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The Kansas & Missouri Foreclosure Process – What you need to know

Kansas City Foreclosure Process

Foreclosure is the legal process that lenders use to take back property securing a loan after the borrower stops making payments.   As someone who deals with those within a foreclosure almost daily, just realize a foreclosure is not the end.  In many ways, it really a new beginning.

The Kansas City Foreclosure Process Basics

Depending on which state the house resides in – Kansas or Missouri – the foreclosure process takes on different steps and legal proceedings.   In Kansas, the foreclosure process follows the path of a judicial sale.  In Missouri, the foreclosure is considered a power of sale.

Kansas Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • As a borrower under foreclosure, you will be served from the court demanding payment.
  • Typically, you have 30 days to bring payment to court to avoid foreclosure.  In many cases, the timeline can be extended.
  • If payment is not tendered, a judgment will be entered and the lender can request the sale of your property.  Sales typically come in the form of court house step auctions.
  • After the sale of the home at auction, you, as the original title holder, as redemption option protections by Kansas Law.  Redemption protections allow you any where from 3 months to a year to repurchase the property from the lender or person who purchases the home at auction.
  • Contact us for more details on Kansas Judicial Foreclosure should have any questions.

Missouri Non Judicial Foreclosure – Power of Sale

  • Under Power of Sale in Missouri, a mortgage lender serves you with papers demanding payment directly.   As Compared to Kansas, the courts are not required.
  • The lender will establish a waiting period for the loan to be paid up to date.
  • Without payment, the lender can sell the property.  A deed of trust is drawn up and the property is transferred to a trustee.  Control of your property is transferred to a trustee.
  • The trustee then will typically place the property for sale typically at a public auction.  Public notice must be provided by the trustee prior to sale.

After A Kansas or Missouri Foreclosure Auction

After a foreclosure is complete, the loan amount is paid off with the sale proceeds either by the lender themselves (if no one purchases the property) or by a third party.  If the sale of the property at auction isn’t enough to pay off the loan, a deficiency does exist.  A judgment  may be issued against the borrower.  This is typically not the case, but public record will show the status of optional right procedure the lender claims against the borrower.  A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.

Generally speaking, it is always best to avoid a foreclosure.  For those involved in a foreclosure, we strongly encourage you to be proactive.   Too many times, we see owners that simply throw in the towel when facing foreclosure.   Contact KC Property Guys .  We can help.  If your property has not sold at auction, it is not too late!   We have many options for those facing foreclosure.  We can out right buy the home or help negotiate discounts off the amount owed to avoid having to carry out a foreclosure.  We can improve the home with our Assist to Sell program to help you get top dollar.

About KC Property Guys

KC Property Guys – www.TheKCPropertyGuys.com are the original cash home buyers in Kansas City.  KC Property Guys buys and sells 30-40 homes per year in the Kansas City Metro Area.  We provide quick close cash options for Kansas City Homes and Assist to Sell – equity financed home improvements for those needing home improvements prior to selling. Get in touch today!