Kansas Foreclosure Laws

Kansas foreclosure laws should be administered through judicial proceedings. Legal process must be followed by the lender in order to reclaim his or her losses. The lender must file a Notice of Default against the defaulted borrower which needs court appearance. On the other hand, the borrower or homeowner has 20 days to make necessary actions to settle the complaint filed against him or her. Typical timeline of foreclosure is 6 months.

When the lender decides to pursue a foreclosure on a distressed property, he or she can file lis pendens, a lawsuit filed in court which provides a public notice stating that there is an existing dispute on a property, against the defaulted borrower. The defendant is given 20 days to respond. If the judgment is in favor of the lender, the borrower is given 10 days to pay the defaulted amount. Failure to pay the mortgage loan results to foreclosure sale.

Kansas Judicial Foreclosure

The state of Kansas recognizes only the process of judicial foreclosure. This process requires the lender to file a lis pendens and the issuance of final judgment by the court on the foreclosure. Fair treatment is given to both the lender and borrower. The borrower is given enough time to fulfill his or her legal obligations to the lender; however, failure to do so results to the pursuance of foreclosure sale and transfer of property to the winning bidder.

The foreclosure sale is conducted similar to a public auction. The lender states the opening bid which is usually the total amount owed by the borrower. The highest bidder wins and receives the Certificate of Sale for the property purchased.

Statutory right of redemption is obtainable. However, the redemption period depends on the amount that has already been paid by the borrower in the mortgage loan. A redemption period of up to one year is granted if the borrower has paid at least 1/3 of the mortgage loan. That payment should be made within the foreclosure sale period. On the other hand, if the borrower has paid less than 1/3 of the mortgage loan, a redemption period of up to 3 months is given. To redeem the foreclosed property, the borrower has to pay, in full, the amount of the unpaid loan and any additional costs or interests that has accrued over time.

The lender may file for deficiency judgment if the property was sold for less than the amount of the mortgage loan. This means that the borrower should pay the difference between the amount of property sold and the amount of the original loan to the lender.

Notice of Sale in Kansas

Notice of Sale shall be published in a local newspaper and should run in 3 weeks. The final Notice shall be published one to two weeks before the date of the public auction.