A Kansas homeowner borrowed $240,000 secured by a mortgage on her primary residence. After defaulting, the property went through the Kansas judicial foreclosure process and was sold at a sheriff's sale for $204,000. The lender incurred $6,000 in court costs and attorney fees that were approved by the court. What is the amount of the deficiency judgment the lender may seek against the borrower under Kansas law?
Correct Answer
A) $42,000
Under Kansas foreclosure law (K.S.A. 60-2410 et seq.), after a judicial foreclosure and sheriff's sale, the lender may obtain a deficiency judgment for the full amount still owed after applying the sale proceeds. The total amount owed = $240,000 (loan) + $6,000 (court-approved costs) = $246,000. The sheriff's sale produced $204,000. Deficiency = $246,000 - $204,000 = $42,000. Kansas permits deficiency judgments after judicial foreclosure, and court-approved costs are added to the debt before calculating the deficiency.
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