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 Louisville Foreclosure Lawyer situation, you’re in the right place. Schwartz Bankruptcy Law Center is here to help you get your life back.

What Are My Rights During Foreclosure In Kentucky?

This involves negotiating with the lender to change the terms of the loan, such as extending the repayment period or reducing the interest rate, to make the mortgage payment more manageable. A loan modification must be reasonable but Kentucky foreclosure law does not dictate what reasonable is. You have 20 days to file an answer or a default judgment may be issued, and the property will be sold. Most persons who attempt to file their own answer fail to use the property defenses or admit that they owe the debt and failed to make the payments.

After becoming about two payments behind in a mortgage, the lender will start refusing to take payments. When the loan is about six months overdue, the lender will send the mortgage off to an attorney and begin the foreclosure by filing the complaint. This section will cover various aspects of foreclosure in Kentucky, including ways to stop foreclosure, the foreclosure process, rights during foreclosure, and options available for borrowers facing foreclosure. Our staff is trained to identify and report all possible loss mitigation opportunities to our Home Retention Department. Tailored to your unique needs, we gather specific information to permit the client to evaluate each case for settlement opportunities.

The average law firm will have 30 to 40 percent of their Chapter 13 cases fail and become dismissed. When you’re 30 days behind on payments, your credit score will drop 50 to 100 points. The longer the payments go, the more your score will decrease. If you decide to file for bankruptcy, your credit score will also be negatively impacted. A completed foreclosure will also affect your credit score negatively. Owning a home is a big responsibility and can come with many headaches, especially when you get behind on payments.

Chapter 7 Bankruptcy

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 allows you to have some portion of the debt forgiven, while refinancing the rest. Foreclosure is the legal process by which the lender in a mortgage arrangement takes possession of the property (typically a house) that secured the loan.

Until that time, the old owner collects and manages the property. PNMAC Mortgage v. Stanko, states that even if the tenant has not paid rent to the new Landlord, the tenant is entitled to the 90-day notice period under the PTFA. Many people whose vehicles have been repossessed believe they do not have any rights because they fell behind in the payments. Even if you defaulted on your auto loan, you still may have certain rights in the vehicle under the law.

O’bryan Law Offices Can Help If You Are Facing Foreclosure

He collaborates closely with colleagues within the Kentucky practice, ensuring efficient and accurate progress on case matters. Additionally, he liaises with Master Commissioners and Courts to ensure that MDK employs the most effective processes while upholding the firm’s esteemed reputation. This commitment to teamwork hasn’t gone unnoticed, evidenced by his 2023 Best Lawyers designation in Mortgage Banking Foreclosure Law. Whether it is a foreclosure or eviction matter, Christopher Wiley’s pragmatic experience is consistently leveraged by clients.

Any bankruptcy is less damaging to your credit than a foreclosure. If you file bankruptcy and get a discharge you can buy a home within two years after a discharge. If you have a foreclosure it will be from 3 to 7 years you will have to wait before you can buy another home. Some of my Chapter 13 clients were able to refinance or purchase a home after making on-time payments for a year inside their bankruptcy.

This is done when the Louisville, Colorado debtor has repeatedly failed to make their payments. Often, banks want to get rid of the property as soon as they can, in order to make as much money as possible, and move on. If you believe that foreclosure is imminent, there are some other options.

Lawyers with longer memberships tend to have more experience so we use the Membership date to help prioritize lawyer listings on search pages. With a refinanced mortgage, you basically trade your current mortgage for a new one with a different interest rate and principal. The new mortgage pays off the old one, leaving you with only one monthly payment.

The type of foreclosure used depends on the options afforded by the state’s foreclosure laws and the specific circumstances of the case. Understanding whether your foreclosure is judicial or nonjudicial is essential, as it affects the timeline and legal requirements involved. 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.