-Â Judicial Foreclosure Available: Yes
-Â Non-Judicial Foreclosure Available: No
-Â Primary Security Instruments: Mortgage
-Â Timeline: Typically 120 days
-Â Right of Redemption: Yes
-Â Deficiency Judgments Allowed: Yes
In Kansas, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
The notice of the time and sale must be advertised once a week for three (3) consecutive weeks, with the last publication being no more than fourteen (14) and no less than seven (7) days before the scheduled date of sale. Notice of the sale must also be sent to the borrower within five (5) days of the first advertisement.
Unless otherwise ordered by the court, the sale is typically held at the courthouse of the county in which the property resides. The sale is by public auction to the highest bidder, who will receive a certificate of purchase. After the sale is confirmed, the winning bidder will be entitled to receive a sheriff’s deed, which will vest good and perfect title to the foreclosure bidder, once the borrowers right of redemption has expired. The borrower typically has twelve (12) months from the date of the foreclosure sale to redeem the property.
Lenders may sue to obtain a deficiency judgment for the difference between the foreclosure sale price and the amount due on the original mortgage.
While I agree that most of this information regarding the rules of Kansas are correct – there are some slight differences when it comes time to really do a short sale or as above stated – a sale at auction… In most cases I see on my desk, as I am the broker owner of a local office that specializes in preforeclosure and short sale options, only allow for 3 months to redeem after the sale. In most cases I see, there is less than one third of the original loan paid and therefore most lenders request a 3 month period for this reason. I am not an attorney! I just do this all the time… so – for us investors out there – it makes it a bit faster to get a return on our money if we bid at the auction… Personally, I try to get to the owners and lenders far ahead of the sale date – and sites like this have really helped me put together some nice packages for my sellers, buyers and lenders.
I even get more listings now than I ever had simply by offering sellers alternative listing options like a flat fee MLS listing to save them money they might not otherwise have if they had to pay full price commissions… I know – I know… don’t get pushy with me about discount services here folks… for some of my clients, $500 may be all they have – if that at all… so before you get mad and say I am cheapening the market for real estate services – your just plain wrong. We work hard and still market each of the homes we list – but we offer a “menu of services” as it is for these types of customers, and in some cases do not get paid at all until closing.
In Kansas – I like the preforeclosure and tax sales.. its just easier for me to get a good deal and make everyone happy most of the time… other times – going to the auction is the only way a lender will realize where they are at now…
Hi eric,
Thanks for the updated information out there in Kansas. Don’t worry about us…flat fee brokers make sense to me.
Keep it going..sounds like you have something in the Midwest!