Do you have many options when foreclosures on your home has been declared? Is bankruptcy a possible option? These questions and many others could be playing through your mind at a time when your payments on your loan have become delinquent.
The law on foreclosures in your state can determine your options to keep your home.
Kentucky laws, on foreclosures and bankruptcy, may differ; however, there are a few similarities. Most states give a length of time for the borrower to make compliance with the lender. All depends on the clause(s) under which you borrowed the money.
During this period of time, you may have some options available to you.
1. You can attempt to renegotiate your loan
2. You could make another loan to cover your delinquent payments
3. You could try to find a buyer to work with your lending
institution for a short payoff (lending institutions sometimes
allow this in an effort to avoid expensive foreclosures
4. You could file bankruptcy
5. You could ask the lending institution to take your property in
lieu of foreclosure
6. You could let the lender foreclose on your property
Of the options listed above, numbers 1,2,3,5 appear to be your best ones. Foreclosure remains on your credit rating for 7 years and bankruptcy for 10 years. These time frames can be shortened, but by and large, either of these two options aren’t as good.
When you default on your loan beyond the number of days/months that the clause(s) of your mortgage allows, the lending institution files a notice of default (NOD) or Lis Pendens (Latin term). One or both of these terms may appear on your notice from either the lending institution or the Sheriff’s office or the County Commissioner.
Once the NOD is filed, you have a few options:
· A number of days to make good on the notes delinquency
· Try to find alternative financing
· If you get another source of financing, you may be good to go
· Then you are good as long as you meet the payments.
Where can I get money to pay the delinquency?
1. Another lending institution
2. Credit Cards
3. Family or friends
4. Some churches or non-profit groups (don’t rely too heavily on these)
5. Quick finance places, i.e. check cashing or quick loan businesses
6. You write grants to cover your debts (hard to get but not impossible)
If you can’t meet the requirements of the NOD, the next step for the lending institution would be to foreclose. Once the foreclosure procedure begins, any options you might have had to save your property may be over, at least for the moment.
In Kentucky, however, after the sale of your property at the courthouse and if the foreclosure sale price is less than two-thirds of the appraised value, the borrower has a period of one year (12 months) from the date of the sale to redeem the property by paying the amount for which the property sold for at auction, plus interest. Of course you would have to come up with the money.
You do have options on your home before foreclosures take place. Remember, bankruptcy is out of the question. Check out these options. They just might provide a way to keep your home or to keep foreclosure from happening to you.
To get some answers to your questions about your options and to find a possible buyer for your home, contact www.coffeynoteconsulting.com/
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