Facing Foreclosure In Kansas City?


Facing foreclosure in Kansas City is difficult to process for any homeowner and should not be faced alone. Let us help you through this.

Do you need help with your foreclosure?

Has an adjustable-rate mortgage caused you to fall behind on your mortgage payment? Did you recently lose your job and are struggling to make on-time payments? Are you looking for help from an experienced professional so you can save your credit from foreclosure in Kansas City?

If so, you’ve come to the right place!


In this article, you’ll learn the following:

  • 1 What a foreclosure is and how it affects you.
  • 2 How the foreclosure process works in Missouri and Kansas.
  • 3 How to avoid foreclosure in Kansas City.
  • 4 How to prepare to buy another house after foreclosure.
  • 5 How to seek government assistance if you’re facing foreclosure.
  • 6 How we can help you avoid foreclosure in Kansas City.


Let's get started!

What is foreclosure?

Foreclosure is the legal process of repossessing a mortgage or deed of trust in default. The process of foreclosure differs from state to state, but Missouri uses two types of foreclosure, judicial and non-judicial. The state of Kansas, however, uses the judicial foreclosure process.

Effects of foreclosure?

  • 1 Foreclosure can drop your score as much as 200 points, possibly even more, the better you score is.
  • 2 It can take anywhere from 3 – 7 years to recover from foreclosure with assistance from professionals, making on-time payments, and credit repair.
  • 3 Foreclosure can prevent you from recovering quickly because of higher interest rates, limited available credit, bad spending habits, etc.
  • 4 Once payments is more than 30 days past due, your credit score will begin to drop substantially. Every missed payment will continue to reduce your credit score.
  • 5 Most lenders begin foreclosure proceedings when a borrower is 3 – 6 months behind on their mortgage. If you want to stop the foreclosure process, you’ll be required to pay the delinquent amount, lates fees, legal fees, and any other additional costs to reinstate your loan.
  • 6 Any forgiven debt is considered taxable income. The IRS clearly states, “in general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return the year the cancellation occured. The canceled debt isn’t taxable, however, if the law specifically allows you to exclude it from gross income.” Click HERE for more information.
  • 7 The IRS has tax consequences that come into effect once the property has sold. If the property is sold for less than the borrower guaranteed on the promissory note, the balance is reported to the borrower and the IRS on a Form 1099-C, called “Cancellation of Debt” (CODI).

For additional information, consult with an experienced tax professional on your current situation.

Foreclosure process in Missouri

As previously mentioned, the state of Missouri uses two types of foreclosure, judicial and non-judicial.
Judicial foreclosure is the legal process of the lender (mortgagee) filling a lawsuit against the borrower (mortgagor), and no “Power of Sale” is present in the deed of trust or mortgage. Thus, the property is auctioned off to the highest bidder at the local courthouse.
Non-judicial foreclosure, on the other hand, is when the lender (mortgagee) exercise their legal right to foreclosure on a borrower (mortgagor) and a “Power of Sale” exists in the mortgage or deed of trust. Thus, giving the lender legal right to sell the property without filing a lawsuit.

Power of Sale Foreclosure Guidelines

Occasionally, mortgages or deeds of trust contain a power of sale clause with specifics as to the terms of the sale. If that is the case, it is advised to follow the guidelines as outlined in the clause. Otherwise, a non-judicial foreclosure may proceed as follows:
  • 1 A “Notice of Sale” must be mailed to the borrower’s residence 20 days prior to the sale date. The notice must also be published in the local newspaper for 21 consecutive days.
  • 2 A sale is conducted by the trustee, and anyone including the lender is able to bid on the property. If the lender is the winning bidder, the borrower has 12 months to redeem the property.
Under Missouri law, a borrower has up to 12 months from the foreclosure sale date to redeem the property.

Foreclosure Process in Kansas

Typically, the judicial foreclosure process involves a lawsuit that starts with a summons served against the borrower. If the borrower fails to respond to the lawsuit, the lender gets a judgment by default. Subsequently, a person is appointed to compute the total amount still owed, including interest and attorney fees.

These additional steps must also be followed:

  • 1 A Notice of Sale must be advertised once a week for 3 consecutive weeks. The last publication must be no more than 14 and no less than 7 days before the sale date.
  • 2 A Notice of Sale must be mailed to the borrower’s address within 5 days of the first advertisement.
  • 3 The sale of the property must be held at the local county courthouse unless otherwise specified.

Thereafter, the winning bidder will receive a sheriff’s deed to the property. This deed grants the holder perfect title to the property once the borrower’s right of redemption expires. Under Kansas law, a borrower has 12 months to redeem the property unless there has been an abandonment of the property.

Timeline for a Foreclosure in Kansas City

In Missouri, the timeline for a judicial or non-judicial foreclosure is typically 60 – 90 days from start to finish.

In Kansas, the timeline for a judicial foreclosure is anywhere from 90 – 150 days.

Buying Another Home After Foreclosure

After a foreclosure, lenders require a credit score of 620 or greater to qualify for a conventional loan and at least 580 for an FHA loan. Additionally, there's a waiting period depending on the type of loan you’re qualified for. Refer to the information below for more details.
  • 3 years for FHA loans
  • 7 years for Fannie Mae/Freddie Mac loans
  • 2 years for Veteran Affairs loans
  • 3 years for USDA loans
Note: Lenders not listed above may have a different waiting period, so check with your lender for more information.


Waiting Period

Buying after a foreclosure 5-7 years
Buying after a foreclosure (w/ extenuating circumstances) 3-7 years
Buying after a deed-in-lieu of foreclosure 4-7 years
Buying after a deed-in-lieu of foreclosure (w/ extenuating circumstances) 2-7 years
Buying after a short sale 2 years

How to avoid foreclosure in Kansas City

If you find yourself facing foreclosure in Kansas City, don’t let the problem go unresolved. Below is a list of helpful tips if you find yourself behind on your mortgage and heading to foreclosure.
Recognize the problem and contact your lender immediately.

Contacting your lender allows you time to work out a solution, such as a loan modification. Click here to read more about how loan modifications can be a great way to reinstate your loan.

Be responsive and know your mortgage rights.

Responding to your lender shows them that you care about resolving the issue. You will likely receive several calls or mailers with information about the options you have. It is imperative that you consider all the possibilities and choose the best option for you.

Become familiar with your loss-mitigation options.

Loss-mitigation goes hand in hand with both of the previously discussed steps. Contact your lender for more information.

Contact a reputable housing counselor and manage your spending.

A housing counselor is a great way to get you the help you need to get back on track. Find a low-cost counselor who is experienced with the foreclosure process and can advise you on what steps to take.

Additionally, I cannot stress enough how important it is that you manage your spending. Far too many people fall behind because they do not manage their money. Create a budget and stick to it. If you need help, contact your housing counselor.

Don't be afraid to liquidate your assets.

Weigh your options. Would you rather have a foreclosure on your credit report or sell off some of your assets to get caught up? Liquidating assets can be helpful for you if you fall behind and need cash quickly.

Government Assistance For Homeowners Facing Foreclosure

  • Loan modification, “a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.”

  • Hardest Hit Fund (HHF) Programs. This program helps homeowners stay in their current homes or find a more affordable home to live in.

  • Home Affordable Unemployment Program (UP). If you’re unemployed, you can have your mortgage payments reduced or suspended for 12 months.

  • Principal Reduction Alternative (PRA). If you meet their requirements, you can have your mortgage principal balance reduced.

  • Home Affordable Foreclosure Alternatives (HAFA) Programs. If you meet HAFA requirements, you can receive up to $3,000 following a deed-in-lieu of foreclosure or a short sale.

  • Second Lien Modification Program (2MP). For homeowners with a second mortgage on their property where the first mortgage was modified under the Home Affordable Modification Program (HAMP).

Note: The Home Affordable Refinance Program (HARP) expired on December 31, 2018. Therefore, it is no longer an option.

How We Can Help With Your Foreclosure In Kansas City

If you’re interested in selling because that is your only option, we offer a wide range of services such as short sales and taking over payments for homeowners behind on their mortgage and facing foreclosure in Kansas City.

The benefit to you is debt and stress relief so that you can get your life back on track without worrying about a property that’s causing you financial distress. Because we pay cash, you get to sell your house even if you don't have any equity. We can pay full price or negotiate a short sale with your lender. Eliminating stress and worry from your life over time, price, or credit. At JW Home Buyers, we take pride in the services we provide and how we help homeowners all across the Kansas City metro area. Not only that, but we are also registered with the Better Business Bureau to establish trust with our clients.

For more information, please contact info@ibuyhomesinkc.com or give us a call. We're more than willing to help you during this troubling time.

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