In Kansas, consumers review possible methods of avoiding foreclosure. However, they need an attorney to guide them to prevent common errors that cost them. The following is a list of questions that an attorney answers about Foreclosure in Lawrence KS.
Is Bankruptcy a Permanent Solution to Prevent Foreclosure?
No, bankruptcy is not a permanent solution to prevent foreclosure. It is a temporary option to stop it. When a bankruptcy claim is submitted to the court, the county provides an immediate automatic stay. The stay stops the foreclosure process while the claim is evaluated by the court. The foreclosure is stopped for about three or four months. However, the lender may petition the court to lift the stay. If the lender is successful, the foreclosure process restarts and the property is seized.
What Happens to Tenants When a Rental Property Enters Foreclosure?
Under the Protecting Tenants at Foreclosure Act of 2009, all leases are enforced. The foreclosure allows the tenant to complete their lease throughout its full term. Any tenant that rents properties on a month-to-month basis acquires at least a ninety-day notice before they must vacate the premises. If the property is sold, the buyer must give the tenant a ninety-day notice if they intend to live inside the property themselves.
How Does a Deed in Lieu of Foreclosure Work?
The process allows the consumer to surrender the deed for their property to the lender. Upon receipt of the deed, the lender cancels out the mortgage loan. However, if the lender sells the property and doesn’t recover the full balance, they can file a lawsuit in some areas. After a short sale, the consumer is still responsible for any outstanding balance incurred.
What Happens During a Short Sale?
A short sale is a sale in which the consumer accepts a value lower than what they owe. These sales take place quickly and eliminate a large portion of the debt. Investors and banks are more likely to purchase the property through these opportunities.
In Kansas, foreclosure gives lenders a legal avenue to seize and sell a residential property. The process involves placing the property into an auction for a quick sale. However, this process doesn’t guarantee complete settlement of the debt. Consumers who need help with Foreclosure in Lawrence KS visit Joewlaw.com today.
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