The attorney should respond with the requested verification, and they are typically required to halt any foreclosure actions until that is provided. As of Kentucky Bankruptcy Lawyer 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.

 

That’s why it takes a lot of expertise and practical knowledge to convince your bank that a loan modification should take place. This is another part of the foreclosure process that your attorney’s help is crucial in properly asking for the application. This is the time to decide whether to keep a home or whether to surrender it. If you file Chapter 7 bankruptcy, you won’t have to be responsible for income taxes from a 1099 and it delays the sale. If you want to save the home, you may apply with the lender for a mortgage modification or file Chapter 13 in bankruptcy court.

 

Find Pro Bono Lawyers And Free And Low-cost Legal Help

 

Filing your own answer without an attorney will often speed up the foreclosure process. [newline]Improper charges to the loan can be challenged by motions to deny the mortgage company’s claims and lawsuits may be brought against the mortgage company or servicer. A Kentucky statutory right or claim against a law firm or lender can often be litigated in bankruptcy court which is often more generous to debtors. It’s essential to note that the redemption period is not the same as the right of redemption with is the right to bring the property current. The right of redemption is a state law homeowner’s right to stop a foreclosure sale by paying off the mortgage debt before the sale happens.

 

Kentucky Solutions helped me sell the house and avoid foreclosure proceedings. Filing either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy will stop any home foreclosure action by your lender under the automatic stay provision of the U.S. However, you will still have to catch up on your house payments if you want to keep your property. Chapter 7 Bankruptcy is often used to avoid having any deficiency or 1099-C tax debt as a result of a foreclosure. Unpaid debt becomes income under the tax code when the lender claims a loss.

 

Or you may need to file a bankruptcy to delay, avoid or stop the foreclosure. The O’Bryan Law Offices team of experienced foreclosure attorneys has been helping homeowners throughout Kentucky, and Indiana navigate through the complicated legal process of pre-foreclosures and foreclosures. If you receive a notice of default, it’s not too late to take action. Our attorneys will explain your legal options to avoid foreclosure, like bankruptcy. But it often helps homeowners work through their financial struggles and see the light at the end of the tunnel. If you are delaying the foreclosure to sell the home or get a modification in the months or years it takes to foreclose, a homeowner often makes no insurance, property, tax, or mortgage payment.

 

Unlike foreclosures, credit agencies do not notate a pre-foreclosure on your credit report. The only way it will be reflected on your credit score is from the missed payments. Those missed payments will be noted on your credit report and drop it down. Both bankruptcy and foreclosure severely affect your credit score and can be difficult to recover from. There are also some advantages and disadvantages to selling and buying a pre-foreclosure property.

 

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.

 

Our Attorneys Are Knowledgeable In Multiple Areas Of The Law

 

The first step of the foreclosure process is the pre-foreclosure. While it sounds as scary as foreclosure, you can still make up your missed payments and get back on track. Filing for Chapter 7 will only temporarily stop the foreclosure process, giving you about six months to a year of added time to find another home or sell a property. However, Chapter 7 may reduce your debt enough to help make the home affordable. Thank you so much for all your help with the short sale of my home. How would you be able to get me out of this situation free and clear??

 

Or, if you want to save your home, filing for Chapter 13 bankruptcy might be the answer. To find out the options available, speak with a local bankruptcy attorney. During the preforeclosure period, the servicer can charge you various fees. Also, in most cases, federal law requires the servicer to let you know how to avoid foreclosure, and most mortgage contracts require the servicer to send you a breach letter.

 

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.

 

One way to stop foreclosure is an Agreed Order – an agreement between the debtor and the mortgage company to stop all court actions. Sometimes creditors want to collect their money more quickly than you can comfortably afford. You may be able to save yourself and the mortgage company the expense and trouble of foreclosure. But it comes at a cost to you of immediately giving up the home.