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Most foreclosures are filed when a borrower becomes three to four months behind in his or her payments. In most cases, the homeowner is aware that a foreclosure is imminent; however, an attorney may be able to help the borrower postpone or avoid foreclosure, depending on his or her situation.
Kansas is known as a judicial foreclosure, which means that the court has to issue the final decree of judgment. When the lender files the complaint in court, a lis pendens is also filed. This is a document that provides public notice that the property will be sold and is in foreclosure.
There are several notices that must be taken care of in order for a foreclosure to proceed. The notice of sale must be advertised in the county newspapers for at least three weeks, consecutively. The last time the notice appears in the newspapers must not be less than seven days or more than 14 days from the sale date. The borrower must also be sent a notice of sale within five days of the first time the advertisement is published.
All foreclosure sales are done at the courthouse. In some cases, the primary lender will bid on the property at the amount of the loan; however, the second mortgage holder generally will not be present. This means that anyone else who bids on the property will be paying the first mortgage off in full.
The borrower can seek adjournments and delays in the process. Filing bankruptcy will also delay the foreclosure process. An attorney can provide more information on these options.
Kansas does allow for the borrower to pay the loan in full, plus costs, to redeem the property. This can be done within one year of the foreclosure sale, but there are some cases in which it might be less. For example, the redemption period is three months if less than one-third of the mortgage balance has been paid.
If the lender files a motion for a hearing at 21 days beforehand and can prove that the property is no longer inhabited or occupied or has been abandoned, the court may eliminate or shorten the redemption period. The mortgage paperwork may waive the redemption period unless it is an agricultural or single- or two-family residential property.
A deficiency judgment can be issued by the court when the property sells at a foreclosure auction for less than the value of the loan. The judgment can be used by the lender to hold the borrower responsible for the difference.
Sometimes, but not always, there are legal options available to homeowners facing foreclosure. Understanding which of these options will produce positive results is something that should be discussed with an experienced attorney. He or she can help a homeowner determine how to proceed.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.