If you are in foreclosure, you need a stable, reliable, and experienced partner by your side. A foreclosure attorney is a person who is able to explain all the alternatives. Finding and hiring the best foreclosure attorney is hard to do. You have to find an attorney who doesnt use just one method to stop your foreclosure. He helps you select the best solutions your facts and situation. An experienced Louisville Kentucky foreclosure attorney can guide you through
- short selling a house,
- modification of your mortgage,
- workout agreement where the arrearage is added into the loan,
- Selling the home before it forecloses.
- Staying in the home longer and residing in the home while you search for another home.
- Doing a Deed in lieu and give the home up.
- Avoiding a judgment against you.
- Stop any income tax debt from a 1099 c.
- Avoiding code violations that may cost you fines or even jail. As long as the property is in your name, you are responsible for maintenance and lawsuits, even from trespassers. Even filing bankruptcy does not automatically get the property out of your name.
- Chapter 7 to delay the foreclosure, and eliminate any deficiency or tax debt
- Chapter 13 where you catch up the mortgage payments over 3 to 5 years.
In overcoming the challenges and recover your losses he can explain and provide answers. In this article, we examine some of the most important things to know in foreclosure and in hiring your attorney. Every foreclosure case is different and it may need different skills.
What is foreclosure?
In short, a foreclosure occurs when the mortgage goes into default. Normally this is done by not making payments but not paying the property taxes or keeping insurance can also trigger a foreclosure. When the homeowner is about 60 days behind, the mortgage company will stop accepting payments. The bank has to follow the proper process to foreclose, which includes waiting the required periods. If the judge orders a sale the commissioner will advertise the property for sale for 2 weeks and then sell the property.
The lender files a complaint in Circuit court in Kentucky, and the debtor has 20 days to file an answer. If the debtor does not answer, the bank wins by default. If the debtor does not timely and properly raise the proper defenses, the lender will often quickly file a summary judgment and simply win because there are no issues of fact to argue over. Some homeowners file answers themselves and admit the default, This only speeds up the foreclosure.
This is a time to decide whether to keep a home or whether to surrender it. Whether you keep it or abandon it, there are issues. 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 need to apply with the lender for a mortgage modification or file a Chapter 13 in bankruptcy court.
Hiring the best foreclosure attorney Who can you trust?
One of the critical problems is the attorney who filed the foreclosure works for himself and the bank. He is not your lawyer. He is working to make the maximum profit from you. When you talk to a servicer or collector, they often record the call to use it against you in court.
Property investors also keep a close eye on foreclosure homes in hopes of purchasing the property at a lower price than the average on the market. Property investors will attempt to purchase your home at a bargain. Many people lose their homes or equity by trusting foreclosure rescue schemes which promise help. Some places will often pretend to be government or law offices. How can homeowners stop the process of losing their property, and what can be done to prevent this undesired outcome?
What do Louisville foreclosure attorneys do?
If you are somehow involved in a situation, which is related to protecting your legal rights, it is only natural that the first thing that comes to mind is finding a good lawyer. And this is a step in the right direction. Hiring a foreclosure attorney in the early stages of the case dramatically increases the likelihood of success. Many defenses must be made at the start of the case, or they are waived forever. If you don’t raise the defenses on time, you lose. With each day that passes, you can lose rights.
But what can you really expect from a foreclosure attorney, and what do you need to know before choosing the best available option?
Introducing you to all of your options
Understanding your options is one of the most important items when it comes to increasing your chance of overcoming foreclosure. A well-educated and experienced foreclosure attorney will be able to explain the different available alternatives to you and make professional suggestions on which path to take. The more experience a foreclosure attorney has, the better chance you have of keeping your home. Some of this does depend on you. Chapter 13 allows you to catch up the payments but you then have to make payments on time.
There are different defense strategies that you could take, including loss mitigation, loan modification, short sales, and workout agreements. All these involve working with the lender. But there are numerous defenses like truth in lending and other statutes. Litigation often only delays the process but delay may be what you need if you need time to sell a home.
Litigation and defending the foreclosure in state court or in Chapter 13 bankruptcy in federal court, is possible. It is the role of your attorney to provide a detailed overview of the advantages and disadvantages of both for you to make the right decision. Finding an expert Louisville foreclosure attorney in Kentucky guarantees a smoother process and a higher chance of winning a case.
Filing an Answer and an Entry of Appearance
An Entry of Appearance is filed at the start of the case so all of the court notices will go to your foreclosure attorney. You shouldn’t be negotiating with the bank and their attorney. The EOA is filed with the court and the bank’s attorney. This gives insures your attorney knows what is going on.
Your foreclosure attorney needs to be transparent, reliable, capable, and legitimate. He can stop the harassment. Remember to get a qualified and experienced attorney to file the answer within 20 days of your being served. He can take over the remaining process of filing the discovery, any request for mediation and defensing any summary judgment.
Support and represent you at mediation and settlement conferences
Settlement conferences are common. Settlement supports the idea of offering the bank and the homeowner a way to resolve the issue and prevent foreclosure from taking place.
Your foreclosure attorney should represent you at such conferences. His suggestions should increase the possibility of reaching an outcome that will be in your favor. If you don’t have a local Louisville foreclosure attorney to represent you, you face the bank’s attorney alone. Normally that attorney will have thousands of cases he has prosecuted. Most bank attorneys are extremely knowledgeable and experienced, leaving you little chance against someone who is familiar with the laws and procedures in detail.
Work towards getting a loan modification
In most cases, foreclosure takes place as a result of the inability of the homeowner to temporarily make payments on his loan or mortgage. This may be a result of job relocation, unexpected medical situations, divorce, or other issues. One potential defense strategy is to pursue a loan modification.
A loan modification aims to amend your loan terms to make it possible for you to afford the payments under your current situation. A loan modification doesn’t cost anything, but it is complicated to process. It can take a lot of expertise and practical know-how to convince your bank that a loan modification should take place. This is another crucial part of the foreclosure process that your attorney can be of help in asking for the application.
You must gather and present all the necessary financial information that the bank may require to reach a decision. For the bank to agree, it must be convinced that your income is reasonable for a loan modification. If successful, you will be approved for a new loan at often a lower interest rate. You will be able to continue owning your property.
Support you in pursuing loss mitigation
Loss mitigation is the mortgage negotiation that can help the homeowner keep their property. The most common option is a workout where the arrearages is added to the principle. If you go through the process alone, you are probably not familiar with which loans carry loss mitigation options that may be helpful in your situation. Not all lenders will be open enough to share this information with you. Having this in mind, it is up to your attorney to lay out all the available options when it comes to loss mitigation and guide you on what the best way to handle loss mitigation would be.
Find mistakes and use them to your advantage.
In a complicated world, one can never be sure of anything without checking first. Even in matters related to the law, mistakes can sometimes occur due to human error, technological failure, and more. There are about 130-140 different legal defenses to any collection lawsuit.
There is a chance that the bank may have made a mistake in foreclosing your home. Identifying errors is no easy task for the ordinary homeowner. However, a foreclosure attorney has the experience to spot issues and may uncover the information which may help your foreclosure. If the mortgage company breaches the contract or does not perform preliminary steps, they may not have the right to foreclose. If a foreclosure law was violated, or the foreclosure party is not the owner of the mortgage debt, your attorney can help you see the missing pieces and respond accordingly in your favor.
Hiring the best foreclosure attorney Chapter 7 or 13 bankruptcy
Chapter 13 bankruptcy is one resort you can use to catch up payments. If other tactics and defenses are not likely to be successful, you may want to skip those options. Waiting too long to file a Chapter 13 only increases the amount which has to be repaid.
Filing for chapter 13 bankruptcy will give you up to five years to recover your payments and will allow you to keep your property. It is another potential alternative to foreclosure a qualified attorney can assist you with and offer experience and information that you may otherwise struggle to discover.
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. Even if you plan to surrender the home, Chapter 7 will probably be necessary because bankruptcy is a tax exempt method to discharge debt.
Hiring the best Louisville foreclosure attorney
Foreclosure may be a dramatic and emotional moment for your family. A qualified foreclosure attorney can offer professional advice, solutions and provide security. Knowing that you are in good hands will help you get through the process more efficiently and can make you feel calmer and less stressed.
We have gone through some of the primary responsibilities of a foreclosure attorney. We looked at how a qualified Louisville foreclosure attorney can be of help when it comes to avoiding foreclosure. It is worth noting that one of the most important things to remember before making your choice is to check whether the attorney is qualified. If possible, do as much research as you can to find out how many years of practice they have had as a foreclosure attorney and what their work experience and education is. Don’t rely on advertising. This way, you will be a step closer to making an informed decision, increasing the chance of you keeping your home and all the lovely memories you have in it.