David borrows $280,000 from Heartland Savings Bank to purchase a home in Springfield, Missouri. He signs both a promissory note and a deed of trust. David later defaults on the loan. Under Missouri law, which foreclosure process will Heartland Savings Bank most likely use?
Correct Answer
A) Non-judicial foreclosure conducted by the trustee through a public trustee's sale
Because Missouri uses deeds of trust as the primary security instrument, foreclosure is conducted non-judicially through a trustee's sale under RSMo §§ 443.290–443.430. When David defaults, the beneficiary (Heartland Savings Bank) directs the trustee to foreclose. The trustee must publish notice for 20 consecutive days in a local newspaper and then conduct a public sale. No court involvement is required, making the process faster and less expensive than judicial foreclosure.
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