I am an experienced lawyer focusing on bankruptcy Louisville Foreclosure Lawyer 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!
Asking for discovery or a jury trial may postpone the matter for much longer. You do need to decide however at the start of the case do you want to litigate and delay or negotiate and save the home. Our experienced bankruptcy attorneys at O’Bryan Law Offices can help you choose the best option for your situation. We’ve helped many clients in the Louisville area save their homes and start fresh. Filing for Chapter 13 bankruptcy may increase your opportunities to keep your home, but you must be able to afford your monthly mortgage payments after bankruptcy.
Will Filing A Chapter 13 Bankruptcy Stop Foreclosure?
At Hirsch Law, we can help homeowners keep their homes through bankruptcy, loan modifications, short sales, or a deed in lieu of foreclosure. The thought of losing your permanent residence can be emotionally draining. You may have thought it would never happen to you – foreclosure. Yet, you are now faced with this real possibility, and are looking for ways to avoid having your house taken away from you. If you’re wondering if you can stop a foreclosure in Louisville, Kentucky, the answer is “yes.” Filing for bankruptcy is one of many viable options to save your home. Under Kentucky law, the new owner from the foreclosure sale gets the right to possess the property after giving you a 10 days’ notice in writing.
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.
Judicial foreclosures require a court-ordered sale of the home. However, federal laws give you added support and rights during the whole process. However, the borrower only gets a short time to respond to a complaint after it is filed. If the borrower fails to pay within that time, the Commissioner then advertises and holds a sale of the property. If you’re behind in payments and have mounting debt, then you’re facing one of the most difficult challenges a person can face. Fortunately, if you find yourself in this situation, you’re in the right place.
Some states treat mortgages as “non-recourse loans.” A non-recourse loan is one that is secured by the borrower’s property, but for which the borrower is not personally liable. Basically, this means that a lender in a foreclosure can take the house that was mortgaged, but nothing else. If the house sells for less than the lender is owed, it cannot go after the borrower.
Reinstating The Mortgage Before The Foreclosure Sale In Kentucky
Communication between you and your lender is perhaps the most important way to avoid foreclosure. Honesty is the best policy when it comes to dealing with lenders. Attorney Tracy Hirsch will help you determine if a Chapter 7 bankruptcy or Chapter 13 bankruptcy will best suit your specific situation.
Lawyers with longer memberships tend to have more experience so we use the Membership date to help prioritize lawyer listings on search pages. Assets can be things like a second car that has been paid off or jewelry. If you sell them, you could use the cash to help reinstate your loan. Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home. In Kentucky, lenders and judicial liens foreclose on homes in Circuit Court. Interestingly, other states use a deed of trust to foreclose a home.
It is becoming increasingly common to see debt buyers purchasing these deficiency debts and suing for the deficiency with interest and foreclosure attorney fees. Unfortunately, this judgment is valid in Kentucky for up to 20 years. Next in the Kentucky foreclosure process is the complaint but, filing the complaint with the circuit court is just the start to a lender obtaining a judgment and sale. In the filing, the plaintiff must include all parties that may have an interest in the property. This includes taxes claims, any spouse, other mortgages, and judgment liens. The necessary parties include anyone with a possible interest in the parties.
If you fail to respond I have seen a property sold within 90 days. If you’re considering any of the options mentioned above, speak with a foreclosure attorney immediately. The stay lifts automatically when the court grants your discharge of debts, which takes about three months. However, it usually takes a lender a while to restart the foreclosure process, so your stay may actually last somewhat longer. True bankruptcy protection falls under Chapters 7 and 13 in the U.S.
Having a skilled litigator will help ensure that the process proceeds as smoothly as possible for you. They will also be well-acquainted with different methods of foreclosure defense. You could, for example, try a “short sale,” which allows you to sell your house for whatever amount you can get, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank will get the proceeds of the sale, and the rest of the debt will be forgiven.
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.
Sometimes, a foreclosure sale doesn’t bring in enough money to pay off the full amount owed on the loan. The process of judicial foreclosure is long, complex, and varies from state to state, jurisdiction to jurisdiction, and sometimes from judge to judge. Nonetheless, we have distilled the foreclosure process to create an action timeline to manage and monitor the progress of each of our clients’ cases. Because so much of the foreclosure process is outside of our direct control, we aggressively manage each foreclosure to eliminate as much lead time as possible from complaint to sale. Our standard provides an aggressive basis for exception reporting and daily lead-time analysis by our management team.