How foreclosure works in Montana

The notices you will receive in Montana, in order

1. Late notices and the breach letter

   After a missed payment; your servicer sends these

   Your servicer contacts you about the missed payments. Most loans cannot be sent to foreclosure until you are more than 120 days behind. Ask for a loss mitigation application now.

   12 C.F.R. § 1024.41(f)

2. Notice of Trustee's Sale

   Mailed by certified mail at least 120 days before the sale

   This is the main foreclosure paper in Montana. It is recorded with the county clerk and recorder and lists the default, the amount owed, and the date, time and place of the sale. Write the sale date down and call a housing counselor or legal aid right away.

   Mont. Code Ann. §§ 71-1-313, 71-1-315

3. Notice posted on your property

   At least 20 days before the sale

   A copy of the notice of sale is posted in a visible place on the property. A sheriff or constable may post it if the trustee asks.

   Mont. Code Ann. § 71-1-315

4. Newspaper notice

   Once a week for 3 weeks; the last one at least 20 days before the sale

   The notice runs in a newspaper in the county. Investors read these notices, so expect mail and calls from people offering to help or to buy your home.

   Mont. Code Ann. § 71-1-315

5. Trustee's sale and trustee's deed

   On the date in the notice, between 9 a.m. and 4 p.m.

   The trustee or the trustee's attorney auctions the home at the courthouse, at the property, or at the trustee's office in the county. The buyer gets a trustee's deed with no right of redemption for you.

   Mont. Code Ann. §§ 71-1-313, 71-1-318

6. Summons and complaint (court foreclosure only)

   If the lender chooses to sue instead of using a trustee's sale

   A lender may foreclose a trust indenture through the district court. If you are served with a summons and complaint, there is a deadline to respond, and the rules on deficiency and redemption are different.

   Mont. Code Ann. §§ 71-1-304, 71-1-222

The legal steps in Montana

1. Missed payments and the federal waiting period

   Your servicer generally cannot start a foreclosure until you are more than 120 days behind. Use this time to ask for help with the payments and to talk to a free housing counselor.

   12 C.F.R. § 1024.41(f)

2. Notice of Trustee's Sale is recorded and mailed

   The trustee records a notice of sale with the county clerk and recorder and mails you a copy by certified mail at least 120 days before the sale date. The notice states the default, the amount owed, and the date, time and place of the sale.

   Mont. Code Ann. §§ 71-1-313, 71-1-315

3. Posting and newspaper notice

   At least 20 days before the sale, the notice must be posted on the property. It must also run in a local newspaper once a week for 3 weeks, with the last run at least 20 days before the sale.

   Mont. Code Ann. § 71-1-315

4. Your right to catch up

   Any time before the time set for the sale, you can stop the foreclosure by paying the amount actually past due plus the costs, trustee's fees and attorney fees. You do not have to pay the full loan balance to do this.

   Mont. Code Ann. § 71-1-312

5. Trustee's sale

   The trustee or the trustee's attorney sells the home at public auction to the highest bidder at the place named in the notice. After a trustee's sale you cannot buy the home back, and the lender cannot get a deficiency judgment against you.

   Mont. Code Ann. §§ 71-1-315, 71-1-317, 71-1-318

6. Possession after the sale

   The buyer is entitled to possession on the 10th day after the sale. Anyone who stays after that is treated as a tenant at will, and the buyer can take steps to have you removed.

   Mont. Code Ann. § 71-1-319

Common questions in Montana