Real Estate Costs in Missouri
Missouri’s median residential real estate prices are generally much lower than the national average price for single-family homes.
According to Zillow.com, the December 2010 median price for a single-family home in Missouri ranged from $111,000-$140,000. This range is about 28%-33% lower than the December 2010 national median price of $179,000. Many real estate experts think that Missouri’s sharply lower median residential real estate prices can be attributed to a greater supply of older homes in neighborhoods that are located near major highways and rural areas. Economists also believe that Missouri’s lower median residential real estate prices are the result of lower marginal incomes and higher than normal inventories of affordable homes in Missouri’s cities and rural areas.
Compared with Nationwide Averages
In addition, Missouri’s statewide mortgage rates tend to be slightly lower than the national average for a variety of reasons.
For example, Missouri’s 15 and 30-year fixed mortgage rates tend to be slightly lower than the national average because the competition for business seems to be more intense in Missouri’s cities and suburbs. This is true because most of Missouri’s mortgage providers tend to do business near Kansas City and St. Louis. Furthermore, Missouri’s 1, 3 and 5-year adjustable rate mortgages tend to be slightly lower than the national average because the demand for these mortgages tends to be slightly lower than the national average. Moreover, Missouri’s jumbo mortgage rates tend to be much lower than most national jumbo mortgage rates because Missouri seems to have a much lower demand for these mortgages than the national average.
Missouri’s Most Popular Cities
Branson is located near the Missouri-Arkansas border in Southeast Missouri. It is a popular destination among music fans that flock to the area to visit the area’s many music halls. Branson is also a popular travel hub among truck drivers who visit the area to refuel and rest.
Kansas City is located on Missouri’s western border near the Missouri River. It is well-known for its professional sports teams, its fine barbecue joints and for its wide variety of small restaurants. As a result, Kansas City is very popular among sports fans and food lovers who come to city in droves each year. In addition, Kansas City is a popular banking center because several key Federal Reserve offices are located in the area.
Two of Missouri’s smaller towns are rapidly growing despite America’s current economic problems.
One of these towns is Wentzville. Wentzville is located in St. Charles County. Its population has more than doubled over the last five years because several prominent car makers have built factories in the area. In addition, many people from St. Louis have also moved to Wentzville to take advantage of the area’s lower housing prices and plentiful supply of homes.
Another Missouri town that is rapidly growing is Oronogo. Oronogo is located about 10 minutes northeast of Joplin in Southeast Missouri. Oronogo is growing at a rapid pace because the demand for its tourism services has grown at a rapid pace. In addition, Oronogo is also growing at a rapid pace because many retail firms are attracted to the area’s lower tax rates.
Background Information About Home Loan Contracts in Missouri
Most Missouri home loan providers prefer to use deed of trust instruments to govern home loan contracts nowadays.
This is true because it’s often much easier to foreclose on a deed of trust instrument than it is a mortgage contract. In addition, Missouri’s contract laws also allow home loan providers to use deed of trust instruments to attach a lien on homes that were purchased with home loans.
As a result, most Missouri home loan providers prefer to use deed of trust instruments that states the physical location of the property, the maturity date of the loan, the debtors who are responsible for paying the loan and how the property can be used to back the loan. These stipulations are important to consider during the foreclosure process because they can help people who are interested in purchasing a foreclosed home in Missouri find cost-effective methods to purchase foreclosed homes.
However, Missouri also recognizes mortgage contracts as valid home loan contracts.
Many Missouri home loan providers must use mortgage contracts to govern the terms of a home loan because state and federal regulations often require the use of mortgage contracts. For example, most Veteran’s Administration loans are governed by a mortgage contract in Missouri because Veteran’s Administration guidelines require Missouri home loan providers to provide mortgage contracts to veterans who wish to use them.
In addition, many refinance loans, most second mortgages and most home equity loans must be governed by a mortgage contract. This is true because Missouri’s contract laws usually require home loan providers to use mortgage contracts to govern these loans.
Furthermore, Missouri’s home loans are also governed by non-recourse statues that govern most home loans.
As a result, Missouri home loan providers are not usually allowed to sue for any outstanding balances that are left over after a foreclosed home is sold at auction.
Information About the Foreclosure Process in Missouri
Missouri recognizes judicial and non-judicial foreclosures as valid ways to foreclose on a home.
However, the vast majority of foreclosures in Missouri tend to be non-judicial foreclosures because they give lenders who use a deed of trust contract many options to foreclose on a home.
Nonetheless, some Missouri home loan providers must use a judicial foreclosure process if the loan is governed by a mortgage contract. As a result, here is how Missouri’s judicial foreclosure process is executed on home loan contracts that are governed by a mortgage contract:
Judicial Foreclosure Process
- The lender must first formally petition a district court to start the foreclosure process. This petition must be filed in a district court that is located in the same county seat where the home is actually located.
- The formal petition must list any persons that owe the debt.
- The petition must also list any creditors who have any possible legal right to place a lien on the property.
- The lawyer who represents the lender must then file a special lien on the home to prevent the borrower from selling the home. This lien is called a “Lis Pendens” lien on the property.
- The lawyer must then send the borrower a formal notice via certified mail of the borrower’s intent to foreclose on a property. This notice must be sent within 20 days of the formal hearing.
- Borrowers have 10 calendar days in which to respond to the petition.
- If the borrower does not respond to the petition within 10 days, the lender may ask for a default judgment. If the court grants a default judgment, the borrower is not allowed to attempt to redeem the property.
- If the borrower does respond to the petition within 10 days, the judge handling the case will set a time, date and place for a formal hearing to take place.
- If the lender loses the case, he must give the borrower up to 60 days to come up with a viable repayment plan to redeem the property.
- If the borrower loses the case, he must give up possession of the home within 72 hours after the judgment is filed.
Non-Judicial Foreclosure Process
On the other hand, Missouri’s non-judicial foreclosure process is used to foreclose on home loans that have a valid deed of trust contract that govern the loan. Here is how that process works:
1) A lawyer who represents the lender must file a motion to ask for permission to use Missouri’s non-judicial process to foreclose on a home. The motion must be filed at the district court that is located inside the same county seat where the home is located in. The motion is used to determine if a valid “power of sale” clause is included inside the deed of trust that governs the home loan.
2) If the judge handling the case determines if a valid “Power of Sale” clause exists in the home loan documents, the lender is required to consult the power of sale clause to determine if there are clear selling instructions.
3) If these instructions exist, then the lender must follow these instructions as long as they follow Missouri’s contract and consumer protection laws.
4) If the home loan contract does not have these instructions, a judge will order a foreclosed home to be sold using Missouri’s judicial foreclosure process that was outlined above.
5) If the home loan contract does include these instructions, the sale of the home is then governed using the steps outlined below:
A) The lender must file a default notice at the city clerk’s office in the county in which the property is located. The default notice must include the borrower’s name, the name of the lender and a 100% accurate description of the home’s location and deed number. The default notice must also include the type of default and the entire amount of money the borrower owes. The notice must also include a formal declaration that the lender wishes to sell the property at a specified time and place.
B) The lender must send a copy of this notice to the borrower via certified mail at least twenty calendar days after the default has been noted and no later than forty days before the date of the sale.
C) The lender must also publish a Notice of Foreclosure Sale in a newspaper published in the county where the home is located. This must be done at least once every seven days over the next four weeks. Furthermore, the last publication must be created at least one week before the home’s anticipated sale date. The last publication of the notice must appear within one week of the home’s sale date.
D) If the home is located in a Missouri first-class county, lenders must publish a Notice of Foreclosure Sale in a daily newspaper that is published in the same county in which the home is located. This notice must run in the same newspaper for 21 consecutive days. Furthermore, the last publication of the notice must appear on the day the home is put up for sale.
E) The borrower has up to 20 calendar days to decide to redeem the property.
F) If borrowers decide to redeem the property, they may redeem the property provided the following two things happen:
- The lender wins the right to purchase the home at the auction.
- The borrower pays within 10 calendar days of the auction’s close all interest charges, taxes and legal fees that were incurred to foreclose on the home.
If these things happen, borrowers have up to one year to redeem the loans on their homes.
G) If the borrower can’t redeem the home, the home is sold at a public auction at a prescribed time and location to the highest bidder.
H) The lender may request to postpone the sale of the home until a later time. The person conducting the sale must send a notice to everyone involved. This procedure must be followed for each subsequent postponement.
I) Finally, the lender may not sue the borrower for a deficiency payment if the sale price is less than the total amount originally owed on the loan.
This is true because Section 443 of Missouri’s statues state that home loan providers cannot sue for any outstanding balances on home loans.