While my situation has yet to be resolved, and may not be possible to resolve at all, I submitted a signup form and was contacted immediately. In a state Kentucky Bankruptcy Lawyer sale, the proceeds go to judgment liens before the debtor is paid. The debtor only keeps $5,000 in equity not the $23,000 exemption. The Debtor, his income taxes and Child Support are paid last if anything is left.
Once you have fallen behind on your mortgage payments, you still have time and options that will help you prevent or avoid foreclosure. In the following sections, we briefly outline the Kentucky foreclosure process. Foreclosure is a process that no homeowner wants to go through. However, encountering financial difficulties and failing to make mortgage payments can trigger the process. As a borrower, you still have rights, regardless of whether the foreclosure process has begun.
When dealing with something as important as your home, you want to ensure you receive the best legal advice. If you’re pursuing an alternative to foreclosure, like a loan modification, you could benefit from being in default. Loan modifications are a type of refinancing that can help you avoid foreclosure proceedings. To learn more about loan modifications and other options to prevent a foreclosure, your lender or a Kentucky foreclosure attorney can help. However, not all short sales are for a pre-foreclosure property. If homeowners know their home is impending foreclosure, they may begin the short sale process.
Chapter 13 allows you to consolidate payments to repay some or all of your debt in affordable monthly payments over a three- to five-year period. If you can continue to make mortgage payments, you can keep your home rather than losing it to foreclosure. A pre-foreclosure does impact your credit score, but how much it affects your credit score depends on several factors. Your credit score can be affected by how far behind you are on your missed payments if you’ve filed for bankruptcy and the foreclosure has been completed. The foreclosure process begins once the homeowner cannot pay the debts and stops the pre-foreclosure process.
This involves negotiating with the lender to change the terms of the loan, such as extending the repayment period or reducing the interest rate, to make the mortgage payment more manageable. A loan modification must be reasonable but Kentucky foreclosure law does not dictate what reasonable is. You have 20 days to file an answer or a default judgment may be issued, and the property will be sold. Most persons who attempt to file their own answer fail to use the property defenses or admit that they owe the debt and failed to make the payments.
When the mortgage payment is three months past due, the lender will file the notice of default with the County Recorder’s Office. Once this notice has been filed, the pre-foreclosure process has begun. Following a summary judgment, the property is scheduled for a master commissioner sale, where it will be auctioned off to the highest bidder. These foreclosure sales are typically conducted by a court-appointed commissioner and are advertised in local newspapers. If the homeowner does not file a bankruptcy prior to the sale the only remaining right the homeowner has is the right of redemption.
The New Owner Is Subject To The Lease Eviction Laws
When defending a foreclosure, it’s time to check and confirm the lender is in compliance with these laws. The Truth in Lending Act requires the mortgage lender to obtain specific information and documents and disclose them to the homeowner. For instance, TILA requires mortgage companies and banks to provide two copies of the right to cancel—one copy for each spouse or co-debtor. If two copies are not provided at closing, a homeowner or borrower has three years to rescind the transaction. In every state, including Colorado, borrowers have the option to go through foreclosure by judicial sale. The bank cannot go after the debtor for the remaining balance once it sells the house.
Louisville Ky New Albany In Foreclosure Lawyer
The notice of default is about a one to three-month-long process. This legal notice is a public record and states that you’re behind on your loan. Once the mortgage lender has filed the notice, it’s basically the last call to action that they give homeowners. If they don’t come up with a solution to pay off the debt, they will foreclose on the home. To prevent foreclosure procedures from beginning, contact your mortgage loan servicer as soon as you know you will miss a payment. Servicers may agree to a work out plan with homeowners to make the loan current.
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This is important because a rescission is possible if the lender misrepresents facts such as the actual cost or fees. This period provides the only final opportunity for homeowners to reclaim their foreclosed home and avoid eviction proceedings. Missing the length and conditions of the redemption period means you have lost the home permanently. With a foreclosure, it may take three to seven years before you can buy another house.
Most importantly, a foreclosure attorney represents you in court, ensuring that you follow all the procedures and processes. They also help you fill out paperwork, meet important deadlines, and even achieve a loan modification if necessary. We explore all possible options on your behalf, helping you decide which course of action is best for you. Since 1991, I have practiced bankruptcy law and foreclosure defense in Louisville, Ky handling over 7,000 Chapter 7 and Chapter 13 cases and over 1,000 foreclosures. I am an experienced lawyer focusing on bankruptcy relief for foreclosures, small businesses, consumers, and tax debt.
The statute also requires that eviction notices must also be sent to the Housing Authority. Even if the individual rents from a corporation, the lease is still protected. The Helping Families Save Their Homes Act went into effect in 2009. This act included the Protecting Tenants at Foreclosure Act (PTFA.) PFTA requires that any new owner takes the foreclosed property subject to the rights of the lease and tenant. In other words, the new owner is subject to all current lease eviction laws. Our legal team will work to defend your home and explore options to keep it.
Many people simply file the Chapter 13 as an answer to the foreclosure complaint. It is the quickest easy cheapest method to cure the default if you plan to keep the home. Your contract or “note” with the mortgage company allows them to add on the legal fees often at 350, 450 or 550 per hour for attorney fees. Delay filing the Chapter 13 and it may be impossible to catch up the mortgage because the legal fees and default have to be cured. Many people choose to litigate or stay in the house rent-free until the house is sold. This allows people to save up house payments they would have made.