Understanding the Foreclosure Process in KS and MO

Understanding the foreclosure process in KS and MO is an important part of navigating your own home foreclosure.

Foreclosure house
Foreclosure for sale

What is foreclosure anyway?

Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.

Foreclosures can be scary and your first instinct may be to avoid dealing with it, but that might not be your best solution.

When you know how foreclosure in KS and MO works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.

The Basic Stages of A Foreclosure

There are a few stages that are important to any foreclosure process and foreclosures are regulated by state laws so the process varies slightly from state to state.

Some states require a judicial foreclosure which means that the court must be involved in the process, while others are non-judicial so there is no court or judge involved. The KS side of Kansas City follows KS judicial process, while the MO side follows a non-judicial process.

In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.

Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Non-Judicial Foreclosure:

  • The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
  • After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The trustee can then sell your property to the lender at a public auction (notice must be given).

Anyone who has an interest in the property must be notified during either type of foreclosure. For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Auction?

Understanding the foreclosure process will also help you know what to expect following the auction. After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.

Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.

Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.

Generally, it’s in your best interest to avoid a foreclosure as this can impact your life for many years to come. Instead of avoiding the situation, call your lender and ask for help, or reach out to Kansas City home buyers like us at Mastiff Home Buyers to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.

Experienced home buyers 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. Connect with us by calling 816-535-0076 or through our contact page to have us walk you through the specific foreclosure process here locally in Kansas City .

Angel CEO Mastiff Home Buyers

If you need to sell a property near Kansas City , we can help you.

We buy houses in Kansas City KS and MO like yours from people who need to sell fast.

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Another Foreclosure Resource For Kansas City KS and MO HomeOwners: