David Van Noy Jr
816 536 7653
There may be other options available as well.
It's my understanding that Kansas follows the judicial foreclosure method as opposed to the trustee sale method. The significance of that is that the lender can typically obtain a deficiency judgment if the winning bid at the foreclosure sale was not a full debt bid. Trying to figure out how much of a deficiency judgment you may face can be difficult as you don't know in advance what will happen at the foreclosure sale. While an attorney can't predict that either with absolute certainty, he/she will know more about what typically happens than anybody on Trulia Voices.
Assuming that foreclosure sale did not yield a full debt bid, the lender can go back to court and seek a deficiency judgment. How the bank can enforce the judgment will again depend on the laws in your state. If your primary residence is in another state, the bank will have to go through the process of enforcing a foreign judgment ("foreign" just means from another U.S. state) in your state and typically, they'll be able to record the judgment in the county in which your primary residence is located and the judgment will rear it's ugly head when you try to sell your residence or refinance as it will show up as a lien on any real estate you own in that county.
I would recommend that you try to work out a solution with the bank to avoid a foreclosure. The bank should be interested in such a solution as it is also beneficial to the bank not to have to go through the judicial foreclosure process and having to wait for the redemption period to expire after the foreclosure sale. What workout solutions may be available to you will really depend on your particular circumstances. Since this is an investment property, getting a short sale approved may be less likely as banks typically don't grant short sales for investment properties, but every bank has it's own rules and guidelines.
If there's mortgage insurance, your options will be different than when there's no mortgage insurance as the bank will be limited in what they can do when there's mortgage insurance since they would not want to do anything that would jeopardize their ability to file a claim under the mortgage insurance policy. For instance, they most likely would not be able to accept a deed in lieu of foreclosure and still collect on the mortgage insurance. I am just mentioning this, because the purpose of the mortgage insurance is to protect the lender in the event of a deficiency and some banks take out mortage insurance without the borrower's knowledge. It does not hurt to ask the lender whether there is mortgage insurance.
In summary, I would say, the possibility of a lien against your primary residence does exist, but the likelihood of it happening really depends on your particular facts and circumstances. Anybody who faces the possibility of foreclosure, should consult with an attorney and tax adviser to get a clearer picture of what to expect and how to best approach the situation. Many times, it will be a matter of picking the lesser evil.
The best of luck to you.