The notice of default is about a one to three-month-long process. This legal notice is a public record and states that you’re behind on your loan. Once the mortgage lender has filed the notice, it’s basically the last call to action that they give homeowners. If they don’t come up with a solution to pay off the debt, they will foreclose on the home. To prevent foreclosure procedures from beginning, contact your mortgage loan servicer as  Louisville Bankruptcy Lawyer soon as you know you will miss a payment. Servicers may agree to a work out plan with homeowners to make the loan current.

 

Overview Of The Foreclosure Process In Kentucky

 

You don’t have to sue to exercise your three day right of rescission but you do have to send the letter. That is what the Supreme Court decision stated in Jesinoski v. Countrywide Home Loans. This is about two major Kentucky foreclosure defenses TILA, RESPA. For information about how TILA and RESPA integrate check out the CFPB bulletin.

 

How Can I Ask The Attorney To Stop The Foreclosure Process?

 

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.

 

This is important because a rescission is possible if the lender misrepresents facts such as the actual cost or fees. This period provides the only final opportunity for homeowners to reclaim their foreclosed home and avoid eviction proceedings. Missing the length and conditions of the redemption period means you have lost the home permanently. With a foreclosure, it may take three to seven years before you can buy another house.

 

You should consult a Lawyer in Louisville, Colorado to find out if this is the case here. This typically does not apply if the mortgage has been refinanced. The best time to hire a foreclosure attorney is before the foreclosure process officially begins.

 

The attorney should respond with the requested verification, and they are typically required to halt any foreclosure actions until that is provided. As of spring 2016, there were over 886,000 properties across the U.S. in foreclosure. Nationally, the number of properties that received a foreclosure filing in March increased by 11 percent from February, for an average of 1 in every 1,212 properties. In your letter, you should include your full name, the address of the property in question, details about your mortgage, and a clear request for verification of the debt. You can request that your lender provide detailed documentation of the debt, like account statements and notices.

 

Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. But what if a third party is the highest bidder at the auction? If they offer more than the amount you currently owe, this results in excess proceeds. This is any amount of money above your original loan or what you currently owe. First, every debtor must provide documents and exhibits to the Bankruptcy Court. Trustees look for hidden assets, income, & transfers in these documents.

 

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.

 

The borrower only has to give notice to the mortgage company of the right to rescind. Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor. They have options to help homeowners through hard financial times.

 

He must also guide you on the best way to handle loss mitigation. You work with the lender to sell the property for less than the loan is worth. You are doing the work for the mortgage company and being forced out of the home early.

 

This triggers a tax problem unless the person can prove he was insolvent at the time of the 1099C filing. Just because you and the mortgage company agreed you were not liable does not mean the IRS won’t find you liable. A Chapter 7 bankruptcy will only postpone the foreclosure of your home. Once you file Chapter 7 bankruptcy, one of several things will happen. An automatic stay will be granted for your foreclosure during the bankruptcy proceedings, keeping the lender from pursuing past-due payments. Or, the lender will ask the judge to move forward with the foreclosure, which will continue despite the bankruptcy filing.