A Deed in Lieu of Foreclosure is when you sign over the Deed to the Mortgage company.  They may agree to a Deed in Lieu of Foreclosure in agreement to not pursue you for the default.  In some cases, you may be able to save yourself and the mortgage company the expense and trouble of foreclosure and bankruptcy.  However, you may be taxed as income for the amount that was forgiven. 

Many people choose to litigate or stay in the house rent free until the house is sold. This allows people to save up house payments they would have made to pay an amount down on a new home or lease with an option to buy.  Under Kentucky laws and regulations most people will qualify for a prime rate government mortgage 2 years after filing bankruptcy (if no foreclosure is involved), or 3 years after bankruptcy and a foreclosure.  We can file an answer to your foreclosure to give you additional time to do a work out with your mortgage company or file a bankruptcy to help avoid or stop the foreclosure.  Here is a general time timeline of the foreclosure process.

The Foreclosure process normally takes less than 6 months if no answer is filed and from 6 months to 2 years if an answer is filed.  Even if you file bankruptcy under Kentucky law, a foreclosure is required to transfer the ownership to the bank or new buyer. If you are stuck in a foreclosure see us for foreclosure help.   Please beware of Rescue scams claiming to help you stop a Kentucky foreclosure.

If you have had a lawsuit filed against you then seek an attorney immediately to answer the lawsuit or file a bankruptcy to save your home. But do qualify for hamp program consideration if you have a bankruptcy or foreclosure filed against you. Here is the presidential hamp program and hamp guidline showing what is required.   If you have a foreclosure lawsuit filed against you this is the link to the state of Kentucky's stop foreclosure website.