Lexington-Fayette Kentucky Foreclosure Help, Defense, Laws and Process


Home ownership is a good investment decision. In Lexington-Fayette, Kentucky home owners have been on the rise due to the mortgage help made available to them. But with the sub prime mortgage crisis, the credit crunch and the recession being felt all over the United States, the cost of servicing a mortgage versus the value and income from the property has seen a drastic rise in the number of foreclosed properties in Lexington-Fayette, Kentucky. Foreclosures can be stressful, but the best way to avoid all this is by contacting your lender as soon as you realize that you cannot honor the terms drawn up in the contract. Loan modification may be your only solution to saving your home. The faster you contact your lender the better the chances he will re-negotiate the payment terms.

If you find yourself at risk of foreclosure or if you are already in the early throes of a foreclosure that has materialized, then contacting a government approved foreclosure avoidance counselor would be the best thing to do at the onset. Government help is inexpensive and the wisest route to undertake. The government assistance counselor is available within your county. These counselors are available to assist you in finding the best routes possible on avoiding foreclosure. They educate you on your rights as a mortgage owner and assist you in reinstating your loan.

Stop Foreclosure in Lexington-Fayette, Kentucky

If you are at risk of foreclosure then the following tips will help you stop foreclosure:

  1. Time is of the essence. Do not ignore the problem. The further behind you are at your payments, the harder it will be for you to reinstate your loan.
  2. Contact the lender as soon as you realize you are facing financial difficulties. He may allow you to re-negotiate the terms on the contract.
  3. Respond to all mails sent to you by the lender. These notices may contain vital foreclosure prevention tips.
  4. Be aware of your mortgage rights. This will ensure that they are not trampled on.
  5. Contact your HUD-approved counselor. The assistance provided will be vital to you since they act according to the states guidelines.
  6. Prioritize your spending. Mortgage payment should be high on your priority list.
  7. If possible, liquidate your valuable assets in order to off-set your loan.
  8. File for bankruptcy if you’re overwhelmed. This will buy you time to gather your resources to pay the defaulted amount.

You should always notify your lender on your financial changes. Re-negotiating the payment terms may help you save your home.

Lexington-Fayette, Kentucky Foreclosure Process

In Lexington-Fayette, Kentucky the law stipulates that only judicial foreclosures be carried out. The timeline set for this foreclosure is approximately six months. Though Kentucky foreclosures occur under court order, there is an exemption made to abandoned properties. The lender here is given power to take possession of the properties when the borrower defaults. This process involves the following:

  1. The lender is required to file the suit through his attorney in the circuit court. The borrower is then given 21 days to respond.
  2. If he fails to respond then a default judgment id declared by the court.
  3. A summary judgment is issued and notice of sale is issued.
  4. The notice contains the default amount and is published weekly for 3 consecutive weeks.
  5. Before the sale, the property is evaluated and the sale price should be two thirds of the appraisal amount.
  6. If the sale price is less than the two thirds stipulated then the borrower is given a year to cure the loan inclusive of the interest.

Repairing your credit will be essential if you plan on undertaking other ventures that will have you securing loan services. Foreclosures decrease your credit scores.