Missouri is primarily a:
Correct Answer
B) Deed of trust state that allows non-judicial foreclosure (power of sale), though judicial foreclosure is also available
Missouri primarily uses deeds of trust rather than mortgages. Deeds of trust include a power of sale clause that allows non-judicial foreclosure, which is faster and more common in Missouri. However, judicial foreclosure is also legally available. Missouri is considered a title theory state in that the trustee holds legal title until the debt is satisfied.
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Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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