Kentucky Foreclosure Representation Attorney
As of spring 2016, there were over 886,000 properties across the U.S. in foreclosure. Nationally, the number of properties that received a foreclosure filing in March increased by 11 percent from February, for an average of 1 in every 1,212 properties. Here in the Bluegrass State, the number of properties that received a foreclosure filing in March was unchanged from the prior month, at 1 in every 2,362, but was 31 percent higher than the same time period in 2015. Each state has its own laws that lay out the mandatory process a lender must follow to collect on a debt that a borrower has failed to pay, including adequate notice, opportunity to make the loan current, and sale of the property. Some states do not require the lender to go to court in order to foreclose, but since Kentucky is a judicial foreclosure state, the lender must file a lawsuit to get the foreclosure started.
The Lexington, KY, homeowner foreclosure lawyers at Bunch & Brock have extensive experience representing clients who have fallen behind on mortgage payments or are facing foreclosure. We have over 35 years of experience advising people throughout Kentucky about how to best address their situation and helping them make the most informed decisions for their circumstances. We know how to use federal and state law to our clients’ advantage, and we work hard to deliver peace of mind. If you believe that you are facing an imminent threat of foreclosure, you may have more options and protections than you think. Learn more about your borrower rights under the law during a confidential consultation with our skilled legal team. Call 859-254-5522 or fill out this online form.
Mortgages are complex documents, cluttered with clunky terms and ever-changing interest rates. Basically, a lender (the mortgagee) gives a loan (secured by the mortgage) to a borrower (the mortgagor). The borrower promises to pay the money back plus interest, but if the borrower fails to do so (defaults), the lender has the right to take the asset that was the reason for the loan (the collateral) and sell it in order to get the money back. The legal proceeding by the lender to end the borrower’s claim to the property is known as “foreclosure.”
Collection efforts begin with a borrower’s first missed payment and are accompanied by a 30-day default letter if there is a second missed payment. Lenders can begin sending notices of their intent to foreclose as early as 60 to 90 days past due, although the borrower retains the right to reinstate the mortgage (until the day of auction) by paying all past due installments, fees, and interest. The lender has the right to refuse partial payments and, unless it receives payment in full, can file a foreclosure action. The borrower must be personally served a summons by the sheriff and has 20 days to respond to the complaint. If the borrower does not respond, the lender may be granted a default judgment followed by an order of sale.
Except in cases where property is found to be vacant and abandoned, the master commissioner of the circuit court is generally required to conduct the sale within 90 days of the court’s entry of the order of sale. Before a property can be sold at a foreclosure auction, the sheriff must post a notice of the sale at the courthouse, as well as at or near the subject property. Prior to January 1, 2016, Notice must also be published once per week for three consecutive weeks in a newspaper of general circulation. Starting in 2016, the notice only needs to be published once, the week before the auction. As long as the borrower is not destructive, he or she can stay in the property until the sale. Once the property is sold to the highest bidder, the foreclosure is official and the new owner can begin eviction proceedings or offer the borrower “cash for keys” to vacate if necessary. Sometimes, the lender will buy the property and relist it for sale.
It is in everyone’s best interest for the lender to get the highest possible price at auction. If the sale price is more than what’s left on the mortgage, the borrower can keep the extra. If it’s less, the lender has the right to collect the deficiency on the judgment. The borrower is responsible for the difference between what the property sold for at auction and the amount of the original loan.
If you are facing foreclosure in Kentucky, you have options. The foreclosure defense attorneys at Bunch & Brock understand the issues, know your legal rights, and will help you determine the best course of action for your situation. Your lender may have disregarded certain mandatory regulations, may not legally own the debt, or may have filed a wrongful foreclosure. Even if your lender did everything correctly, there are ways we can help. Our Fayette County foreclosure attorneys are committed to providing each of our clients with a high level of personal service and knowledgeable representation. To schedule an initial consultation, please call 859-254-5522 or fill out this online form.