Blair Gisi featured in the USFN September 2018 e-Update
Kansas: Appellate Court Reviews Redemption Period on Reverse Mortgages
The Kansas Court of Appeals recently offered a clear and unequivocal opinion regarding the proper redemption period on home equity conversion or reverse mortgages.
In Kansas, a defendant owner of a property may redeem any real property sold under execution within twelve months from the date of sale [K.S.A. §60-2414(a)]. However, lenders and servicers are often allowed to shorten that redemption period to three months under K.S.A. § 60-2414(m), which provides that if a default occurs “before 1/3 of the original indebtedness secured by the mortgage or lien has been paid, the court shall order a redemption period of three months.” In other words, if the unpaid principal balance is 2/3 or more of the original principal balance at the time the Petition to Foreclose is filed, the redemption period is three months.