Are you a homeowner in Kentucky who is facing foreclosure? If so, you may wonder what your options are and what you can do to save your credit.
This blog post will provide an overview of the Kentucky foreclosure process. Discover how you can avoid foreclosure and what options you have if you can’t make your mortgage payments. Read on if you’re feeling lost and don’t know how to get the help you need.
What is Foreclosure?
Foreclosure is a legal process to end a borrower’s title to and possession of a property when they default on their mortgage loan payments. In Kentucky, all foreclosures undergo a judicial process.
How Foreclosure Be Avoided?
There are a few options you can consider to avoid foreclosure if you are struggling with mortgage payments.
Talk to Your Lender
You should contact your lender if you are experiencing difficulty making payments. You may need to make smaller payments over a longer period if necessary to get back on track.
Get a Loan Modification
You may qualify for a loan modification if you are unable to meet your current mortgage payments. Your loan terms, such as the interest rate or repayment period, may be adjusted.
Sell Your Home
If you are facing financial difficulties, you may want to consider selling your home. It may not be an easy decision to make, but it may be crucial to avoiding foreclosure.
How Can Foreclosure Be Delayed?
If you’re facing foreclosure, you can do a few things to slow down or halt the process.
- Reinstate the Loan: Under Kentucky law, a loan can’t be reinstated before the sale unless it’s a high-cost mortgage. However, you can always check your loan documents to check if you’re eligible for a loan reinstatement and what your deadline is. You might also be able to reinstate the loan with your lender.
- Redeem the Property: You can redeem your property to prevent foreclosure by paying off the entire loan prior to the foreclosure sale. In Kentucky, there is also a redemption period post-sale. Homes that sell for less than two-thirds of their appraised value can be redeemed up to six months after the sale.
- File for Bankruptcy: Despite its shortcomings, bankruptcy can help prevent foreclosure. An automatic stay prevents creditors from foreclosing or collecting debts after a bankruptcy filing. Contact a bankruptcy lawyer to learn more about your options.
What is The Process for Foreclosure in Kentucky?
Foreclosures are complicated, so it is important to understand how they work. In Kentucky, the foreclosure process is judicial and can take up to five months to complete.
A judicial foreclosure begins when a lender files a lawsuit to get a court’s permission to sell the property. By serving you with the summons and complaint, the lender notifies you that they are suing you. The deadline for filing an answer is usually 20 days after service. Without a response, the lender will likely ask the court to grant a default judgment, allowing them to proceed with the foreclosure sale. Depending on the facts of the case, the court could send the matter to the master commissioner for a foreclosure recommendation. The lender wins the case if the judge agrees with the commissioner’s recommendation.
However, if you decide to defend your foreclosure lawsuit, it will go through litigation. The lender might then ask for a summary judgment motion which asks that the court rules in favor of the lender because the case’s critical aspects are uncontested. Upon reviewing the motion, the commissioner may recommend that the court grant the motion, and if the court agrees, the court will enter a judgment in the lender’s favor. As part of the foreclosure sale, the commissioner will prepare a notice of sale, usually posted at the property and published in the local newspaper.
What Are The Impacts of Foreclosure?
Foreclosure can have severe consequences for homeowners and their communities. Foreclosure can lead to homeowners losing their homes and damaging their credit scores. As a result, it can be difficult to obtain a new mortgage or credit line. Furthermore, foreclosure can be a long and emotionally draining process.
The effects of foreclosure can also be detrimental to communities. In foreclosed neighborhoods, property values can drop, causing tax revenue to decline and crime to increase.
Resources for Homeowners Facing Foreclosure in Kentucky
If you are facing foreclosure in Kentucky, several resources are available to you. The U.S. Department of Housing and Urban Development helps homeowners prevent foreclosures by providing counseling and assistance. You can also get in touch with the Homeownership Preservation Foundation (HOPE) Hotline, which provides assistance 24/7.
Avoid Foreclosure by Selling Your Home for Cash in Kentucky
If you’re facing foreclosure, selling your home for cash can help you avoid the hit on your credit score. At Favor Home Solutions, we know you are going through a tough time, so you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.
Our team will take care of:
- Closing on the date of your choice
- Handling all the paperwork
- Paying all the closing costs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!