According to RealtyTrac’s data, currently there are 245 sheriff foreclosure sales in Kansas City. Foreclosure sale auctions give you an opportunity to purchase a foreclosed property at 30% to 50% of the market value of a Kansas City property. With prices so affordable right now, bargains at sheriff foreclosure sales should be pursued quickly because there is a lot of competition for these properties. If you are lucky to have your bid accepted, then you know you are getting a great deal. There are also 2,238 bank owned REO properties available, and 131 homes are in default and may be heading to foreclosure giving investors and buyers more future opportunities to purchase foreclosed houses.
Kansas Foreclosure Laws
It is important to understand the Kansas foreclosure laws and the foreclosure process. Foreclosure is conducted by judicial foreclosure in Kansas, which means the court must approve the sale. The notice of the sale must be published once a week for three consecutive weeks in a newspaper of general circulation in the county where the property is located, with the last publication being no more than 14 and no less than 7 days before the scheduled sale. The borrower must also receive notice of the sale within 5 days of the first advertisement.
The sheriff will generally conduct the sale at the local county courthouse. The highest bidder is awarded the property and receivces a certificate of purchase. Once the court approves the sale, the new owner will receive a sheriff’s deed with good title after the borrower’s right of redemption expires. The borrower has 12 months after the foreclosure sale to redeem the property. So this means if you purchase a foreclosed home at a sheriff’s auction, you have to wait until the redemption period expires to make any repairs, otherwise you may lose your investment if the owner redeems the property from you. Check with a Kansas real estate attorney for more information about foreclosure sales before you attend the auction so you know what you are getting into. Also, do your due diligence by checking home prices so you know how much to bid.
While most foreclosures are good bargains, you need to know the condition of the property so you can take repair costs into account. If you are allowed to inspect the property, it is recommended that you do so because all sheriff sale properties are sold as is. What you see is what you get. You are also responsible for evicting any former owners or tenants that may be living at the property. You may want to drive by to see if the property is vacant.
If you are interest in purchasing foreclosure properties in Kansas City, now is a great time to do so with abundant inventory and low interest rates. You will need cash for the sheriff auction properties and short sale pre-foreclosure properties, but you can finance REO’s. Be sure to have your money all lined up so you can close quickly. Inspect the properties to make sure you know the condition and allow for repairs in your budget. Don”t get caught up in bidding wars. There are plenty of properties available so make sure you don’t overpay and enjoy your bargain property.