Montana foreclosure laws: how the process works and how long it takes

• MCA § 71-1-301 et seq.: Primary framework for non-judicial trustee's sale of trust indentures (deeds of trust) on tracts of 40 acres or less in Montana. Establishes requirements for the notice of sale, trustee's sale procedures, right to cure, and anti-deficiency protections.
• MCA § 71-1-312; MCA § 71-1-313: Requires recording a notice of sale that states the default and the sum owing, with a sale date at least 120 days after the notice is recorded (§ 71-1-313). Borrower has the right to cure the default and reinstate the loan at any time before the time set for the trustee's sale by paying the entire amount then due plus costs and fees (§ 71-1-312).
• MCA § 71-1-315: Governs Notice of Sale requirements for non-judicial foreclosure. Notice must be published once a week for 3 successive weeks in a newspaper of general circulation published in a county where the property is located, with the last publication at least 20 days before the sale. Notice must also be posted on the property at least 20 days before the sale and mailed to the borrower at least 120 days before the sale.
• MCA § 71-1-317: Bars deficiency judgments when property is sold through the non-judicial trustee's sale process under the Small Tract Financing Act. This is a strong protection — if your home is sold at trustee's sale, the lender cannot pursue you for the difference between the sale price and the loan balance.
• MCA § 71-1-222: Framework for judicial foreclosure of mortgages (and trust indentures where chosen). Judicial foreclosure carries a 1-year post-sale redemption period under MCA § 25-13-802.
• MCA § 71-1-228: Extends the redemption rights that apply after foreclosure and execution sales (a 1-year period under MCA § 25-13-802) to sales under a power of sale in a mortgage or deed of trust. Does NOT apply to non-judicial foreclosure under the Small Tract Financing Act.
• MCA § 70-32-104: Sets the homestead value limit: $350,000 in 2021, rising 4% every calendar year after 2021. Protects that amount of equity in the homeowner's primary residence from forced sale by judgment creditors. Does NOT protect against mortgage or trust indenture foreclosure. Must be filed (declaration of homestead) to receive protection.
• MCA § 71-1-318: The trustee's deed conveys the property to the buyer without right of redemption. Once recorded, the deed's recitals and the affidavits of mailing, posting, and publication are prima facie evidence in court of the facts they recite, and conclusive evidence in favor of a later good-faith buyer.

The purchaser at a trustee's sale is entitled to possession on the 10th day after the sale; anyone still in possession after that date, except under an interest older than the trust indenture, is treated as a tenant at will. The purchaser may file a forcible entry and detainer action; if the court rules for the purchaser, judgment is entered for restitution of the premises. The federal Protecting Tenants at Foreclosure Act provides 90-day notice to bona fide tenants.

Surplus proceeds from the trustee's sale (above the debt and costs) belong to the former owner or junior lienholders in priority order. The trustee deposits the surplus with the county clerk and recorder and mails notice of it to those who were sent notice of the sale; after that, the trustee has no further responsibility for it. To get the money, a party must petition the district court in that county, which sets the order of priority and orders the county treasurer to pay it out.

Generally first in time, first in right. Montana recording statutes govern lien priority. Property tax liens have priority over all other liens including first mortgages. County tax foreclosure is available.

6-year statute of limitations for actions on written contracts (including mortgages and trust indentures) in Montana, under MCA § 27-2-202 as amended in 2025. For a note payable at a definite time, an action must be brought within 6 years after the payment date stated in the note or, if the payment date is accelerated, within 6 years after the accelerated date. Different rules apply to notes payable on demand. Deficiency judgments are barred for non-judicial foreclosure under MCA § 71-1-317. In a judicial foreclosure, any deficiency is decided in the one foreclosure action: if the sale proceeds fall short, judgment can be docketed for the balance against those personally liable (MCA § 71-1-222), except that a seller who took a mortgage for the unpaid purchase price is not entitled to a deficiency judgment (MCA § 71-1-232). Consult a local attorney.

• Unpaid property taxes: Property tax liens have priority over mortgage liens in Montana. The county attaches a tax lien for unpaid property taxes and may assign it to a third party. The owner, the occupant, or another interested party (including a mortgagee) can redeem the tax lien by the first working day in August, 3 years after the tax lien attached (2 years for certain vacant subdivided lots with delinquent special improvement district assessments). If it isn't redeemed, the county treasurer grants the assignee a tax deed. For a home occupied by its owner of record, the assignee must first give notice that a tax deed will be auctioned unless the lien is redeemed before the auction. Contact the county treasurer for specific procedures and timelines.

$350,000 in 2021, rising 4% every calendar year after 2021, so the limit varies by year (the Department of Revenue sets it by rule). Protects up to that amount of equity in your primary residence from judgment creditors. Does not stop mortgage or trust indenture foreclosure. Montana's homestead value limit was $350,000 in 2021 and must increase by 4% every calendar year after 2021; the Department of Revenue sets the limit by rule. The exemption must be filed (declaration of homestead) to receive protection. It protects equity from judgment creditors, bankruptcy trustees, and other forced sales, but provides no protection against your mortgage lender foreclosing. Given Montana's rapidly rising property values — especially in Bozeman, Missoula, and Kalispell — the exemption may not fully cover equity in higher-value homes.

No Montana-specific military foreclosure protections beyond federal SCRA identified. Under federal SCRA, if you took out your mortgage before active duty, you generally can't be foreclosed on without a valid court order while on active duty and for 12 months after it ends, and you can ask for a 6% interest rate cap for your time on active duty and one year after. Montana has Malmstrom Air Force Base near Great Falls. Military families should contact their installation legal assistance office immediately if facing foreclosure.

Montana's anti-deficiency protection (MCA § 71-1-317) for non-judicial foreclosure does not remove the federal tax consequences of foreclosure: the IRS treats a foreclosure as a sale or other disposition of the home, which can produce a gain or loss, and canceled debt can be taxable income.