Kansas Foreclosure Law
In Kansas, lenders may foreclose on a mortgage in default by using the judicial foreclosure process. A lawsuit must be filed to obtain a court order to foreclose. Upon receiving all claims, the court will make a judgment in favor of the lender and against the borrower for the balance due. The sheriff is directed to auction off the property to the highest bidder. This usually takes one hundred twenty days (120) to foreclose and mortgage is the primary security instrument.
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 borrower scheduled date of sale. Notice of the sale must also be sent to the borrower within five (5) days of the first advertisement.
The sale must be at the courthouse in the county where the property resides although the judge has discretion to set a different venue. The sale is by public auction to the highest bidder. The sheriff will at once give the buyer at the foreclosure sale a certificate of purchase. The certificate of purchase is all the buyer gets until the borrower's redemption rights expire.
The foreclosure sale must be confirmed by the court after the sale. The court has discretion to refuse to honor the sale and require a minimum bid or force the crediting of the market value against what was owed on the loan. Once confirmed, a sheriff's deed can be issued and it will vest good and perfect title in the foreclosure buyer. However, the court may specify as a condition of confirmation that the redemption period may run first, which is 12 months unless reduced.
A judgment can stay un-enforced up to five years, at which point it becomes dormant, but is subject to revival for another two years. Afterward the judgment is barred from enforcement and the court records must reflect that fact.
Deficiency Judgment
A deficiency judgment may be obtained for the difference between the foreclosure sale price and the amount due on the loan. Deficiencies are common. However, the court may refuse to confirm a sale where the price is not equal to the judgment, which helps prevent abusive deficiency judgments.
Redemption
The borrower can redeem any real property sold at foreclosure at any time up to 12 months from the date of sale by paying the holder of the certificate of purchase the purchase price plus costs and interest. If the judge finds the property is abandoned or not occupied in good faith, then the redemption period is six months. Lien creditors must undertake redemption within three months. The former borrower's redemption period may be reduced if the lien is only one-third of the original indebtedness. The on year goes down to six months. However, the court may conduct a hearing on market value, and if the debt is one third of the court-perceived market value, then 12 month for redemption may be allowed before the court will confirm the sale.
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