We can make sure your lender is following the law, and we may be able to help you negotiate a better and more affordable option with your mortgage lender. For loans federally backed by Fannie Mae or Freddie Mac, you may be eligible for a COVID-19 Payment Deferral or similar repayment plan, depending Louisville Bankruptcy Lawyer on your lender. After forbearance ends, you return to making regular mortgage payments for the same amount and interest rate you had pre-forbearance. Missed mortgage payments are added on to the end of your loan term and are paid back when the loan is refinanced, the house is sold, or the mortgage is paid off. You will be notified of a pre-foreclosure by receiving a legal notice of default.
Foreclosure Legal Services
By community, here are examples of ways Stites & Harbison attorneys and staff have made a difference in their hometowns. Beyond his legal endeavors, Chris cherishes the time spent with his family and friends, emphasizing the importance of personal connections. With a steadfast commitment to excellence, collaboration, and personal integrity, Chris Wiley continues to be a valued asset to both MDK and the Louisville legal community. Inaccurate credit reporting can have a detrimental impact on your financial well-being. We’ll work to correct errors and ensure your credit report reflects accurate information. This procedure allows you to sell your home even though the proceeds will be less than what you still owe.
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).
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Best Lawyers employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of the quality of legal services. Our belief has always been that the quality of a peer review survey is directly related to the quality of the voters. The third scenario is that the lender will wait for the bankruptcy case to end and then pursue the foreclosure. Regardless of what happens with your foreclosure after filing for Chapter 7 bankruptcy, chances are you will not be able to keep your home. If you cannot qualify for a refinance, you can look into a loan modification, which reworks your current loan.
Federal law prohibits beginning a foreclosure before the borrower is over 120 past due on their mortgage payments. This period of time gives borrowers time to pursue a loss mitigation option from their lender. Attorney Motion has a professional team of mortgage foreclosure attorneys, property foreclosure attorneys & foreclosure defense lawyers to fight for your home.
What this means is that when loans transfer and they lose the documents, the lenders cannot effectively sue to collect. National Disability Rights Network – Locate legal advocacy service providers by state for people with disabilities. Contact your lender or servicer as soon as you realize that you have a problem. The mortgage holder, noteholder and servicer can all be the same company or all different companies. High interest rates and late fees can make it unmanageable, however, we can help you get things back under control. The FIRST STEP is to decide whether you want to save/keep your home or sell your home.
However, if you first file Chapter 7, you eliminate the unsecured debts. Then you only have to repay the 20,000 in mortgage arrearages. This is Chapter 20, where you first file a Chapter 7 to eliminate the unsecured debt before filing Chapter 13. It can lower what you repay by 2/3rds and makes it more likely that you will finish the Chapter 13.
They aren’t in the real estate business, and expect to make money through interest on the loan, not by selling your house. If you are up-front with them early on, they will probably make a reasonable effort to accommodate your financial system if it will keep you from defaulting. 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. In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months.
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.
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 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.
The foreclosed home belongs to the owner who can stop the sale with a bankruptcy until the auction. After that he may voluntarily leave or the judge orders the borrower to turnover the property to the purchaser. Homeowners are given a minor amount of notice by the court before the sheriff evicts the residents. The lender can bid up to the total amount owed, including fees and costs, or it may bid less. In some states, including Kentucky, when the lender is the high bidder at the sale but bids less than the total debt, it can get a deficiency judgment against the borrower. The property becomes “Real Estate Owned” (REO) if the lender is the highest bidder.
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.