In the state of Kansas, like many other US states, only judicial foreclosures are allowed to take place. This also tells us that the primary instrument for security is the Mortgage Lien. This is what secures the underlying loan and indicates that Kansas is a lien theory state. In this legal document the property acts as security for the loan, and no power of sale clause is allowed to be present in the document. Typically this process takes 120-140 days.
As non-judicial foreclosures are not allowed to take place the borrower has rights of redemption and the lender is allowed to sue for a deficiency judgment. This type of judgment allows the lender to go to court to recover any shortfall between the sale of the property and the amount of money owed to them.
The notice of sale of the property has to be advertised for three consecutive weeks, unlike most states where this is actually 4 weeks. Once all the required notices have been posted the sale may take place and is generally an auction, where the highest bidder wins. This is a public auction and unless otherwise ordered, takes place at the county courthouse in the county where the property is situated.
If the property is purchased at the auction the highest bidder receives a certificate of purchase and a Sheriff’s deed. These vests the title of the property to the new owner, but it is interesting to note that the borrower who was foreclosed upon has rights of redemption for 12 months from the date of the sale. In order to redeem their property they will have to pay the delinquent debt, plus any costs from the foreclosure, and a judicial foreclosure can cost as much as $50 000, it is a legal process, and legal processes are expensive.