M&P also provides a flat fee residential foreclosure service for our  Louisville Foreclosure Lawyer clients. Staffed with knowledgeable attorneys and personnel, this streamlined program allows our clients some certainty as to the overall expense of a foreclosure action. In addition to the foreclosure process, our attorneys often prepare deeds-in-lieu of foreclosure and forbearance agreements for clients who desire a resolution outside of the judicial process. Clients need a client-centered approach from experienced lawyers whose only practice areas are defending foreclosures and Chapter 7 or Chapter 13 cases. Over 99% of our Chapter 7 clients complete their Chapter 7 and obtain financial freedom and discharge.

 

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 allows the lender to foreclose on your home and hold a sale.

 

After A Covid Mortgage Forbearance, You Have Options For Paying What You Owe

 

So, do thorough research to find out how many years of practice they have had as a foreclosure attorney and their education. This way, you are closer to making an good decision, and thereby increasing the chance of keeping your home and all the lovely memories you have in it. Filing for Chapter 13 bankruptcy gives you up to five years to recover your payments and allows you to keep your property. It is another potential alternative to foreclosure that a qualified attorney can assist you with and offer experience and information that you may otherwise struggle to discover. For instance, if the mortgage company either does not perform preliminary steps or breaches the contract, they might not have the right to foreclose. Additionally, if a foreclosure law is violated, or the foreclosure party is not the owner of the mortgage debt, your attorney helps you see the missing pieces and responds accordingly in your favor.

 

Over 40 Years Of Bankruptcy Experience

 

This is a transaction where the homeowner (the “borrower”) transfers the title to the lender, and that lender then cancels the foreclosure. 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.

 

The mortgage lender will file for court approval to notify the homeowners of default. The pre-foreclosure warns homeowners that there is little time left to settle their debts before they put the home on the market. However, there is still a chance that homeowners can avoid foreclosure and negotiate with their lenders. To stop the foreclosure, the homeowners must pay off their debts to the lender. Chapter 13 bankruptcy can cure foreclosure by giving homeowners time to catch up on their home mortgage payments. This type of bankruptcy allows homeowners to reorganize their debts and create a repayment plan to catch up on missed mortgage payments over three to five years.

 

Many for-profit companies will contact you promising to negotiate with your lender. 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. Our foreclosure lawyers are here to help you find a foreclosure alternative that works for your individual situation.

 

If the foreclosure was nonjudicial, the homeowner may have a shorter redemption period. In a foreclosure, the borrower’s total mortgage debt frequently exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a “deficiency.” For example, say the total debt owed is $450,000, but the home sells for $400,000 at the foreclosure sale. If you’re facing a foreclosure, filing for bankruptcy might help. In fact, if a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy.

 

Servicers generally must provide borrowers with loss mitigation opportunities, account for each foreclosure step, and carefully comply with foreclosure laws. 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.

 

A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale. The lender gives notice of the suit by serving you a summons and complaint. Here at Schwartz Bankruptcy Law Center, we help those struggling with debt get the fresh start they deserve. We are committed to offering debt relief options that are in your best interests and are designed to give you peace of mind. Our attorneys have over 40 years of combined legal experience and know how to handle bankruptcy filings. We will help you and your family get through the legal process, from beginning to end, with confidence.

 

Foreclosure is the process through which the lender in a mortgage takes ownership and/or possession of the property that secured the original loan. This happens when a debtor in Louisville, Kentucky has repeatedly failed to make their payments. By law, a lender is allowed to initiate Kentucky home foreclosure proceedings after you have missed only three mortgage payments. The foreclosure becomes public record once the lender sends you notice of the intent to foreclose.

 

Then, the bank must follow the proper process to foreclose, which includes the time period requirements. However, if the judge orders a sale, the commissioner will advertise the property for sale for two weeks and then sell the property. You can attempt a reinstatement, workout  or modification while you defend the foreclosure or while you are in bankruptcy. But you normally don’t have the time to do these solutions if the house can be sold in 90 days. You are too late to file a bankruptcy or answer to the lawsuit and save the home after the auction happens. If you’re facing foreclosure in Kentucky, it’s crucial to understand your rights and options.

 

Kentucky Solutions helped me sell the house and avoid foreclosure proceedings. Filing either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy will stop any home foreclosure action by your lender under the automatic stay provision of the U.S. However, you will still have to catch up on your house payments if you want to keep your property. Chapter 7 Bankruptcy is often used to avoid having any deficiency or 1099-C tax debt as a result of a foreclosure. Unpaid debt becomes income under the tax code when the lender claims a loss.

 

The lender can also pursue a deficiency judgment which makes the homeowner responsible for making up any leftover balance owed after the house has been sold. Some lenders will forgive the remaining balance after the home has been sold, but there is a chance that you could be required to pay some or all of the difference. The extent of how much your credit score is affected will also depend on how high your score was before the missed payments, bankruptcy, and/or foreclosure. [newline]A higher credit score will be affected more than one that was already low.