Foreclosure Process Overview
Provided by Martin, Leigh, Laws & Fritzlen, P.C.
A foreclosure in Kansas is judicial — meaning that it is administered through the courts. A property can go to sale in as little as 60 days; however, due to the redemption period, a Sheriff’s Deed may not be issued anywhere from three months to 12 months after the sale.
Before a lender forecloses a borrower’s Note and Mortgage, a title search should be conducted. Any liens that appear senior to the lender’s lien should be addressed prior to foreclosure or the purchaser at the sale will take the property subject to the senior lien.
All junior lienholders must be named as defendants in the lender’s foreclosure suit to ensure title is free and clear of liens at the time of the foreclosure sale.
Upon a borrower’s default, a lender can file a Petition for Mortgage Foreclosure with the court. The Petition is then served on the borrower and any other named defendants. If a defendant can not be found, Kansas law allows for service by publication. Once service is obtained, a defendant has 20 days to file an Answer with the court. If the defendants fail to file an Answer, the court will enter a Journal Entry of Judgment. If the borrower files an Answer contesting the foreclosure, parties can litigate the matter and possibly go to trial. Once judgment is entered in favor of the lender, the borrower then has 10 days to pay the amount due before the foreclosure sale can be scheduled.
After the expiration of 10 days from the date judgment was entered, a Notice of Sheriff’s Sale is published in a local newspaper in the county the property is located once a week for three weeks. Between seven and 14 days after the final notice of sale is published, a Sheriff’s Sale is held. The lender provides the opening bid which is usually the full amount owed to the lender by the borrower. The person with the highest bid at the sale receives a Certificate of Purchase.
In Kansas, the redemption period for the borrower begins on the sale date, but the length of time varies. If more than one-third of the principal balance of the loan has been paid, the borrower has 12 months to redeem the property. If the borrower has paid less than one-third of the principal balance of the loan, the borrower has only a three-month redemption period. To redeem, the borrower has to pay the amount of the highest bid in addition to applicable interest and other fees.
Once the borrower’s right of redemption expires and the property has not been redeemed, a Sheriff’s Deed will be recorded evidencing the transfer of ownership of the property.
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