Property Mortgage Laws in Kansas

The State of Kansas is commonly referred to as a lien theory state wherein the property is held as guarantee for the loan in question. The document through which the lien is placed on the property is referred to as a mortgage.

Lenders in Kansas pursue a judicial foreclosure process that is followed through court. The court pronounces the final verdict on the foreclosure. A publicly notified sale is then used to sell the property. A complaint, along with a lis pendens (a recorded document that provides public notice about the foreclosure on the property) has to be filed in court.

LEGAL INSTRUMENTS

The legal documents are called the mortgage or the note, and a security agreement in cases of commercial transactions. On occasions, the security agreement is in combination with the mortgage document. To verify the loan and its repayment terms, which are included in the note, a mortgage has to be filed.

TIME PERIOD

Depending on the schedule of the court, it normally takes around 120 to 140 days for a foreclosure that is not contested, to come into effect. If the borrower wishes to contest the action, and if a delay or adjournment of the hearing is being sought; or if the borrower is filing for bankruptcy, the process can be delayed. Foreclosure sales require some notices and they have to be advertised for three successive weeks, once each week at least. The last of these advertisements must appear not less than seven days prior and not more than fourteen days prior to the foreclosure sale. The borrower has to be sent a notice of foreclosure sale no later than five days after it is first advertised. After confirmation of the sale, a deed is issued by the sheriff.

RIGHT OF REDEMPTION

A statutory right of redemption can be made use of in Kansas where a foreclosed property can be reclaimed by the owner upon complete payment of the unpaid loan and costs. The time period that the redemption can be made use of is one year. If a notice has been issued to all concerned parties and after 21 days the court finds that the property has been abandoned or not inhabited in good faith, the period of redemption can be revoked of shortened. The mortgagor can waive the redemption period within the documents of the loan in all cases except in cases of agricultural properties and single or two family residential properties (K.S.A. 60-2414).

DEFICIENCY JUDGMENTS

If, at the public sale, a property is sold for less than the outstanding amount on the primary loan, the lender can get a deficiency judgment. This results in the borrower owing to the lender the difference of the original loan amount and what the property sells for at the auction.

STATUTES

The Kansas Statutes Annotated (K.S.A.), Chapter 60, Article 24 (2410) (Executions and Orders of Sale) govern foreclosures in Kansas State.