Mississippi Statutes of Limitations
MISSISSIPPI STATUTES REGARDING STATUTES OF LIMITATION ETC:
Debt Collection Statute: No specific state statute.
Due on Sale: Miss. Code Ann §75-1-208. Option to Accelerate at Will. The option is to be exercised only in the good faith belief that the prospect of payment or performance is impaired. A provision “providing that one party in interest may accelerate payment or performance or require collateral or additional collateral ‘at will’ or ‘when he deems himself insecure’ shall be construed to mean that he shall have power to do so only if he in good faith believes that the prospect of payment or performance is impaired.” “The burden of establishing lack of good faith is on the party against whom the power has been exercised.”
Statute requiring good faith belief that loan had become insecure prior to acceleration does not apply to “default-type” acceleration clause, under which default is conditioned upon occurrence of event within control of debtor. [Peoples Bank and Trust Co. v. Cermack, 658 So. 2d 1352 (Miss. 1995)] Escrow Accounts: Real estate loans may include provisions concerning liens, payments of taxes and insurance premiums and similar charges, and advance payments of taxes and insurance premiums and similar charges.
Escrow Administration: There is no state statute prohibiting an escrow cushion. However, there is a statute prohibiting the servicer from disclosing the expiration date of the insurance policy. RESPA CONTROLS HOW MUCH CUSHION CAN BE HELD IN ESCROW ON A FEDERALLY INSURED LOAN OR A LOAN BY A FEDERALLY CHARTERED BANK.
Disclosure of expiration date: Miss. Code Ann. §83-13-10(1). When a real property deed of trust or mortgage or a lending agreement in connection with a loan on real property provides that a mortgagor or borrower shall furnish insurance upon the mortgaged property, the mortgagee, assignee or creditor shall not disclose expiration dates or other policy information to other persons or parties, directly or indirectly, and such other persons or parties shall not request the disclosure of such information, so as to enable any person or party to solicit said insurance or any renewal thereof, without first obtaining the written consent of the policyholder for such disclosure to be made when the mortgagee, assignee or creditor has been advised in writing by the insurer or its agent that the insurance on the property will be cancelled or will not be renewed. (2) Willful violation of this section by any mortgagee, assignee or creditor, or by other persons or parties who may request the disclosure of such information from such mortgagee, assignee or creditor, shall be punishable by a fine not to exceed $500 for each violation.
Hazardous Waste: Miss. Code Ann. §§17-17-1 et seq., 49-17-1 et seq., and 49-17-401 et seq., impose on an owner of real property substantial liability for clean up of contamination. Sale contracts and loan documents should include environmental affidavits and indemnities. There is no state statute prohibiting environmental affidavits and indemnities from borrower to lender. NOTE: It is not usual and customary to have a hazardous waste survey done on residential property as this should have been done by the developer, however, on commercial property or rural property, you as the buyer, should have a hazardous waste survey done or get a title policy with an endorsement for hazardous waste coverage.
Insurance: Miss. Code Ann. §83-13-9 sets forth the form of a mandatory mortgage clause to be incorporated into fire insurance policies taken out or renewed by mortgagors. This clause requires notice by the mortgagee to the insurance company, when there is a change in ownership, use or occupancy of the property, including use for more hazardous purposes. The insurance company may also be subrogated to the rights of the mortgagee under certain circumstances.
Insurance Losses: Miss. Code Ann. §83-13-7. Mortgagees paid in order of priority.
When, by an agreement with the assured or by the terms of a fire insurance policy taken out by a mortgagor, the whole or any part of the loss thereon is payable to the mortgagee or mortgagees of the property for their benefit, the company shall, upon satisfactory proof of the rights and title of the parties, in accordance with such terms and agreement, pay all mortgagees protected by such policy in the order of their priority of claim, as their claims shall appear, not beyond the amount of which the company is liable. Such payments shall be, to the extent thereof, payments and satisfaction of the liabilities of the company under such policy.
Interest on Impound Accounts: No state statute requiring interests to be paid on the funds in an escrow account. Follow Instrument language. Lawyers and Realtors in Mississippi are not allowed to have interest on escrow accounts. Lawyers are required to set up escrow accounts in accordance with IOLTA which states that the bank will forward all interest earned to the Mississippi Bar Association to fund poverty law centers.
Interest Rate Increases: There is no state statute on point regarding interest rate increases. Interest rates are governed by usury statute and may not be excessive. Follow instrument language. Most notes and deeds of trust now have a ‘no interest rate change’ and a ‘no prepayment penalty for early payoff of the loan’. Be sure to check your documents when you borrow money to be sure that these clauses are included.
Late Charges: Miss. Code Ann. §75-17-27. A late payment charge, not exceeding $5 or 4 percent of the amount of any delinquency, whichever is greater, if contracted for in writing, shall not be considered a finance charge, but no such charge shall be made unless such delinquency is more than 15 days past due; provided, however, that such late payment charge may be collected only one time on a specific installment and no late payment charge may be collected on a partial payment resulting from the deduction of a late payment charge from a regular scheduled payment. On loans of $100,000 or less having a stated maturity of five years or less, such late payment charge shall in no event exceed $50.
Mortgage Insurance Cancellation: No statute or point regarding mortgage insurance cancellation. Generally, once your loan balance is less than 80% of the value of your property, you can ask in writing for the lender to remove the mortgage insurance from your payment. You will be required to reimburse the lender for the cost of the appraisal and possibly other costs. This application is dependent upon the value of the property at the time that you request the removal of the MIP. If your property is worth less than you paid for it because of the devaluement of property in your area, the appraisal of the current value controls.
Mortgagor Request: No state statute regarding time frame.
Non-Resident Landlords: All residential leases are now governed by Miss. Code Ann. §89-8-1 et seq.; except for, agricultural and commercial leases. Any agreement, oral or written, for the rental of real property as a dwelling place will be bound by this statute. A landlord or tenant may not agree to waiver or otherwise forego any of the rights, duties or remedies under this chapter.
Non-Sufficient Funds Fees: Miss. Code Ann. §97-19-81 allows actual amount of service fee up to $15.
Notice of Default/Acceleration Requirements: Miss. Code Ann. §89-1-59 provides for reinstatement by payment of all default plus fees/expenses, rather than amount of accelerated. Fair Debt Practice Act would apply.
Payoff Statement Requests: Terms of contract should be reviewed.
Prepayment Penalties: Miss. Code Ann. §75-17-31 as amended sets out pre-payment penalty limits for prepayment of any note or evidence of debt secured in whole or in part by lien on certain type of real property.
Property Inspections: Terms of contract should be reviewed.
Record Retention: Miss. Code Ann. §81-5-7 deals with the preservation of records by bankers, i.e., unpaid balances and Miss Code Ann. §§81-18-21 and 35 deal with certain records under the Mississippi Mortgage Consumer Protection Act. Certain exceptions may be applicable.
Release of Mortgage or Deed of Trust Upon Satisfaction: Miss. Code Ann. §89-5-21(2) provides that any mortgagee or assignee must cancel a paid-in-full mortgage or deed of trust within one month after a written request, or be liable for statutory damages of $200.00 or other damages not to exceed the amount of the mortgage or deed of trust.
REO Condition Disclosure: Sellers disclosures required by Miss. Code Ann. §§89-1-501 and 509 are exempted by Miss. Code Ann. §89-1-501(2)(b) as to transfers by a mortgagee or beneficiary of a deed of trust of property acquired through foreclosure or deed-in-lieu of foreclosure.
Resident Office: Miss. Code Ann §81-18-5 points to an in-state place of business as one (of several) factors to be determined as to whether a corporation is subject to the Mississippi Mortgage Consumer Protection Act effective July 1, 2000. The maintenance of an office is also one of several factors in determining whether certain activities constitute the doing of business. Miss. Code Ann. §79-15-01.
Sale of Servicing: Following statute should be considered specifically. Miss. Code Ann. §81-18-5.
Super Liens: Priority of liens are generally established in order of filing. Tax sale; if not redeemed by end of two years, a tax deed may be issued to a purchaser and if the tax sale was without flaws, purchasers gets good title. CAUTION: We suggest that you never purchase a tax deed from the person to whom it was given by the Chancery Clerk. There are too many ways that the title can be faulty. Require the holder of the Tax Deed to file a suit to confirm the tax title in Chancery Court. Condominium assessments are found in Miss. Code Ann. §89-9-21 and should be in accordance with a recorded declaration of restrictions.
Taxes: Taxes are due and payable on January 1, and are delinquent after January 31. Some cities may have different deadlines and inquiries should be made of city taxes collector as to their deadlines and if collected by county.
Toll-free Telephone Requirements: No state statutes appear on point.
Vacant Property Requirements: No state statute. See federal rules and regulations. Property may be subject to special assessments for clean-up by local authorities, if not maintained by owner. In Jackson, this can be expensive as the city usually adds a $1000.00 fine to the cost of the cleanup.
Water Liens: No specific state statute.