust. A sale that was not advertised this way is not valid.

   Miss. Code § 89-1-55

5. You can still catch up before the sale

   Until the sale is completed, you or anyone with an interest in the home can pay the past due payments plus costs, attorney's fees and trustee's fees on that amount. This puts the loan back in place as if it had never been in default.

   Miss. Code § 89-1-59

6. Trustee's sale (auction)

   The home is sold at public auction in the county where it is located, or in the county where a borrower lives. The lender may bid and buy the home. The buyer gets a substitute trustee's deed.

   Miss. Code §§ 89-1-55, 89-1-63

7. Removal after the sale

   The new owner may send you a notice to move out. If you stay, the new owner can file a court case to get possession of the home, and you will be served with court papers and can respond.

   Miss. Code § 11-25-1

Common questions in Mississippi