Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
1. Clarify Your Ownership Structure
In Missouri, joint property owners hold title either as joint tenants with right of survivorship or as tenants in common. Joint tenants each own an equal share; when one dies, the survivor inherits (see RSMo §461.010 and RSMo §461.020). Tenants in common may own unequal shares and pass their share by will. Understanding your form of ownership determines who must consent to a sale.
2. Evaluate Your Mortgage and Liens
Contact your lender to obtain the current payoff balance and any prepayment penalties. Review county records for additional liens or judgments. Clearing liens before sale ensures marketable title.
3. Obtain a Professional Property Valuation
Hire a licensed appraiser or work with a real estate agent to set a realistic listing price. Accurate valuation helps you attract buyers quickly and maximize proceeds.
4. Coordinate Consent and Signatures
All owners must sign the listing agreement and sale contract. If co-owners disagree, you may file a partition action under RSMo §514.010 to compel a sale or divide proceeds according to ownership shares.
5. List and Market the Property
Engage a real estate agent experienced with pre-foreclosure sales. Disclose any pending foreclosure to potential buyers. A swift marketing campaign reduces the risk of losing control at the foreclosure hearing.
6. Clear Title and Prepare Closing Documents
Work with a title company to address title defects and obtain a commitment. Provide a copy of the proposed sale contract to your lender; some lenders agree to a short sale if the payoff exceeds market value.
7. Allocate Sale Proceeds and Resolve the Foreclosure
At closing, the title company will pay off the mortgage and any liens from sale proceeds. Distribute the remainder to co-owners according to their ownership percentages. After payoff, request the lender to dismiss the foreclosure under RSMo §443.140 and satisfy the court order of sale (RSMo §443.150).
Helpful Hints
- Start early: foreclosure schedules move quickly; begin preparations as soon as possible.
- Document everything: keep written records of payoff statements and communication with co-owners and the lender.
- Explore a short sale: if the market value is below your mortgage balance, ask the lender to approve a sale “in lieu of foreclosure.”
- Consider mediation: some Missouri courts offer mediation programs for foreclosure disputes.
- Maintain property condition: repairs and staging can improve saleability and price.