You should stay in touch, and be honest with, your creditor as much as possible. You should remember that banks in Louisville don’t want your house. While Louisville Foreclosure Lawyer the foreclosure process can be devastating for the homeowner, it’s no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are honest with them, lenders will usually try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

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.

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.

Filing for Chapter 13 bankruptcy is another option available for homeowners. You will have to prepare a repayment plan for your creditors and have it approved by your bankruptcy trustee. As with Chapter 7, you’ll get an automatic stay when you file, and it will last as long as the bankruptcy proceedings are in effect. However, you do have to prove you have enough income to not just keep up with your current monthly payments, but also to pay back your arrears over the course of 60 months maximum.

However, if you are far behind on your house payments, filing a Chapter 13 bankruptcy may be the best choice for you. Under a Chapter 13 debt repayment plan, you have up to five years to bring your mortgage payments up to date. Oftentimes, unsecured debts such as credit cards or medical bills compromise your ability to make your mortgage payment.

He is AV Preeminent® Peer Review Rated™ by Martindale-Hubbell® and listed in The Best Lawyers in America® for his many legal accomplishments. Contact your lender or servicer as soon as you realize that you have a problem. The mortgage holder, noteholder and servicer can all be the same company or all different companies. When you sign your mortgage, you also sign a document called a note.

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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.

In the following sections, we briefly outline the Kentucky foreclosure process. Generally, loan servicers must provide borrowers with loss mitigation opportunities. They must also strictly adhere to state and federal foreclosure laws. So, if you’re behind on your mortgage payments in Kentucky, you still have options. Understanding the full Kentucky foreclosure process is crucial if you want to save your home and regain control of your finances. Morgan & Pottinger’s foreclosure attorneys handle complex commercial real estate foreclosure and residential real estate foreclosure proceedings throughout Kentucky and Southern Indiana.

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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.

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Facing foreclosure is perhaps one of the most stressful and trying experiences a person could have. In order to redeem the property, you must pay off the amount that you owe on your loan before the foreclosure sale begins. In Kentucky, you also have what is known as a redemption period. A redemption period allows borrowers to buy back their home after the foreclosure sale. Kentucky law allows a redemption period of six months if the home is sold for less than two-thirds of its appraised value. If you file for Chapter 7, this will stop the foreclosure, but only for a certain period of time.