However, if you are far behind on your house payments, filing a Chapter 13 bankruptcy may be the best choice for you. Under a Chapter 13 debt repayment plan, you have up to five years to bring your mortgage payments up to date. Oftentimes, unsecured debts such as credit cards Louisville Bankruptcy Lawyer or medical bills compromise your ability to make your mortgage payment.

Any bankruptcy is less damaging to your credit than a foreclosure. If you file bankruptcy and get a discharge you can buy a home within two years after a discharge. If you have a foreclosure it will be from 3 to 7 years you will have to wait before you can buy another home. Some of my Chapter 13 clients were able to refinance or purchase a home after making on-time payments for a year inside their bankruptcy.

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The lender can also pursue a deficiency judgment which makes the homeowner responsible for making up any leftover balance owed after the house has been sold. Some lenders will forgive the remaining balance after the home has been sold, but there is a chance that you could be required to pay some or all of the difference. The extent of how much your credit score is affected will also depend on how high your score was before the missed payments, bankruptcy, and/or foreclosure. [newline]A higher credit score will be affected more than one that was already low.

The Foreclosure Process In Jefferson County (louisville)

If a work out solution is found, it is an informal process and does not go through the courts. If the homeowner does not respond to the summons, the servicer will seek a default judgment. The commissioner will review the motion for default or summary judgment and refer the case back to the judge with a recommendation on whether to sign the judgment.

The commissioner’s sale or foreclosure auction is a public auction held by the commissioner’s office. The opening bid is usually set by the servicer and the highest bidder wins the deed to the property. A commissioner’s hearing may be held if the homeowner files an answer to the complaint that presents a legitimate defense or a response to a summary judgment, which is a judgment without a full trial. Now you may have money to move but, that’s when the bank eventually sends it. Also, the lenders vary the offers from case to case, and some lenders don’t offer anything.

Attorneys

To start a foreclosure, the lender files a complaint in Circuit court in Kentucky, after which the debtor has 20 days to file an answer. If the debtor does not timely and properly raise the proper defenses, the lender often quickly files a summary judgment. Then, they win because there are no issues of fact to argue over. Some homeowners file answers themselves and admit the default. When the homeowner is about 60 days behind, the mortgage company will stop accepting payments.

This is important because a rescission is possible if the lender misrepresents facts such as the actual cost or fees. This period provides the only final opportunity for homeowners to reclaim their foreclosed home and avoid eviction proceedings. Missing the length and conditions of the redemption period means you have lost the home permanently. With a foreclosure, it may take three to seven years before you can buy another house.