Foreclosure is a legal procedure that enables a lender to recover money owed on a defaulted mortgage loan by taking ownership of the property.

The process begins when a borrower doesn’t pay the loan and the lender files a public notice of default, which means the general public is notified that a property owner is behind on their payments and that the property will be foreclosed.

The foreclosure process can end in the following ways:

  • The borrower/homeowner pays off the defaulted loan amount within a certain time period.
  • The borrower/homeowner sells the property to a third party during the pre-foreclosure period.
  • A third party buys the property at a public auction at the end of the pre-foreclosure period.
  • The lender takes ownership of the property via a short sale or buying it back at public auction, with the intention of reselling it.


The public default notice is usually filed after the homeowner misses three months of payments. It should be treated as a threat to sell your property, revoke your rights, and evict you from the premises.

The threat of foreclosure shouldn't embarrass you. It can happen to anyone if an unexpected financial problem arises. Reasons some people face foreclosure include:

  • Illness
  • Job loss/unemployment
  • Divorce
  • Terms of the loan
  • Death


The two most common types of foreclosure used in the U.S. are judicial sale and foreclosure by power of sale. In a judicial sale, the court oversees the sale of the foreclosed property, with proceeds going toward the mortgage loan, then to other lien holders, and finally to the mortgagor. This is a legal procedure and all parties must be properly notified.

Foreclosure by power of sale is quicker and not done through the courts. The division of funds is the same.

If you're facing foreclosure and want to put a stop to it, call us today at 816-842-6200 to speak with an attorneyOr click here to email us and schedule your free consultation. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years, and we will be more than happy to help.