While your non-exempt property will be sold by a bankruptcy trustee to pay off your debt, there are federal and Kentucky exemption laws that can protect certain types of property, including your home. It is in everyone’s best interest for the lender to get the highest possible price at auction. If the Louisville Bankruptcy Lawyer sale price is more than what’s left on the mortgage, the borrower can keep the extra. If it’s less, the lender has the right to collect the deficiency on the judgment.
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This bankruptcy option will help you avoid foreclosure by making up missed payments while paying on current monthly payments. You’ll need to make sure that the payments you make during the bankruptcy will be sufficient enough to cover both current and past payments on your mortgage. Chapter 13 bankruptcies last three to five years which can often be enough time for homeowners to get caught up on their mortgages.
A foreclosure is much worse on your credit history than a bankruptcy. The homeowner only needs to pay the redemption to the court clerk, and then the commissioner will immediately convey the property back. Redemption is why lenders often bid 70% of the mortgage when they bid at foreclosures. Offering over 66% cuts off the rights of foreclosed homeowners to redeem the property from foreclosure. If you can’t reach a solution with your lender, there are other options.
Creditor’s Rights And Foreclosures
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.
Some clients have had their FICO scores up to 720 within 1-2 years after filing a Chapter 13. This guide aims to demystify the steps involved in Kentucky foreclosure laws and explore the options available to homeowners facing foreclosure in Kentucky. A judicial foreclosure state provides more protections and potential defenses to avoid foreclosure borrowers than the deed in trust process. Foreclosure can occur when homeowners do not pay their mortgage payments, second mortgage payments, home equity loans or property taxes. After default, the servicer may send the homeowner a notice of default, usually after the loan is 30 days past due. Servicers could start sending threats of foreclosure as early as days past due.
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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. Schwartz Bankruptcy Law Center is here to help you get your life back.
This is when having qualified foreclosure attorneys on your side will be invaluable. The foundation of Reimer Law is to provide our clients with quality service, while still meeting timeframe requirements. The collective longevity and knowledge of the Firm’s shareholders have been contributing factors with regard to the high quality of work performed.
You may still owe a deficiency, and it triggers an income tax debt from a 1099-C for the deficiency after doing the work. Finally, you are liable to lawsuits from the purchaser for property defects. You went through all that paperwork to buy the home to ensure compliance with laws like the Truth in Lending Act (TILA).
You pay your regular mortgage payment for the month, plus the total of everything you owe due to forbearance, in one single payment. Federally backed mortgage lenders cannot require missed forbearance payments to be repaid in a lump sum, but non-federally backed lenders may do so. The most common types of consumer bankruptcy are Chapter 7 and Chapter 13. Once bankruptcy is filed, you receive an automatic stay, which will stop foreclosure on your home, as well as stopping lawsuits, garnishments, and harassing collection calls. The stay lasts only until the bankruptcy proceedings are complete, but it will eliminate many debts which may make it easier for you to pay your mortgage and keep your home. Even if the mortgage company agrees to not pursue the deficiency, the IRS regulations require the bank to turn in a 1099-C.
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. We constantly strive to create and improve upon a workflow process that reduces the amount of time it takes for our client to recover its asset, but without sacrificing the quality of the process. 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.
That’s why it takes a lot of expertise and practical knowledge to convince your bank that a loan modification should take place. This is another part of the foreclosure process that your attorney’s help is crucial in properly asking for the application. This is the time to decide whether to keep a home or whether to surrender it. If you file Chapter 7 bankruptcy, you won’t have to be responsible for income taxes from a 1099 and it delays the sale. If you want to save the home, you may apply with the lender for a mortgage modification or file Chapter 13 in bankruptcy court.
The redemption period only lasts 6 months after the sale date. A Default judgment is granted when the homeowner fails to respond to the complaint within the designated time frame of 20 days for Kentucky. This allows the lender to proceed with a foreclosure without any further input from the homeowner and often without notice. It is important for homeowners to file an answer and assert their defenses in order to avoid foreclosure.
Each title survey includes a complete and accurate examination of the record title of the real property to be foreclosed. We identify all potential title issues, and more importantly, we propose and implement solutions. We notify our client of additional interests they may have in the property and ensure that all of the client’s interests are protected. All of these elements of our title work are geared to ensure that the client receives a clear and marketable title. Best of all, our title work is performed at a reasonable cost to you.