State Foreclosure Law

Montana Foreclosure Laws

Montana is a non-judicial foreclosure state — the primary path uses the trust indenture (deed of trust) power of sale under the Small Tract Financing Act (MCA § 71-1-301 et seq.). Montana has STRONG anti-deficiency protection for non-judicial trust indenture foreclosures: MCA §…

Process

Non-Judicial

Out of court, under a power of sale §

Foreclosure Length

Varies

Depends on the case

Homestead Exemption

$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)

Must file to claim: declaration of homestead · the rule §

Deficiency Judgment

Limited

Not allowed for non-judicial foreclosure §

43 source pages cited · Last checked Mar 10, 2026

Not legal advice. This page provides general information about Montana foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — readers should confirm current statute text and consult a Montana-licensed attorney for situation-specific advice.

Facing foreclosure? The timeline, your rights and your options are laid out in the Montana foreclosure guide →

On this page

01 Governing statutes
02 Foreclosure process and your rights
03 Special foreclosure types
04 Lien priority
05 Statute of limitations
06 Probate & inheritance
07 Consumer protection & compliance
08 Legal aid & pro bono resources
09 Find help in Montana
10 National foreclosure guides
11 Montana distress data

Governing Statutes

Citation	Title	Covers
MCA § 71-1-301 et seq.	Small Tract Financing Act — Non-Judicial Foreclosure	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	Notice of Sale and Right to Cure	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	Notice of Sale Requirements	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	Anti-Deficiency Protection for Non-Judicial Foreclosure	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	Judicial Foreclosure of Mortgages	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	Rights of Redemption Applicable	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	Homestead Exemption	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	Trustee's Deed	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.

Montana Foreclosure Process and Your Rights

Montana uses non-judicial foreclosure. State law does not set one typical length from the first notice to the sale. §

Paying to stop the foreclosure: You can cure the default and reinstate the loan at any time before the time the trustee set for the trustee's sale by paying all past-due amounts, fees, and costs. §
After the sale: No post-sale redemption for non-judicial trustee's sale: the trustee's deed conveys the property to the purchaser without right of redemption. For judicial foreclosure, 1-year redemption period under MCA § 25-13-802. §
Homestead exemption: $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. §
Mediation: Montana does not have a statewide foreclosure mediation program.

Step-by-step timeline, your rights at each stage, mediation, options to keep or leave the home, and what happens after the sale: Read the full Montana foreclosure guide →

Special Foreclosure Types in Montana

Beyond the standard non-judicial foreclosure process, Montana law addresses several specialized foreclosure categories.

HOA & Condo Association Foreclosure

Condominium association liens may be foreclosed in Montana. §

Under Montana's Unit Ownership Act, a condominium association that records a claim has a lien on the unit for unpaid common expenses; the lien is foreclosed following the procedure for liens under Title 71, chapter 3, part 5, and the association can also sue for the money without foreclosing (MCA §§ 70-23-607, 70-23-608).

Tax Lien Foreclosure

Property tax liens have priority over mortgage liens in Montana. §

Counties may sell tax-delinquent property at annual tax lien sales.

Lien Priority in Montana

Generally first in time, first in right. Montana recording statutes govern lien priority.

Condominium association liens (MCA § 70-23-607) do not have priority over a first mortgage or trust indenture of record. Consult a local attorney for specific lien priority questions.

Statute of Limitations in Montana

Mortgage Foreclosure

6 years §

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.

Written Contracts

6 years §

Promissory Note

6 years §

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 Judgment

Varies §

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.

Probate & Inheritance in Montana

When a mortgaged property owner dies, foreclosure proceedings interact with the probate process. Montana law establishes specific rules for estate notification, heir protections, and the rights of executors to cure defaults.

Pause When the Borrower Dies

State law doesn't pause a foreclosure when the borrower dies, so it can go on during probate.

Notification to Estate

The lender must notify the estate or personal representative before proceeding.

Foreclosure must be served on the estate or personal representative of a deceased borrower.

Heir Protections

Heirs who inherit and occupy the property as a primary residence may qualify as successors in interest under 12 CFR 1024.31 and apply for loss mitigation.

Executor Reinstatement Rights

The executor or personal representative may reinstate the mortgage by curing the default.

Garn-St. Germain Act

Due-on-sale clause may not be enforced against heirs inheriting and occupying the property as a primary residence under Garn-St Germain, 12 U.S.C. 1701j-3.

Uniform Partition of Heirs Property Act (UPHPA)

Not adopted in this state.

Consumer Protection & Compliance in Montana

State consumer protection statutes, foreclosure rescue fraud laws, and professional compliance rules that apply to mortgage servicing and foreclosure-related services in Montana.

UDAP Statute

Montana Unfair Trade Practices and Consumer Protection Act §

Broadly prohibits unfair or deceptive trade practices.

Foreclosure Rescue Fraud Laws

No specific foreclosure rescue fraud statute.

General consumer protection under MCA § 30-14-103 covers deceptive foreclosure rescue practices. Federal FTC Act and CFPB enforcement also apply.

Attorney Advertising Rules

Montana Rules of Professional Conduct govern attorney advertising and solicitation.

Lead Generation Restrictions

No Montana-specific lead generation statute for foreclosure defense identified beyond professional conduct rules.

Barratry

Barratry statutes apply. Solicitation of foreclosure-related legal work is restricted.

Montana professional conduct rules prohibit in-person solicitation of prospective clients in vulnerable circumstances.

Legal Aid & Pro Bono Resources in Montana

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Montana Legal Services Association (MLSA)

Free civil legal services for low-income Montanans, including housing and foreclosure defense. Intake by phone statewide.
mtlsa.org →
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HUD-Approved Housing Counselors

Free, federally funded housing counseling agencies in Montana. Services include loan modification applications, mediation preparation, and loss mitigation guidance.
Find a counselor in Montana →
📞

HUD Housing Counseling Hotline

Free foreclosure prevention counseling.
1-800-569-4287 →
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Montana Legal Services Association (MLSA)

Free legal assistance for low-income Montanans statewide.
1-800-666-6899 →
📞

Montana Housing

State housing programs and mortgage assistance referrals. The Homeowner Assistance Fund (HAF) is closed to new applications.
406-444-3040 →
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Montana Attorney General Consumer Protection

Report mortgage fraud and consumer protection violations.
406-444-4500 →
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Montana 2-1-1

Statewide referral service for housing, utility, and social service assistance.
2-1-1 →
📋

State Bar of Montana Lawyer Referral Service

State bar lawyer referral service.
montanabar.org →
🎓

Montana Justice Foundation / Pro Bono Program

Coordinates pro bono legal representation through the Montana Justice Foundation and the State Bar of Montana.
mtjustice.org →

Find Help in Montana

We maintain a verified directory of free and low-cost help providers in Montana. All are government-approved or federally funded.

10 HUD-approved housing counselors Free foreclosure prevention counseling 1 Legal aid offices Free legal representation for qualifying homeowners 39 Credit counseling agencies DOJ-approved pre-bankruptcy credit counseling 45 Debtor education providers Required post-filing debtor education courses

Browse all 95 providers in Montana →

National Foreclosure Guides

These guides explain foreclosure at the federal level — homeowner rights, available options, and recommended steps at each stage. They apply in every state, including Montana.

Facing Foreclosure?

Overview of the process, available options, and free help resources

How to Stop Foreclosure

Immediate options — forbearance, modification, legal aid, bankruptcy

Your Rights in Foreclosure

Federal protections under CFPB Regulation X and loss mitigation rules

How Foreclosure Works

Stage-by-stage walkthrough from missed payments to sale

Behind on Your Mortgage?

Options for borrowers who have missed or expect to miss a payment

Bankruptcy & Foreclosure

How Chapter 7 and Chapter 13 can stop or delay foreclosure

Montana Distress Data

The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to Montana homeowners:

Foreclosure Filings

National trend

National foreclosure filings. Montana mainly uses non-judicial foreclosure (trustee's sales outside court).

FHA mortgage delinquency

FHA delinquency rate

Share of FHA loans at least one payment behind, from the Mortgage Bankers Association's quarterly survey.

Foreclosure volume

Foreclosure starts & completions

Monthly foreclosure starts and completions from ATTOM Data Solutions.

Newly late mortgages

Current to 30 days late

Share of mortgages moving from current to 30 days past due, from Cotality (formerly CoreLogic).