Working with a real estate agent specializing in short sales is important. During Louisville Foreclosure Attorney the short sale process, the lending bank is also involved and will usually hire their own real estate brokers or attorneys to get an estimated property value. Homeowners struggling to make their mortgage payments may qualify for a loan modification.
While your non-exempt property will be sold by a bankruptcy trustee to pay off your debt, there are federal and Kentucky exemption laws that can protect certain types of property, including your home. It is in everyone’s best interest for the lender to get the highest possible price at auction. If the sale price is more than what’s left on the mortgage, the borrower can keep the extra. If it’s less, the lender has the right to collect the deficiency on the judgment.
When a foreclosure is final, the homeowner must move out of the house. If the servicer sells the property for less than what is owed, they or the U.S. Department of Housing and Urban Development (HUD) could seek a deficiency judgment on the homeowner. This means that the homeowner could still owe the servicer or HUD money even after the foreclosure. Foreclosure is the legal means to repossess or take over a home. Kentucky is a judicial state, meaning that most, if not all, foreclosures are processed through the courts.
This has resulted in the Firm being at the forefront of the default mortgage industry. In a repayment plan, additional money is added to your regular monthly mortgage payments for set time periods to pay back what you owe. After the missed payments are paid back, monthly payments return to normal. Before signing anything when it comes to a repayment plan, be sure you can afford the extra money each month that you’ll be required to pay.
In all, more than 70 appeals were resolved, earning Lauren Paxton Roberts, who headed the effort, recognition by the Legal Aid Society of Middle Tennessee and the Cumberlands. A cornerstone of Chris’s success is his unwavering belief in the power of collaboration. He recognizes the invaluable support network that propels him forward, including his family and friends, along with the collaborative efforts of his colleagues. Actively engaged in the Kentucky and Indiana Bar Associations, Chris builds connections both within and beyond MDK, enriching his legal practice with shared knowledge and expertise. Under PTFA, bona fide tenants may continue to occupy the property until the end of a lease unless the lease is at will or the home is sold to a purchaser who intends to own the unit as a primary residence.
He must also guide you on the best way to handle loss mitigation. You work with the lender to sell the property for less than the loan is worth. You are doing the work for the mortgage company and being forced out of the home early.
Kentucky Foreclosures Redemption Period And The Right Of Rescission
Best Lawyers employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of the quality of legal services. Our belief has always been that the quality of a peer review survey is directly related to the quality of the voters. The third scenario is that the lender will wait for the bankruptcy case to end and then pursue the foreclosure. Regardless of what happens with your foreclosure after filing for Chapter 7 bankruptcy, chances are you will not be able to keep your home. If you cannot qualify for a refinance, you can look into a loan modification, which reworks your current loan.
However, if there is an answer, discovery, or bankruptcy filing, it is 18 months to over two years. Even if you file bankruptcy and surrender the property, a foreclosure may be required to get a clear title in order to transfer the ownership to the bank or new buyer. At O’Bryan Law Offices, our pre-foreclosure attorneys have been helping residents in Kentucky and Indiana navigate the legal process and help you avoid losing their homes. There are many scam artists out there who may make false promises to help you avoid foreclosure. If you seek help from the wrong people, it can leave you in a worse situation than before. Another option is to discuss a repayment plan with your lender to make up the past-due payments.
The Disadvantages Of A Deed In Lieu Of Foreclosure
This can be beneficial if the interest rate is lower than it was when you got the loan and can extend the length of your loan. In some cases, although rare, the lender can reduce the loan amount. Missed payments are reported to the three credit reporting agencies – Experian, Equifax, and TransUnion. The report will state how overdue the payments are by 30 days, 60 days, 90 days, etc. Once the credit reporting agencies have this information, they will add it to your credit report. We can help you get a fresh financial start or consolidate your debt into one affordable payment.
At this point, the lender will have received legal permission to evict the residents and put the home up for a foreclosure auction. Mortgage companies often bid two thirds plus 1% (67%) of the appraised value at the Commissioners sale to prevent homeowners from redeeming property. The key to saving a home is to file a Chapter 13 before the sale and catch it up. Any Chapter 13 must be filed before the sale, or you lose all rights to the home. Filing a Chapter 13 requires time to design the Chapter 13 plan and petition.
It details the legal steps required for a new owner to reclaim property from a resident after a foreclosure sale. Our resources can help you navigate this process, including the variations in legality and timelines across different states. The redemption period is short and most people cannot come up with the money after the foreclosure auction. Even if there was a foreclosure auction a foreclosed home may still belong to foreclosed homeowners because until the home is paid for the buyer only has an equitable interest in the home. With regard to foreclosures and the landlord-tenant lease eviction laws, this article explains the rights of both tenants and landlords.
That’s why it takes a lot of expertise and practical knowledge to convince your bank that a loan modification should take place. This is another part of the foreclosure process that your attorney’s help is crucial in properly asking for the application. This is the time to decide whether to keep a home or whether to surrender it. If you file Chapter 7 bankruptcy, you won’t have to be responsible for income taxes from a 1099 and it delays the sale. If you want to save the home, you may apply with the lender for a mortgage modification or file Chapter 13 in bankruptcy court.
The commissioner’s sale or foreclosure auction is a public auction held by the commissioner’s office. The opening bid is usually set by the servicer and the highest bidder wins the deed to the property. A commissioner’s hearing may be held if the homeowner files an answer to the complaint that presents a legitimate defense or a response to a summary judgment, which is a judgment without a full trial. Now you may have money to move but, that’s when the bank eventually sends it. Also, the lenders vary the offers from case to case, and some lenders don’t offer anything.
We offer language services in Spanish, German, Italian, Mandarin Chinese, Czech and Korean. Never simply walk away from the property because as long as the property is in your name, property taxes will continue to accrue. You remain liable for these property taxes until the transfer of the property. At the time of the foreclosure sale, these taxes are normally paid first before the mortgage.
To start a foreclosure, the lender files a complaint in Circuit court in Kentucky, after which the debtor has 20 days to file an answer. If the debtor does not timely and properly raise the proper defenses, the lender often quickly files a summary judgment. Then, they win because there are no issues of fact to argue over. Some homeowners file answers themselves and admit the default. When the homeowner is about 60 days behind, the mortgage company will stop accepting payments.