Understanding the foreclosure process in Kansas is an important part of navigating your home foreclosure.
Before we dive in though…
What is a home foreclosure anyway?
A home foreclosure is a legal process for lenders to take possession of a property, generally after the borrower stops making payments.
Foreclosure is not fun, but know that it is not the end of the world for you. Knowing how foreclosure works in Kansas gives you the knowledge on what steps to take during the process and how to best come out with the end result.
Basic Stages of a Foreclosure
Foreclosures work differently depending on the state, and the process involves a few important stages. Two ways used to foreclose on a property, depending on the state, are judicial sale or power of sale.
Connect with us by calling (316) 413-8314 or through our contact page so we can help you walk you through the foreclosure process here locally in Wichita Kansas.
With either option, foreclosures do typically go to court after a homeowner has missed payments for 3-6 months. While not always, lenders typically deliver many notices to homeowners that are overdue or behind on payments.
Under Judicial Foreclosure:
- A suit will be filed in the court system by your mortgage lender.
- The court will demand payment by mailing a letter to you.
- To avoid foreclose on a valid loan, sometimes extended, you will have 30 days to bring payment to the court.
- A judgment will be entered and the lender can request the sale of your property, usually through auction, if you do not pay during the specified payment period.
- The local sheriff serves an eviction notice and forces you to vacate the property immediately once the property is sold.
Under Power of Sale (or Non-Judicial Foreclosure):
- Subject to judicial review, going to court is not required if your mortgage lender serves you with papers demanding payment.
- A deed of trust is drawn up after the established waiting period has elapsed, and control of your property is transferred to a trustee.
- The lender can purchase your property from the trustee a public auction (notice must be given).
Regardless of the type of foreclosure, anyone who has an interest in the property must be notified. An example would be a contractor or bank would be entitled to collect from the proceedings of an auction with liens against your property.
What Happens After A Foreclosure Auction?
Following a completed foreclosure, the loan amount is paid off with the sale proceeds.
If the sale of the property at auction isn’t enough to pay off the loan, sometimes a deficiency judgment may be issued against the borrower. A deficiency judgment is where the bank requests and receives a judgment against you, for the remaining funds owed to the bank after the foreclosure sale.
In a deficiency judgment, some states allow the full loan amount to be assessed against the borrower, while others limit the amount owed to the fair market value of the property at the time of sale. A great online resource lists the state by state deficiency judgment laws, providing the differences by state.
It is best to avoid a foreclosure option in general. A great alternative is to call your mortgage lender or work with a reputable real estate firm like us at Sell Now Homes Wichita to assist you in negotiating discounts off the amount owed and to avoid needing to carry out a foreclosure.
investors who are experienced can help you by negotiating directly with banks to lower the amount you owe in a sale, or even eliminate it, even if your home is worth less than you owe.
If you are in need of selling a property near Wichita, we are here to help you.
We buy houses in Wichita Kansas like yours from people who need to sell fast.
Give us a call now at (316) 413-8314 or
complete our Get My Fair Cash Offer form today.
Another Foreclosure Resource For Wichita Kansas HomeOwners: