Sometimes the only way to stop a home foreclosure is by filing bankruptcy.  You are allowed to stop a foreclosure in a Kentucky Chapter 13 Bankruptcy and take up to 2 years to repay arrearages.  Some judges will allow a longer plan and a mortgage company will rarely object to a plan that takes longer. 

A Chapter 7 Bankruptcy only temporarily stops a home foreclosure.   But you can often avoid a home foreclosure by filing a Chapter 7 Bankruptcy together with other methods or by following it up with a second Chapter 13 to stop the foreclosure.   Chapter 20 still works!  If you eliminate unsecured debt in a Chapter 7 bankruptcy then you may be able to afford your home and avoid foreclosure.   If you owe more than the home is worth you may want to allow the foreclosure but properly time an answer to the foreclosure and file bankruptcy to give you more time in the home.

LOAN MODIFICATION - Most mortgage lenders will negotiate payments and home foreclosure fees by adding them to the end of the loan. Home foreclosures are prevented and in some cases interest may be reduced. 

FORBEARANCE PROGRAMS - Some home lenders offer home foreclosure workout programs.  You immediately pay an amount normally including foreclosure legal fees, the balance is added over a period of 6 to 24 or 48 months to the loan. 

SHORT SALES - This is an example of a paying to a lender less than what is owed for a property.   Often a relative or friend buys the property as a straw man and sells it to you.  

Example   Loan $250,000 -- Lender estimate of home value $185,000--  Expected proceeds of a foreclosure sale $150,000 -- Expected expenses of foreclosure $10,000. An offer of $145,000 is made and the house is sold prior to foreclosure sale! 

Beware of companies that make this offer to you after a bankruptcy or foreclosure is filed.  It may be an attempt to steal your home.

Call our Louisville Kentucky office to talk to a lawyer about your Louisville foreclosure