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Louisville Kentucky Home Mortgage
Foreclosure Attorney
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When a home owner needs us as a home
mortgage foreclosure attorney we normally analyze their problem along the
following lines. Does the home owner owe more than what the property is worth?
If so how do we reduce it? If a home mortgage is substantially more than a
home is worth the home owner often needs to eventually let the house go back.
Why pay more than a home sells for which in 2010 was often 20-30% less than
the property tax value. An attorney can eliminate and strip off a second
residential mortgage by filing a Chapter 13 if there is no equity for the second
mortgage. But Congress and statutes prevent homeowners from modifying
underwater 1st residential mortgages leaving them only the option of
abandoning the home to foreclosure or paying more than what the home is worth.
Commercial property and vacation homes can have 1st mortgages
modified but 1st residential mortgages can't be modified by bankruptcy directly
(however you can litigate what was done in servicing, closing, transferring and
other issues). Sometimes property may not meet the needs of
the home owner. The homeowner may have had 4 kids at one time but when grandma
and grandpa are retired, and don't need stairs for 5 bedrooms to clean and heat
the house needs to go. In some cases, homeowners need time to find another
house. A homeowner would normally want to file an answer to the mortgage and
simply later file a Chapter 7 to delay the foreclosure process while they look
for another home. Filing an answer to the foreclosure may give a homeowner
months or years in the home rather than allowing the mortgage company to rush
the foreclosure through by default. Following a foreclosure up by filing a
Chapter 7 will allow additional time.
If we have a high interest rate we may still
need to let a home go back unless we can refinance to a lower mortgage rate.
This can be possible while the homeowner is in a Chapter 13 or the homeowner may
be able to do a mortgage modification while in a Chapter 13. However Mortgage
modifications rarely leave a homeowner better off according to a study by
congress. Instead mortgage companies are normally benefit themselves by
temporarily lowering a mortgage rate and ballooning what homeowners pay over
time. Normally the best answer is to either abandon a home or refinance if a
mortgage rate is too high.
Mortgage modification is rarely an answer. Few
people obtain modifications. When they do the new mortgage is often inflated.
If the home owner has a reasonable home and
mortgage he can afford but repayment was a temporary problem and he only needs
time to catch up the payments probably needs to file a Chapter 13 which can
allow a homeowner to take up to 5 years to catch up a mortgage.
If you need to defend a foreclosure call us now at 502-625-0903
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