Foreclosure is a judicial procedure allowing mortgage lenders Louisville Foreclosure Attorney to take ownership and/or possession of the debtor’s real estate (which was used to secure the loan) in the event of nonpayment in Louisville, Ohio. When a house is foreclosed, it is usually sold at auction shortly thereafter. This is because banks usually want to get rid of the property as soon as possible, even if it means losing some money, and an auction is an simple way to do this. 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.

What Is Automatic Stay?

If the home is not a good deal, then the homeowner typically wants to give himself time in the house so the family can make a smooth transition to a new home. It is also essential to avoid damage to your credit, a deficiency, and an income tax debt. To give yourself time you may want to defend the foreclosure by filing an answer, discovery, summary judgment, or request for mediation. The attorney should review the loan for RESPA and TILA violations along with many other possible defenses. When the mortgage company files the foreclosure with a history of the mortgage payments, the homeowner should first sit down and look at the home objectively. If the home has equity, the home fits the needs of the homeowner, and the mortgage is at a reasonable rate you may want to keep the house.

The pre foreclosure process officially begins when you fall behind on your mortgage payments. Your mortgage company or servicer can charge certain fees during this time. Examples of these fees include late fees and inspection costs. They must also send you information about how to avoid foreclosure, as well as a breach letter.

So, if you have a foreclosure and need more information about the Kentucky foreclosure process, call my law firm today. I make sure to maintain the best attorney-client relationship. You can count on my services if you’re struggling to find foreclosure lawyers. Also, see my contact information below to get assistance instantly. Unfortunately, the homeowner will owe income taxes for any 1099-c filed after the sale and transfer. By filing a Chapter 7 or 13 before the sale you avoid any income tax debt and any deficiency.

However, you must take a bankruptcy means test to see if you qualify. Speak with a Louisville bankruptcy lawyer to learn more about your options. As we mentioned earlier, bankruptcy is a valid solution for preventing lenders from foreclosing on your home. When you file for bankruptcy, this stops the foreclosure process in its tracks. You have the benefits of the automatic stay, which prevents your creditors from harassing you, from attempting collections, and from foreclosing on your home.

I am an experienced lawyer focusing on bankruptcy relief for foreclosures, small businesses, consumers, and tax debt. In 2005 I purchased two investment properties and rented them both out. When the market went down, I could no longer afford either property but I also could not sell them either so I got behind on my mortgage payments. I contacted Kentucky Solutions and they were able to take them BOTH off my hands for less than what I owed by doing a Short Sale, and I don’t owe anyone a dime! My problems are solved and the foreclosure is stopped—Amazing!

For a bank, a foreclosure is simply a last resort to cut their losses. Kentucky Legal Aid is the only free, civil legal services provider in South-Western Kentucky. Since 1977 we have specialized in providing top-tier legal assistance to people living in poverty, the disabled, and senior citizens. Many Kentucky mortgages have a provision that requires the lender to send a breach letter if you fall behind in payments. If you don’t cure the default, the lender can accelerate the loan (call it due) and go ahead with the foreclosure.

Contact Us To Know More About The Kentucky Foreclosure Law Process!

To keep the house, the homeowner can file for Chapter 13 bankruptcy to catch up on the mortgage and stop the foreclosure. It is possible to obtain a deficiency judgment against the borrower for the difference between the amount the borrower owed on the federally backed mortgage loan and the foreclosure sale price. But only if the borrower is personally served with the lawsuit and then loses the lawsuit, or fails to answer.

Our Foreclosure Department is staffed by skilled real estate attorneys licensed to practice in the states of Ohio, Kentucky,Indiana and West Virginia. Foreclosure defense offers options for a homeowner who falls behind on a mortgage, such as alleging lender misconduct or negotiating a loan modification, repayment plan, forbearance agreement, or short sale. If you’re facing foreclosure and you want to defend against it, working with a foreclosure attorney is your best bet.

Short Sale Negotiation And Loan Modification Legal Services In Louisville, Ky Cost Estimates

Essentially they state there are no issues left to be argued. This is a crucial step in the judicial foreclosure process when facing financial hardship. Because there are over 120 different primary defenses, the mere filing of an answer and discovery may delay the judicial foreclosure process for years.

Our national directory features foreclosure and mortgage lawyers in every state and major metropolitan area. Kentucky is a judicial foreclosure state, which means that foreclosure cases go through the court system and the lender must file a lawsuit to foreclose on the property. The court will attempt to determine the circumstances surrounding the default through in-court hearings and documents filed by the homeowner and lender. The homeowner will also have the opportunity to try to negotiate a way to avoid losing avoid foreclosure. If the process proceeds to the foreclosure sale, a few things can happen.

The Commissioner usually decides default and summary judgments. The Court must only agree with the Commissioner’s recommendations to enter a judgment. The deed transfers to the buyer at closing, but the buyer has an interest in the property as soon as the auction is held. Even if a bankruptcy court grants the bank their motion to end the stay, the foreclosure will be delayed at least a few months.

Let’s say you have fallen behind on your mortgage payments, but the foreclosure process has yet to officially start. The servicer of your mortgage can begin to charge fees during this time. Some examples of these fees include late fees and inspection fees. However, your lenders are also required to send you a breach letter, as well as inform you of how you can avoid foreclosure.