Consult a real estate attorney or foreclosure lawyer to understand the Court and what is owed and how to redeem and pay the allowable charges. Certain circumstances will modify your redemption rights when a property is foreclosed. 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. Foreclosure is a process that begins when a homeowner who has borrowed money to buy a house fails to make their mortgage payments.

At this time, homeowners have several options to stop foreclosure. They can negotiate with their lender on their monthly payments or settle the debt by a deed-in-lieu-of-foreclosure or a short sale. McBrayer offers a range of options for our clients who need to collect on the obligations of their customers or borrowers, whether in a consumer or commercial context. McBrayer regularly represents local and regional banks, mortgage lenders, and non-profit housing agencies in collection and foreclosure matters. McBrayer also frequently represents large and small businesses and individuals in collection matters.

There are about 120 different federal and state laws and defenses to a complaint, from the statute of limitations to fraud. If you do not assert them in the initial answer, you lose affirmative defenses forever. Just filing a good answer will almost always delay the foreclosure by 6 months. Until the property is actually sold to a new owner, the homeowner could still find a work out solution with the servicer. There is no legal requirement that a servicer must work with the homeowner.

Unlike foreclosures, credit agencies do not notate a pre-foreclosure on your credit report. The only way it will be reflected on your credit score is from the missed payments. Those missed payments will be noted on your credit report and drop it down. Both bankruptcy and foreclosure severely affect your credit score and can be difficult to recover from. There are also some advantages and disadvantages to selling and buying a pre-foreclosure property.

Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage. Facing foreclosure is perhaps one of the most stressful and trying experiences a person could have. Many borrowers are unaware that they have certain rights and protections under state and federal law. Most attorneys are well aware of these protections, and will inform homeowners of their legal rights. Therefore, not only will we inform you of your rights, but we will also help you defend them.

Even if the note and mortgage are to one spouse only, the other spouse also has the right to be given notice. Under the Truth in Lending Act, if the loan is invalid, the loan default is also invalid, which stops a foreclosure action. Invoking the right of rescission is just one of many rights and defenses. At Winton & Hiestand Law Group, PLLC we are your dedicated consumer protection attorney in Louisville, KY, committed to defending the rights of consumers. Our extensive experience makes us the premier choice for resolving matters such as debt collection violations, fair credit reporting, mortgage foreclosure defense, motor vehicle repossession, and much more. While our firm is bolstered through our professional associations, it is our internal processes that form the foundation for our foreclosure activities.

Kentucky law allows the mortgage servicer or company to make a credit bid, which is a bid on the property equal to the amount due or less than the amount due. When homeowners take out a mortgage on their home, it’s an agreement that they will pay according to this contract. The monthly payment includes part of the principal and mortgage interest. Every contract is different, but they often have a small grace period before the payment is considered late.

Louisville Bankruptcy Attorney Foreclosure Lawyer

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.

Commercial & Residential Foreclosure

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.

You are still taxed as income for the amount that was forgiven. Many times this is not an option if there are other mortgages or liens on the property. To convey title, it may require a foreclosure sale to get rid of a second mortgage or judicial liens on the property. Getting the property out of your name does stop code violations and condo or homeowner association fees. If you’re behind on your mortgage payments and have an impending pre-foreclosure, you still have options that can help you keep your home or protect your credit. As you can see, there are many ways that you can try and avoid foreclosure on your home, but the legal process can be complicated.

Your lender may have disregarded certain mandatory regulations, may not legally own the debt, or may have filed a wrongful foreclosure. Even if your lender did everything correctly, there are ways we can help. Some states do not require the lender to go to court in order to foreclose, but since Kentucky is a judicial foreclosure state, the lender must file a lawsuit to get the foreclosure started. If you believe you can make up past payments over time, you can pursue a Chapter 13 bankruptcy.

One way to stop foreclosure is an Agreed Order – an agreement between the debtor and the mortgage company to stop all court actions. Sometimes creditors want to collect their money more quickly than you can comfortably afford. You may be able to save yourself and the mortgage company the expense and trouble of foreclosure. But it comes at a cost to you of immediately giving up the home.

If a work out solution is found, it is an informal process and does not go through the courts. If the homeowner does not respond to the summons, the servicer will seek a default judgment. The commissioner will review the motion for default or summary judgment and refer the case back to the judge with a recommendation on whether to sign the judgment.

Honesty is the best policy when it comes to dealing with lenders. Three Federal Banking studies prove the rich use the code to increase their wealth. “Individuals who file experience a sharp boost in their credit score after bankruptcy, whereas the recovery in credit score is much lower for individuals who do not file for bankruptcy.”