Missouri Counties

State Auction Process of Missouri

In Missouri, most counties, other than Jackson County and St. Louis City, sell tax liens. This means that when you bid at a Missouri tax auction, you are not buying a deed to the property; instead, you are buying the right to collect the tax amount from the property owner. You have no actual right to possession at that point. If the original property owners are still living in the home, you cannot evict them. You also cannot enter the property itself. Remember, you don’t actually own the property! You only own the tax lien.

After the auction, the county will give you a Certificate of Purchase, which you can exchange for a deed one year later if you follow certain procedures. This one-year period is called the “redemption period,” during which time the record owner of the property can “redeem” the property by reimbursing you the amount you paid plus costs and interest.

Here are a few details about the tax lien auction in Missouri-

Missouri Tax Lien Auctions: Tax lien auctions in Missouri take place in August, and they use an overbid system. The bidder willing to pay the highest amount for the rights to collect on the lien becomes the winner.
Overbid System: In Missouri, the winning bidder usually pays more than the face value of the lien to purchase it at the auction. However, they do not receive any interest on the overbid amount.
Redemption Period: Most properties have a one-year redemption period. If the property is redeemed during this time, the investor earns an interest rate of 10% per year.
Ownership Acquisition: If the lien is not redeemed, the investor can take ownership of the property by filing the necessary paperwork.
Redemption of Overbid Amount: If the lien is redeemed, the overbid amount discussed earlier is returned to the investor. If it’s not redeemed, the overbid amount goes to the county or excess proceeds.
Collector’s Deed: After an unpaid lien, you must file a collector’s deed to start the acquisition process. This requires paying subsequent taxes, performing a title search, and sending notices to interested parties within a set time period.
Exceptions: The city of St. Louis and Jackson County conducts tax deed sales instead of tax lien sales.

Foreclosures in Missouri

In Missouri, there are two main types of foreclosure: judicial foreclosure and non-judicial foreclosure.

Judicial Foreclosure

A judicial foreclosure is a legal process that allows a lender to take ownership of a property if the borrower defaults on their mortgage. The lender must file a lawsuit against the borrower in court. The court will then order a foreclosure sale. The borrower has the right to a hearing in court before the foreclosure sale.

Non-Judicial Foreclosure

This process is used if there is a power of sale clause in the mortgage or deed of trust. The lender or their representative, typically referred to as the trustee, can sell the property without going to court. The trustee must follow the guidelines for a power of sale foreclosure, which include:

Mailing a notice of sale to the borrower at their most recent address on file at least 20 days before the sale.
Publishing a notice of sale in a county-based newspaper.
Conducting the sale in a cash public auction to the highest bidder.

The borrower has a year (12 months) to redeem the property if the lender is the successful bidder.

Where can I get a list of Delinquent Property Tax Sales?

Each county collector is responsible for publishing information on the properties to be sold for delinquent taxes. Click on the collector link to access a full directory of county collectors.

Quick Facts

– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically 60 days
– Right of Redemption: Yes
– Deficiency Judgments Allowed: No