For example, a homeowner who misses a mortgage payment is in default. The homeowner can file a Chapter 7 or Chapter 13 bankruptcy up to Kentucky Bankruptcy Lawyer the sale date, but it must be filed before the sale. The owner loses any interest or rights to the property after the sale happens. Failing to file a Chapter 7 or 13 before the sale also triggers a possible IRS debt.

 

Kentucky Foreclosure Laws

 

Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor. A breach letter is basically a notice from the lender that informs borrowers that they are in default. Your mortgage contract mostly likely has this provision as a requirement. Before a lender can proceed and accelerate the loan, they must give you a chance to fix the default and avoid foreclosure altogether. Once you miss a payment, most lenders give borrowers a grace period of around ten to fifteen days. When this grace period passes, you will begin to see late fees.

 

This way, you can explore all of your options ahead of time, which could allow you to avoid the process completely. Working with an attorney may even give you the leverage you need to strike a deal with your lender. We generally recommend speaking with a lawyer as soon as possible after you receive the breach letter. Waiting too long could prevent attorneys from being able to help you effectively. If you fail to give an answer, the court will likely award your lender with a default judgment.

 

This happens when a debtor in Louisville, Kentucky has repeatedly failed to make their payments. A sale happens in less than 90-days if an answer is not filed. However, mortgage companies will often discuss your right to save the home with a mortgage modification workout or partial claim. A mortgage modification may not be your best option if rates have increased. Homeowners may also attempt to file an answer with the Court.

 

The lender could also extend the length of the term, or hold monthly payments to a designated percentage of the household income. This effectively stops all creditors and debt collectors from attempting to collect from you during the bankruptcy process, and also stops foreclosure proceedings. Once you have received the notice, a sheriff’s office representative or a process server will deliver a summons to you in person at your home. If you don’t, the lender will simply place a public notice in the newspaper. Find your loan documents (mortgage and note) and read them so you know what your lender may do if you can’t make your payments. They have options to help homeowners through hard financial times.

 

Florence Foreclosure Defense Lawyers

 

Inaccurate credit reporting can have a detrimental impact on your financial well-being. We’ll work to correct errors and ensure your credit report reflects accurate information. It was a tough situation we were in and we really appreciate your assistance. I was able to keep my house after my wife passed away…Kentucky Solutions is a life saver. Deatrick & Spies, P.S.C. is located in Louisville, KY and serves clients in and around Masonic Home, Eastwood, Louisville, Glenview, Harrods Creek, Prospect and Jefferson County.

 

You would miss this opportunity if you filed for bankruptcy after your home is sold in foreclosure. Our clients experience relief and hope in life after bankruptcy. The best time to hire a foreclosure attorney is before the foreclosure process officially begins.

 

So, the plaintiff immediately wins when Defendant fails to raise factual and legal issues properly and admits the debt is owed. You must have both legal and raise factual issues to be decided to delay foreclosure. The truth is, it takes time to sell a home or avoid foreclosure. Fighting a foreclosure or filing bankruptcy gives you that time.

 

Defending against a bank, a mortgage company, or another lender can often be a confusing process. State foreclosure laws are often highly complex, and these cases require special knowledge and experience to handle properly. 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.

 

Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be forthright with them. It is necessary to remember that the bank does not really want your Louisville house – they expected to make a profit through the interest on your loan, and that’s what they’d prefer to do. Accordingly, they will probably make reasonable accommodations to your financial situation if it means that you will be able to make some form of payment to them.

 

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.

 

Many Kentucky homeowners may go through the foreclosure process. This article is written to get you started in the right direction of understanding how foreclosure laws work. So, if you’re facing foreclosure, you are invited to continue reading to understand the foreclosure law better. First, and most importantly, you should not dismiss the issue. Failing to respond to foreclosure calls from your lender will not make an issue go away.