Kansas Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Security Instruments: Mortgage
Right of Redemption Period: 3-12 Months
Deficiency Judgments Allowed: Yes
Time Frame: 120 Days
Public Notice: Petition
Kansas is considered to be a lien theory state, which means that property acts as security for a borrower’s loan. In the state, the document that places the lien on a property is called a mortgage. If a lender defaults on their loan, their property may be foreclosed. However, only judicial foreclosures are allowed in the state.
In Kansas, the right of redemption period, or the time frame a borrower has to reclaim the property by satisfying the default in full, is between three (3) months and one (1) year, depending on the size of the property. The state allows lenders to pursue a deficiency judgment in the event that the foreclosed property is sold at auction for less than the amount that is owed on it. If the lender seeks a deficiency judgment, the borrower will be responsible for paying the difference between the default and the amount the foreclosed property was sold for.
Types of Foreclosures Allowed in Kansas
Kansas statute allows for judicial foreclosures on defaulted property. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
To start the process, the lender must file a lawsuit against the borrower along with a Lis Pendens, which is a recorded document that provides public notice that the property is being foreclosed. The court is responsible for issuing the final judgment of foreclosure.
Once the order to foreclose has been issued, a Notice of Sale must be published once a week in a local newspaper where the property is located for three (3) consecutive weeks, with the last publication being printed no more than fourteen (14) days and no less than seven (7) days before the scheduled date of the sale. A copy of the notice must be sent to the borrower no more than five (5) days after the first publication.
The sale will take place at the courthouse in the county where the property is located. The property will be auctioned off to the highest bidder, who will receive a certificate of purchase. Once the sale is confirmed, the winning bidder will be issued a sheriff’s deed, which will serve as a title to the property, once the borrower’s right of redemption has expired. The borrower will have up to one (1) year to reclaim the property.
If the property sells at auction for less than the amount that is owed on it, lenders have a right to seek a deficiency judgment to claim the remaining balance on the defaulted loan. The borrower will be responsible for the remaining balance and the lender must sue the borrower in order to obtain the deficiency judgment.
Hiring a Foreclosure Attorney in Kansas
These tough economic times have made it difficult for many homeowners to keep up with their mortgage payments. Many borrowers that were previously able to pay their mortgages on time are now struggling just to make ends meet. Although being issued a notice of foreclosure is frightening, the important thing to remember is that it is not final. The homeowner still has a chance to reclaim the property. If you have been issued a notice of default in Kansas or have fallen behind on a few payments, seek the help of a top team of foreclosure lawyers to fight for your home.
When you work with a foreclosure attorney, you can rest assured that your case will end with the best possible outcome. Your paralegal will work diligently to come up with a plan of action based on your financial needs to present to your lender in lieu of foreclosure. Some examples include mortgage modification, short sale, refinancing or even a temporary halt in payments. Foreclosures usually cost the lender money, so if a plan that benefits all parties can be attained, the lender will most likely agree to it.
Regardless of your reason for defaulting, foreclosure attorneys will help you to fight for your home. Repossession is not always the answer. Turn to a leading team of foreclosure attorney in Kansas right away to get started on your case and protect your home from being seized.