Your Hardin County Foreclosure Defense Attorneys

Using Bankruptcy to Save Homes from Foreclosure in Elizabethtown, Radcliff and Central Kentucky

The thought of losing your home to foreclosure is unthinkable. Sometimes debt and other unexpected financial obligations manage to surprise you and take over your life, forcing you to miss mortgage payments. Regardless of your circumstances, missing enough payments will make you vulnerable to a foreclosure lawsuit in Kentucky state court.

At Musselwhite, Meinhart, Staples & Hafley, our team treats our clients like family. We strive to do everything in our power to fight for their rights and protect their interests, so our number one priority in foreclosure defense cases is to help our Kentucky clients stay in their homes. Our Radcliff foreclosure defense attorneys have many years of experience navigating the legal processes involved in halting foreclosures through bankruptcy.

If you are at risk of losing your home through foreclosure, do not wait to call (270) 351-6032 or contact us online to schedule a free consultation. We can work quickly to halt foreclosures and protect your home.

What is the Foreclosure Process in Kentucky? When Does it Begin?

The good news is you will not be at risk of foreclosure if you only miss one or two monthly payments. Things happen, and while you may be subject to late fee penalties mandated by your mortgage agreement, you will not be at risk for foreclosure.

Your bank or lending institution must wait 120 days – or approximately 4 months – from the date of the initial missed payment before they can file a foreclosure lawsuit. This federal protection gives you a significant amount of time to catch up on missed payments or file for some form of loss mitigation, including a loan modification, which can further delay when a foreclosure process can begin.

The reality is that banks and lending institutions do not typically like to pursue foreclosures. Foreclosure is an expensive, resource-consuming process that leaves them with property they often did not intend or want to acquire. This means that your lender may reach out during your 120 days of nonpayment to try and find a mutually agreeable solution that avoids foreclosure.

Always speak to a qualified legal representative before accepting any modified deal with your lender, as they will be looking out for themselves, not you. Also consider speaking to a lawyer if your lenders’ communications begin to turn into creditor harassment.

How Foreclosures Work in Kentucky

• Bank begins foreclosure proceedings after missed payments. Once 120 days have passed since the first mortgage payment was missed, your lender has the ability to file a foreclosure lawsuit in Kentucky state court. For the purposes of your planning, you should assume your lender will file as soon as they are legally permitted to do so. Our Radcliff foreclosure defense attorneys can evaluate your situation and advise on immediate next steps if you believe you will soon be the subject of a foreclosure lawsuit.
  
  
• You have 20 days from the date the complaint is filed in court to formally respond. If the complaint goes unanswered, your lending institution can request a default judgment to automatically win the suit. Many times, in the absence of a response or action from legal representation, the default judgment is granted. This will dramatically accelerate the foreclosure process and could lead to you quickly and irreversibly losing your home.
  
  
• If you respond, litigation begins. It is essential you and your legal representation formally respond to a foreclosure complaint in court before a default judgment can be granted. By responding and objecting to the complaint, the suit will move into litigation and prevent a speedy sale.
  
  
• Summary judgment is filed by your lender. Because you presumably have not kept up with your mortgage payments, your lending institution will most likely file for a summary judgment; a judge will in most cases grant one, opening the door to a foreclosure action. It is still important to force a foreclosure suit into the litigation phase to buy you and your legal representation more time to negotiate with your lender and pursue various forms of relief, including filing for bankruptcy.
  
  
• Foreclosure is approved, followed by an auction and sale. Once approved by the court, a foreclosure auction is preceded two appraisers assessing the value of your property, the posting of a foreclosure sale notice to the front of the home, and the placement of auction advertisements in a local paper. The lending institution is often the only bidder at the auction itself, leading to them purchasing the property and placing your continued tenancy in immediate jeopardy. If the purchase price is less than what the property is actually worth, your lender may be able to pursue a deficiency judgment against you, which requires you to pay the difference.

Can a Foreclosure Be Stopped?

It is important to take decisive action before a judgment is rendered in the state court. While there are some forms of relief available for homeowners after a judgment has rendered, you are less likely to prevent a foreclosure once the auction is imminent or has been completed.

If you gather the necessary funds to bring your mortgage “current,” you may be able to work with your lender to cancel the foreclosure and resume regular payments. Kentucky does offer a redemption period of 6 months, meaning if you are able to reimburse the auction winner of the sale price plus fees, you can potentially “redeem” your home.

More than likely, though, you will not have the financial resources to reinstate or redeem your home if you were unable to keep up with your mortgage in the first place. Luckily, bankruptcy is another form of foreclosure defense that can help you protect you.

Schedule a free consultation to learn more about how bankruptcy can help stop foreclosure and help you retake control of your finances. Call (270) 351-6032 or contact us online today.