Kentucky Foreclosure Defense Lawyer
Foreclosure is a process that no homeowner wants to go through. However, encountering financial difficulties and failing to make mortgage payments can trigger the process. As a borrower, you still have rights, regardless of whether the foreclosure process has begun. Kentucky foreclosure law allows you certain rights, and our attorneys are here to defend those rights. If you need a foreclosure defense lawyer Kentucky, O’Bryan Law Offices is here for you.
At O’Bryan Law Offices, our foreclosure defense lawyers can help you not only save your home, but also give you the tools you need to find your financial footing. We understand that keeping up with monthly payments while you’re struggling financially is difficult. One way to avoid foreclosure that many people forget about is bankruptcy. Filing for bankruptcy can give you the breathing room you need to save your home. To schedule a free consultation with our Kentucky bankruptcy lawyers, please call our office at 502-339-0222 today.
O’Bryan Law Offices Can Help If You Are Facing Foreclosure
Our foreclosure lawyers are here to help you find a foreclosure alternative that works for your individual situation. Facing a foreclosure proceeding can cause a lot of stress, but working with an attorney helps. Don’t try to tackle this complicated and stressful process on your own. Let an experienced lawyer from O’Bryan Law Offices evaluate your foreclosure case and inform you of your legal rights.
Our foreclosure lawyers help our clients with the following during their foreclosure cases.
- Identifying any protections you qualify for under Kentucky law and federal law
- Negotiating with the mortgage company or bank in order to achieve a loan modification or restructure your payments
- Handle all paperwork on your behalf, ensuring that it is filled out and filed correctly and on time
- Helping you sell your home if necessary, as well as negotiate with your lender
- Helping you file for bankruptcy to prevent a foreclosure auction and creditor harassment
What Is a Foreclosure Defense Lawyer?
If you’re facing foreclosure and you want to defend against it, working with a foreclosure attorney is your best bet. Defending against a bank, a mortgage company, or another lender can often be a confusing process. State foreclosure laws are often highly complex, and these cases require special knowledge and experience to handle properly.
Homeowners who are facing foreclosures should seek legal aid from a qualified foreclosure defense attorney. A foreclosure lawyer will evaluate your case, determine the right defense strategy, and explain your options to you so that you can make an informed decision. If possible, they can help you avoid foreclosure by the bank or the mortgage company.
What Does a Foreclosure Attorney Do?
Most importantly, a foreclosure attorney represents you in court, ensuring that you follow all the procedures and processes. They also help you fill out paperwork, meet important deadlines, and even achieve a loan modification if necessary. We explore all possible options on your behalf, helping you decide which course of action is best for you.
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.
How Does the Kentucky Foreclosure Process Work?
When you’re facing foreclosure, it’s important to understand how the process works as a whole. You may have many questions, such as “When is it too late to stop foreclosure?” Each state has its own unique laws and protections for borrowers, as well as specific processes. Once you have fallen behind on your mortgage payments, you still have time and options that will help you prevent or avoid foreclosure. In the following sections, we briefly outline the Kentucky foreclosure process.
What Is Preforeclosure?
Let’s say you have fallen behind on your mortgage payments, but the foreclosure process has yet to officially start. This period is known as preforeclosure. The servicer of your mortgage can begin to charge fees during this time. Some examples of these fees include late fees and inspection fees. However, your lenders are also required to send you a breach letter, as well as inform you of how you can avoid foreclosure.
In most cases, you will have a ten or fifteen-day grace period after you miss a mortgage payment before you’ll be charged a late fee. Every month that you fail to pay will incur another late fee.
When Does Foreclosure Start in Kentucky?
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.
Defaulting on mortgage payments means that the foreclosure will be judicial. This simply means that the mortgage company or lender has filed a lawsuit against you and asked the court to allow a foreclosure sale. If this happens, your lender must notify you of the lawsuit by serving you with a summons and a complaint. Kentucky law gives borrowers 20 days after service to answer the complaint.
If you fail to give an answer, the court will likely award your lender with a default judgment. This allows the lender to foreclose on your home and hold a sale. However, you can defend against the foreclosure lawsuit. This is when having qualified foreclosure attorneys on your side will be invaluable.
Kentucky Foreclosure Sale
If your lenders are able to foreclose on your home and begin a sale, they will first submit a credit bid. This means that they bid on your home for the price of the total amount you owe, plus any associated fees. They may also bid less than this amount, which is called a short sale. If the lender is the highest bidder at the sale, but they bid less than the total amount you owe, they can seek a deficiency judgment against you in court.
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. You are entitled to these excess proceeds.
Kentucky law states that the new owner of the home can claim and possess the property after they have given you ten days’ notice. They must obtain a writ of possession from the court.
How Can Bankruptcy Stop My Foreclosure?
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.
Chapter 7 Bankruptcy
If you file for Chapter 7, this will stop the foreclosure, but only for a certain period of time. You may be able to save your home for a few more months, which could give you the breathing room you need to prevent the sale altogether. We recommend speaking with a Chapter 7 lawyer for more information on how this chapter of the Bankruptcy Code can help you.
Chapter 13 Bankruptcy
Chapter 13, on the other hand, could save your home altogether. This chapter allows you to set up a payment plan rather than liquidating your assets to pay back your creditors. However, you must take a bankruptcy means test to see if you qualify. Speak with a Louisville bankruptcy lawyer to learn more about your options.
Other Ways to Stop a Foreclosure in Kentucky
If you don’t think bankruptcy is the best answer for your situation, our attorneys can help you pursue other options. Two prominent options are reinstating the property and redeeming the property.
In Kentucky, you do not technically have a right to reinstate your loan unless it is a high-cost home loan. Lenders of high-cost loans must give at least 30 days’ notice of default to the borrower. Check your mortgage loan to determine whether or not you have a right to reinstate your loan. If not, there is still a chance that you can negotiate reinstatement with your lender.
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.
When to Hire a Foreclosure Lawyer
The best time to hire a foreclosure attorney is before the foreclosure process officially begins. This way, you can explore all of your options ahead of time, which could allow you to avoid the process completely. Working with an attorney may even give you the leverage you need to strike a deal with your lender. We generally recommend speaking with a lawyer as soon as possible after you receive the breach letter. Waiting too long could prevent attorneys from being able to help you effectively.
Contact O’Bryan Law Offices for Foreclosure Defense in Kentucky
When you’re facing foreclosure and worrying about losing your home, don’t settle for working with a legal aid office. Working with an experienced attorney with years of experience will, in most cases, give you a better understanding of your options, as well as your rights as a borrower. O’Bryan Law Offices has extensive knowledge of the Kentucky foreclosure process not only from law school, but also from our real-world experiences helping consumers save their homes. If you’re facing foreclosure, schedule a free consultation with our attorneys today at 502-339-0222.