- Who sends it
- The lender or its attorney files a lawsuit and has you served with a summons and complaint
- What it starts
- A court case with an answer deadline printed on the summons
- Do this first
- Check the sale date on the substitute trustee's deed and call legal aid before the answer deadline
What this document is in Mississippi
Mississippi foreclosures are usually trustee's sales without a court, so a lender that wants the rest of the debt has to file a separate lawsuit. The Mississippi Supreme Court held in Hartman v. McInnis (2007) that a lender has no right to a deficiency until it satisfies the court that one would be fair in light of the sale price, and it must prove the home's fair market value (Mississippi extras-more file).
Some lenders first send a demand letter for the balance. The national deficiency letter guide covers those letters.
What it does and does not mean
- A gap between the sale price and the debt is not enough by itself. The lender must show more, and the judge decides fair market value from the evidence (Hartman).
- If the lender bought the home at the sale, it must give you fair credit for the home's commercially reasonable value (Hartman).
- It is not a judgment yet. You can answer and raise these points.
- A second mortgage lender that did not foreclose is treated differently and may have six years to sue on its note (Miss. Code § 75-3-118; Hubbard v. BancorpSouth Bank, 2014).
The deadlines that matter and how to count them
- The lender's deadline: the foreclosing lender must sue on an installment note within one year after the foreclosure sale (Miss. Code § 15-1-23; Hubbard). Count from the sale date shown on the substitute trustee's deed to the date the lawsuit was filed, which is on the complaint.
- Your deadline: the summons states how long you have to respond. Count from the day you were served and do not let it pass.
- Short sale or deed in lieu: the state files found no Mississippi statute on balances after these. The written agreement controls.
See deficiency judgments in Mississippi for more.
What to do this week
- Find the foreclosure sale date and the filing date of the lawsuit. If more than one year passed and the plaintiff is the lender that foreclosed, tell your lawyer.
- Gather proof of your home's value at the time of sale: appraisals, tax assessments, listings of similar homes.
- Get the sale price from the substitute trustee's accounting or the deed.
- Call North Mississippi Rural Legal Services at 1-800-898-8731 or Mississippi Center for Legal Services at 1-800-498-1804 before your answer is due.
- If a debt collector is calling, ask for the details in writing before you pay.
State help and scam warnings
More contacts are on the Mississippi foreclosure help page. Report collection abuse or a suspected scam to the Mississippi Attorney General's Consumer Protection Division.
- Do not ignore court papers because you think the debt ended with the foreclosure. A default judgment can lead to garnishment.
- Be careful with "debt settlement" companies that want fees before they do anything.
The rest of the Mississippi process
See how foreclosure works in Mississippi, the timeline, ways to stop it and free help in Mississippi, or read the national guide to this letter.
Common questions
How long does a Mississippi lender have to sue me after foreclosure?
The foreclosing lender must sue on an installment note within one year after the foreclosure (Miss. Code § 15-1-23, as applied in Hubbard v. BancorpSouth Bank, 2014).
Does the lender automatically get the difference between the sale price and the debt?
No. Under Hartman v. McInnis (2007), the lender must prove fair market value and satisfy the court that a deficiency would be fair in light of the sale price.
My second mortgage lender is suing me years later. Is that allowed?
Possibly. In Hubbard, the Mississippi Supreme Court said a second lender that did not foreclose is not bound by the one-year rule and applied a six-year limit for notes (Miss. Code § 75-3-118). A lawyer can check your dates.
Other Mississippi letters
- Notice of Substitute Trustee's SaleIn Mississippi, the notice of sale is the main foreclosure notice the law requires. It is published in a county newspaper and posted at the courthouse for three weeks in a row before the sale. State law does not require a mailed copy, but your deed of trust may. You can still catch up on what is past due and stop the sale until the sale is completed.
- Substitute Trustee's DeedAfter a Mississippi trustee's sale, the substitute trustee signs a substitute trustee's deed to the buyer. No court has to approve the sale, and the state files found no right to buy the home back. The buyer still has to go to court to remove you, and you may owe a balance or be owed a surplus.
- Complaint for Unlawful Entry and Detainer (eviction after foreclosure)After a Mississippi foreclosure sale, the buyer usually sends a letter telling you to leave, then files a complaint for unlawful entry and detainer to get possession. The case is heard in county court, or in justice court where the county has no county court. It decides only who has the right to possession, not whether the foreclosure was valid.
- Chancery clerk's notice that tax sale redemption is endingIf your Mississippi property was sold for unpaid taxes, you have two years from the sale to redeem. Between 180 and 60 days before that period ends, the chancery clerk must send a notice saying that title will become absolute in the buyer unless you redeem by a stated date. This is your last warning.