There has been a lot of recent news surrounding the commercial foreclosure crisis in Kansas City. We’ll talk more about what’s going on in the city, how it’s affecting businesses and lenders, and what Total Lender Solutions can do to help Missouri lenders during this challenging time.
What’s Going on With Foreclosures in Kansas City?
Commercial foreclosure filings in Kansas City have shot up substantially, ranking the state the 23rd highest in the nation. Foreclosures rose by 120.6%, from 1,177 in the first six months of 2021 to 2,596 in the first half of 2022. Bank-owned properties now make up almost 50% of the Kansas City foreclosure market, with the other 50% being auction inventory. In some zip codes in Kansas City, more than 1 in 1,000 properties are in foreclosure; the highest rate being 1 in 834 properties—which is significantly more than the national average.
Lenders are still grappling with the COVID-19 pandemic’s financial aftermath, high unemployment rates, loss of income, and encountering new challenges that are causing them to fall into default and resort to foreclosure.
Missouri’s Commercial Foreclosure Process
In Missouri, when commercial real estate property is foreclosed, it is sold to the highest bidder on the date specified in the Notice of Sale (NOS). Before the auction can take place, the property must go through the pre-foreclosure process. It is not uncommon for lenders to delay beginning the foreclosure process for months or even years after the borrower stops making payments.
However, when the lender has exhausted alternative resolution options and is ready to begin the commercial foreclosure process, a firm like Total Lender Solutions can provide the guidance and expertise to get lenders started on next steps.
If This Crisis Is Affecting You, Total Lender Solutions Can Help
If you’re one of the lenders being affected by the commercial foreclosure crisis in Kansas City, Total Lender Solutions has what it takes to guide you through this challenging time. Foreclosures can be complex, especially when dealing with commercial real estate. In Missouri, the price of noncompliance is steep and can lead to fines, lost revenue, and lawsuits. Not all non-judicial states are the same, so we have experts with specialized knowledge of compliance rules and regulations for the state of Missouri. The sooner you involve an expert in the commercial foreclosure process, the smoother your foreclosure is bound to go. Protect your assets and give your team peace of mind: get a quote today with our Foreclosure Price Calculator.
