Kentucky Deficiency Judgment Laws. In a foreclosure, the borrower's total mortgage debt frequently exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a "deficiency." For example, say the total debt owed is $450,000, but the home sells for $400,000 at the foreclosure sale.
Some foreclosure attorneys charge an upfront retainer ranging from several hundred to several thousand dollars and then a monthly fee (like $500) for each month that the foreclosure is pending. In addition, attorneys have been known to charge an extra fee on top of this amount, called a "contingent fee," if the case is dismissed due to the firm ...
Feb 26, 2022 · Kentucky Revised Statutes. KRS Chapter 382. ... .370 Power of attorney to convey or release property -- Recording -- Revocation. ... .796 Conspicuous notice of all fees and obligations to be included in real estate purchase contracts -- Civil remedies -- …
The flat fee is charged by the attorneys for representing the homeowners in the foreclosure. Usually, the fee ranges from $1500 to $4000 which depends on how complex the case is. Pros and cons: The advantage of paying the flat fee is that you know exactly what will be the total cost ahead for the foreclosure defense will be. Whether it takes ...
How Judicial Foreclosures Work. A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale. The lender gives notice of the suit by serving you a summons and complaint. You generally get 20 days after service to file an answer.
A few potential ways to stop a foreclosure include reinstating the loan, redeeming the property before or after the sale, or filing for bankruptcy. (Of course, if you're able to work out a loss mitigation option, like a loan modification, that will also stop a foreclosure.)
Kentucky law doesn't provide a statutory right to reinstate the loan before the sale unless the loan is a high-cost home loan. Before filing a complaint to foreclose a high-cost home loan, the lender has to provide a notice of default to the borrower that gives 30 days to cure the default and reinstate the mortgage.
Under federal mortgage servicing laws, if the property is your principal residence, the servicer must contact, or attempt to contact, you by phone to discuss loss mitigation options, like a loan modification, forbearance, or repayment plan, no later than 36 days after you miss a payment and again within 36 days after each following delinquency. No later than 45 days after missing a payment, the servicer has to inform you in writing about loss mitigation options that might be available and appoint personnel to help you try to work out a way to avoid foreclosure. A few exceptions are in place for some of these requirements, though, like if you've filed for bankruptcy or asked the servicer not to contact you pursuant to the Fair Debt Collection Practices Act. (12 C.F.R. § 1024.30, 12 C.F.R. § 1024.39, 12 C.F.R. § 1024.40).
If you miss a payment, most loans include a grace period of, say, ten or fifteen days, after which time the servicer will assess a late fee. Each month you miss a payment, the servicer will charge this fee. To find out the late charge amount and grace period for your loan, look at the promissory note you signed.
Under federal law, the servicer usually can't officially begin a foreclosure until you're more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41). This 120-day period provides most homeowners with ample opportunity to submit a loss mitigation application to the servicer.
In some states, including Kentucky, when the lender is the high bidder at the sale but bids less than the total debt, it can get a deficiency judgment against the borrower.
Some attorneys charge a flat fee to represent homeowners in a foreclosure. Generally speaking, the fee can range from $1,500 to $4,000, depending on the case's complexity.
Most foreclosure defense attorneys structure their fee agreements with homeowners in one of three ways: by charging the homeowner an hourly rate. collecting a flat fee from the homeowner, or.
Whether it takes five months or two years to dismiss the foreclosure—or for the lender to complete the process—you know that this is all you'll pay.
The benefit of paying a monthly fee is that you know what your attorney will cost each month without variation. Also, the attorney has an incentive to keep you in the property for as long as possible (if that's your goal). The downside is that you must pay this amount each month, even if little activity takes place in your case during that time.
Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.
The benefit to this type of fee arrangement is you'll only pay the attorney for the amount of time actually worked on your case. The downside is that while the attorney will probably be able to give you a likely range of what you'll pay in total, you won't get an exact price as far as what the total cost of the foreclosure defense will be—and hourly fees can add up quickly.