A foreclosure is the process in which a person is removed from a property as the result of not paying the mortgage on the same. This page will address only judicial foreclosures, and more specifically Kansas Foreclosures. It will not discuss Missouri non-judicial foreclosures, which are referred to as Trustee Sales. More information about these types of sales can be found on this webpage.
Frequently Asked Questions
There are no statutory notices required so looking merely at the law, the foreclosure could be filed as soon as the loan is one day late. With that being said, most mortgages will provide a notice and cure period or period of time after a borrower does not pay before a foreclosure action can be filed. Therefore, it is important to allow review the mortgage carefully before proceeding with a foreclosure.
A foreclosure is a court proceeding so the time can vary greatly depending on what response is received from the court. If there is no response and everything goes smoothly, it may be resolved within six months. On the other hand, if the borrower fights the foreclosure it may take years to get the property sold.
Redemption rights are the rights of the borrower and other parties having liens against the property to redeem or purchase back the property following the foreclosure sale. The redemption period in Kansas is usually three months but can be as long as twelve months. During this period the borrower can stay in the home, rent it, or sell the redemption rights to a third party. If the home is redeemed, the foreclosure purchaser gets back the money he or she paid, plus some interest.
A foreclosure will only eliminate liens that were filed after the lien that is foreclosing and that have notice of the proceedings. In other words, if a first mortgage holder forecloses, it would wipe off the second mortgage (assuming the second mortgage was named in the foreclosure). On the other hand, if the second mortgage forecloses, the sale of the property would be subject to the first mortgage, which would remain on the property.
The remedy for a lower lienholder is to redeem the property as discussed above. In other words, if the property is worth more than the first lien, the second lienholder can buy it. If it is not worth more, than the lien did not have any value anyway. Because this is the recourse, a second or later lien is only eliminated if it is named in the foreclosure so as to have knowledge of its rights to redeem and a chance to claim that its lien was superior to the foreclosing lien. Therefore, it is possible for a later filed lien to remain with the property.