Mississippi homeowners behind on their mortgage payments can find themselves in a tight spot. They might not even be aware that their house is up for auction at a foreclosure sale because state law doesn't require the bank to notify property owners about the sale personally. Instead, under state law, the bank just has to publish the foreclosure sale date in the newspaper and post a notice at the courthouse.
Fortunately, in most cases, federal law provides homeowners with more protection by setting a 120-day waiting period before the foreclosure starts. This period gives the owners time to work out a way to save the home. Also, the paperwork you signed when you took out the loan might require the servicer to send you a letter providing 30 days to cure the payment default and prevent a foreclosure.
In this article, you’ll learn about homeowner rights under both federal and Mississippi state law.
When Will a Foreclosure Start in Mississippi?
If you can’t make your monthly mortgage payments, your loan servicer must give you time to get your finances in order. Specifically, a federal law requires the bank to wait, in most cases, until the mortgage obligation is more than 120 days overdue before starting the foreclosure process under state law. (12 C.F.R. § 1024.41 (2025).)
During these 120 days, you may apply for an alternative to foreclosure (called “loss mitigation”). If you submit a complete application seeking a loss mitigation option, such as a loan modification, short sale, or deed in lieu of foreclosure, the servicer can’t begin the foreclosure before finishing its evaluation of your application. If the servicer denies the application, it must also wait out any appeal period before it forecloses.
You can also apply for loss mitigation after the 120-day period expires, but it's a good idea to get the ball rolling as soon as possible if you want to avoid a foreclosure.
What Types of Foreclosure Are Allowed in Mississippi?
In Mississippi, the bank can use one of two different processes to foreclose a home: judicial or nonjudicial foreclosure. Most banks choose the fast, easy, and inexpensive nonjudicial procedures.
Nonjudicial foreclosures take place out of court. The bank must complete the steps described in the state statutes. After the bank completes the required steps, it can sell the home at a foreclosure sale.
How Does Mississippi’s Nonjudicial Foreclosure Process Work?
The law in Mississippi is quite different than many other states. The bank doesn’t have to notify the homeowners about the foreclosure personally. Instead, all the bank must do is publish information about the foreclosure sale in a newspaper for three consecutive weeks and post a notice on the courthouse door. Once accomplished, the bank can sell the home. (Miss. Code § 89-1-55 (2025).)
In some cases, however, the bank is contractually obligated to notify the borrowers before officially starting the process. Mississippi mortgage contracts often require the bank to send the borrowers a breach letter giving them 30 days to get current on the loan. Additionally, many banks will voluntarily send a 30-day notice before initiating the foreclosure, even if the mortgage contract doesn’t require it.
Options Available for Mississippi Borrowers During Foreclosure
Mississippi law allows the homeowners to stop a nonjudicial foreclosure by paying the delinquent payments, costs, and fees. Under Mississippi law, the borrower may reinstate the loan (get current) at any time before the sale. (Miss. Code § 89-1-59 (2025).)
Or you might qualify for an alternative to foreclosure after applying for a loss mitigation option.
Does Mississippi Law Allow Deficiency Judgments After Foreclosures?
In Mississippi, if the foreclosure sale fails to bring in enough money to pay off the full amount of the mortgage debt, the bank can file a separate lawsuit afterward and obtain a judgment for the difference. This kind of judgment is called a "deficiency judgment."
Statute of Limitations for Deficiency Judgments in Mississippi
In Mississippi, the bank must file the lawsuit within one year following the foreclosure sale. (Miss. Code § 15-1-23 (2025).) And, the winning bid at the foreclosure sale must be reasonable based on the fair market value of the home—especially in cases when the bank is the high bidder.
How Does the Bank Collect a Deficiency Judgment?
After getting a deficiency judgment, the bank can utilize different collection methods, like a bank levy or wage garnishment, to collect the outstanding balance from the borrowers.
Does Mississippi Have a Redemption Period After Foreclosure?
Some states allow foreclosed homeowners to redeem the property after a foreclosure by paying off the full mortgage debt or reimbursing the purchaser who bought the home at the foreclosure sale. Mississippi law, however, doesn't provide the former homeowners with a post-sale right of redemption.
Talk to a Foreclosure Lawyer in Mississippi
To find Mississippi's foreclosure laws, go to the Mississippi Code, and look in sections 89-1-55 through 89-1-59. Statutes change, so checking them is always a good idea.
How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consult with an attorney if you’re facing a foreclosure.