FIRST REGULAR SESSION
HOUSE BILL NO. 1168
95TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES NASHEED (Sponsor) AND STORCH (Co-sponsor).
2442L.01I D. ADAM CRUMBLISS, Chief Clerk
To repeal sections 443.310 and 443.325, RSMo, and to enact in lieu thereof two new sections relating to the rights of tenants in cases of foreclosure.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 443.310 and 443.325, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 443.310 and 443.325, to read as follows:
443.310. All sales of real estate under a power of sale contained in any mortgage or deed of trust executed after August 28, 1989, shall be made in the county where the land to be sold is situated, and not less than [twenty] sixty days' notice of such sale shall be given to mortgagors or grantors named in the mortgage or deed of trust and any tenants residing on the property in the manner required by subsection 3 of section 443.325 and not less than twenty days' notice of such sale by publication shall be given as required by section 443.320, whether so provided in such mortgage or deed of trust or not. Where the property to be sold is located in more than one county, the property may be sold in any county where a part of the property is located.
443.325. 1. Any person desiring notice of sale under any deed of trust or mortgage with power of sale upon real property may, at any time subsequent to recordation of such deed of trust or mortgage, cause to be filed for record in the office of the recorder of each county in which any part or parcel of the real property is situated a duly acknowledged request for such notice of sale. This request shall specify the name and address of the person to whom the notice is to be mailed and shall identify the deed of trust or mortgage by stating the names of the parties thereto and the legal description of the land described therein and the book and page where the same is recorded or the recorder's number and shall be in substantially the following form:
"In accordance with RSMo, 443.325, request is hereby made that notice of sale under the deed of trust (or mortgage) recorded the .... day of ........., 20.., (as recorder's number .... or in Book ...., Page ....) of the records of .......... County, Missouri, the legal description of the property being .... in County, Missouri, executed by .... as Grantor (or Mortgagor) in which .... is named as beneficiary (or Mortgagee) and .... as Trustee, be mailed to .... (Name) at ...., (Address) ...., (City) (State).
A separate request shall be filed for each person desiring notice of sale.
2. Upon the filing for record of such request, the recorder shall index the request in a separate index so that the name of the mortgagor or grantor shall be indexed as the grantor, and the name of the requesting party shall be indexed as the grantee.
3. In the event of foreclosure under a power of sale, the foreclosing mortgagee or trustee shall, not less than [twenty] sixty days prior to the scheduled date of the sale, cause to be deposited in the United States mail an envelope certified or registered, and with postage prepaid, enclosing a notice containing the following information [required] in [the published notice of sale referred to in section 443.320, addressed] at least fourteen-point type:
"NOTICE OF FORECLOSURE SALE
Dear Sir or Madam:
If you own the property known and numbered as (property address), or you are a tenant and renting the aforesaid property, you are in danger of losing your home.
Our office has been appointed (trustee of successor trustee) of the deed of trust signed by (name and address of the mortgagors) on (date of execution) and recorded in (enter book and page) and having a legal description as follows: (enter legal description).
As (trustee or successor trustee), we have been instructed by (name and address of holder of promissory note secured by the deed of trust), to proceed with foreclosure of the above referenced property because a default has occurred in the payment of the mortgage on the property. The foreclosure sale is scheduled for (date) at (time) at (location).
If you are the owner and are experiencing financial difficulty, you should know that there are several options available to you that may help you keep your home. Housing counseling agencies which provide free of very low-cost counseling are available to help you assess your financial condition and, most importantly, work with your lender to explore the possibility of modifying your loan, establishing an easier payment plan for you, or even working out a period of loan forbearance with your lender. The Department of Housing and Urban Development (HUD) and the Missouri Housing Trust Fund (MHTF) maintain lists of government-approved counseling agencies in your area. You may obtain these lists by calling the following toll-free numbers: (telephone numbers for HUD and MHTF). You should consider contacting one of these listed housing counseling agencies immediately. You should also contact your lender directly at (telephone number for the lender's loss mitigation department). While we cannot assure you that a mutually agreeable resolution will be possible, we encourage you to call immediately because the longer you wait the fewer options you may have.
You may also wish to contact an attorney or your local legal aid office for legal assistance.
If you are a tenant, this notice is to inform you that your lease might be terminated if the property you are renting is sold at the foreclosure sale scheduled on the above date. Please note that the scheduled foreclosure sale may be cancelled if your landlord cures the default or otherwise reaches an agreeable resolution with the lender. Your failure to pay rent to your landlord prior to the foreclosure sale could subject you to an eviction lawsuit by your landlord for nonpayment of rent. You may wish to contact an attorney to find out your rights as a tenant. You can also call (phone number for trustee) on or after (date of foreclosure sale) to find out whether the foreclosure sale occurred and to find out the new owner of the property.".
4. The notice required in subsection 3 of this section shall be addressed:
(1) To each person whose name and address is set forth in any such request recorded at least [forty] sixty days prior to the scheduled date of sale; and
(2) To the person shown by the records in the office of the recorder of deeds to be the owner of the property as of [forty] sixty days prior to the scheduled date of foreclosure sale at the foreclosing mortgagee's last known address for said record owner; and
(3) To the mortgagor or grantor named in the deed of trust or mortgage at the foreclosing mortgagee's last known address for said mortgagor or grantor[.] ; and
(4) To any tenants living in the property subject to foreclosure. Unless the mortgagee shall have actual notice of the tenant's name, any notice to a tenant required in this section shall be sufficient if addressed to "tenant";
[(4)] (5) Actual receipt by the addressee of the envelope referred to above shall not be necessary to establish compliance with the notice requirements of subsection 3 hereof. Recording of receipt issued by the United States Post Office for certified or registered mail to evidence that said envelope has been delivered by the sender to the United States Post Office shall constitute proof of compliance with notice requirements of subsection 3 hereof.
4. The foreclosing mortgagee or trustee of a deed of trust or mortgage filed subsequent to a deed of trust or mortgage for which a request has been recorded in accordance with subsection 1 hereof shall give notice to each person named in each such request so long as the prior deed of trust or mortgage identified in such notice has not been released of record.
5. The release of a deed of trust or mortgage shall cancel of record all requests for notice which pertain to the deed of trust or mortgage identified in such request.