The thought of not having a place to live causes an incredible amount of stress. We want you to keep your home, and the memories that come with it. This is how we can do that.
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.
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. We understand that the memories you’ve made there are what truly made your house your home, and we want to do everything we can to help you preserve that.
What Happens When You Receive a Foreclosure Notice?
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.
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. It’s best to accept this summons at that time. If you don’t, the lender will simply place a public notice in the newspaper.
You have 60 days to respond to the summons, and failure to do so may result in the court entering a default judgment against you. You should also be aware that once the impending foreclosure is made part of the public record, unscrupulous scam artists (who are not true attorneys) might contact you offering help. Being aware of these scam artists is important, as you could lose money that you can’t afford, and end up with disastrous results.
Having your home go into foreclosure can be a crushing blow to you and your family. A bankruptcy petition can stop it before it happens.
How to Avoid Foreclosure in Louisville Kentucky
Nobody wants to lose their home, and thankfully, there are multiple options to avoid it if you’ve been served a notice of foreclosure sale. If you need to stop a foreclosure, here are four ways to do that:
1.) Bankruptcy (Chapter 7 and Chapter 13)
Contrary to some bankruptcy myths, there are times when filing for bankruptcy may be the right solution for an impending foreclosure. When the bankruptcy court approves your petition, it will issue an automatic stay. This effectively stops all creditors and debt collectors from attempting to collect from you during the bankruptcy process, and also stops foreclosure proceedings.
2.) Loan Modification
Under a loan modification, borrowers and lenders can negotiate new terms of a mortgage. If the lender agrees, this can take place whether or not you are current on your payments, late, in default, have filed for bankruptcy, or are in foreclosure. The modifications could result in lowered interest rates, a lowered principal, or reduced attached fees. The lender could also extend the length of the term, or hold monthly payments to a designated percentage of the household income.
3.) Short Sale
This procedure allows you to sell your home even though the proceeds will be less than what you still owe. It is up to the lender as to whether you will still be responsible for the deficit or whether they waive it.
4.) Deed in Lieu of Foreclosure
This is a transaction where the homeowner (the “borrower”) transfers the title to the lender, and that lender then cancels the foreclosure.
If you need to stop a foreclosure in Louisville KY, and would like to learn more about which option will work best for you, call or text Attorney Tracy Hirsch at (502) 435-2593. Don’t waste another minute worrying about your home. Hirsch Law is here to help you.