Security Instruments in Missouri

Overview

"Security instrument", as that term is used in this chapter, shall mean any mortgage, deed of trust or other real property security instrument securing the payment or satisfaction of any debt or other obligation. MO Rev Stat § 443.005.

Recording Requirements

• § 443.035 - Address, etc.
• Deeds of trust must contain a legal description of the land affected. Id. § 59.330(2) (TIRS, 2015)

Trustees

Missouri law prohibits a foreign corporation or individual from acting as trustee in any security instrument affecting property in the state that is made after August 28, 1994, unless the instrument names as co-trustee a domestic corporation or individual citizen of the state. Id. § 443.350. (TIRS, 2015). It appears as though nearly any entity or adult can serve as a trustee although any conflicts of interest should be taken into account. An underwriter or a title agent could qualify as a trustee if it is a MO corporation. By custom, an attorney who is a resident of Missouri is usually named trustee. The lender/beneficiary selects the trustee.

Duration

• 10 years from date of maturity as found on Note. MO Rev Stat § 516.110. This can be extended to a maximum of 20 years by a recorded written agreement signed by the mortgagor. See Oehler v. Philpott, 263 S.W.2d 201, 202 (Mo. 1953) unraveling the confused mess that is MO Rev Stat § 516.150.
• 20 years from the date of execution the instrument for security instruments lacking a maturity date. MO Rev Stat § 516.155. This applies to both regular security instrument and security instruments that provide for future advances. Id. If there is no date of execution, then the date of acknowledgment shall be used. Id. If there is no date of execution or acknowledgment, then the date of recording shall be used. Id.

ETC

No Mortgage Tax.

A deed of trust is the standard form of security instrument. However, a mortgage is recognized as a valid security instrument. Missouri has a future advance statute. (Mo. Rev. Stat. §443.055) All contractual obligations, obligatory or optional, are secured. The priority of the advances dates from the time the instrument is recorded. An owner may terminate the future advance provision by sending a notice to the lender by certified mail or by delivering the notice in person. Within fifteen days after receipt of said notice, the lender has to record an instrument stating that it has received the termination notice and reciting the total principal amount of the debt as of the date the notice was received. In order to come within the provisions of the statute, the security instrument must recite within the body a provision expressly stating that the instrument is to be governed by the above referenced statutory section.

Satisfaction

1. Releases, satisfactions, and reconveyances - A deed of release of a deed of trust must be delivered to the person who gave satisfaction within fifteen business days. (Section 443.130 Missouri Revised Statutes)
2. Penalties - Failure to provide the release may result in a penalty of ten percent of the amount of security instrument and any other damages which the aggrieved party can prove. (Section 443.130 Missouri Revised Statutes).
3. Terminating revolving credit loans - A request is usually made to have the lender state on his payoff statement that the line of credit is terminated with respect to the revolving credit loan.

• Liability imposed for failure to time satisfy a mortgage is found at MO Rev Stat § 443.130.

Vendors' and Vendees' Liens

These are equitable liens that may take priority over a regular security instrument depending on the facts of the case and the knowledge of the lender regarding any down money given to the seller or any unpaid amounts still owed to the seller from the buyer.

Other

Consumer legislation

There is no significant consumer legislation, which would give rise to title issues with respect to security instruments.

Assignment of security instruments

Security instruments are assigned by the assignor executing an appropriate written document assigning the security interest to the assignee. In order for the assignee to have the benefit of the recording acts, the assignment of the security interest needs to be recorded.

Subordination of security instruments

A written instrument of subordination, which recites the recording information of the document to which the security instrument is to be subordinated, must be recorded in the office of the County Recorder.

Foreclosure

Mortgages are foreclosed by filing a petition for foreclosure in the office of the Circuit Court.

Deeds of trust are foreclosed by utilizing the power of sale contained in the instrument which gives the trustee the right to sell the property at the courthouse provided statutory notice provisions have been met. Notice of the sale must be given by certified mail to persons who have recorded a request for notice of sale and to the last owner of record. The sale must be advertised in a daily newspaper at least 20 times continued to the date of sale starting at least 20 days prior to the scheduled date of foreclosure. All real estate sold under the power of sale is subject to a one year right of redemption provided that the person entitled to redeem gives written notice at the sale, or within ten days before the advertised date of the sale, of the intent to redeem. The person redeeming must give security to the Circuit Court's satisfaction for the payment of the obligation and interest on the debt including all damages as well.

Vendors' Liens

A vendor's lien is a common law lien and may be created by reciting same in the deed of conveyance. By statute, a vendor's lien is unenforceable unless the party claiming same shall, within two years after the indebtedness secured by the lien becomes due, file suit against the owner and other proper parties to enforce the lien.

Cross-References

• Missouri
  • Foreclosures in Missouri
  • Liens in Missouri
• Security Instruments