One method to help keep a home is by answering a foreclosure complaint. If a person fails to file an answer the bank will foreclose within 3-6 months. A person will normally be evicted following a default judgment and foreclosure sale.
Filing an answer and discovery often allows an individual to stay in the home for an extra 6 months to 2 years. Sometimes just filing the answer and discovery will delay the process even longer. Filing an answer to the complaint is almost always your best option. Doing so gives you time to sell the home or complete a mortgage modification.
Answering a Foreclosure in Kentucky Default Judgments
Answering a Foreclosure in Kentucky Default Judgments⎆ The defense option when answering a foreclosure.
Many homeowners are never told defending the foreclosure is an available option. Many people just give up and simply move out of their home. Then, upon the foreclosure filing, they start paying rent elsewhere. However, by staying in the home, fighting back, and defending the foreclosure it might save years of rental costs. Additionally, there is always the danger of leaving an empty home for someone else to move in or vandalize.
If you fail to file an answer to the foreclosure you may not receive notice of future proceedings or even notification of the foreclosure sale. In extreme cases, by failing to file an answer, debtors have even come home to their possessions sitting on the sidewalk.
⎆ Counterclaims against the mortgage company when answering a foreclosure.
If counter-claims can be made, filing an answer to foreclosure may allow the homeowner to stay in the home for a year or two. During this time you can sell the home or pursue other options. Filing claims back against the mortgage company gives you time to find another home. Fighting the bank will increase attorney fees and bank charges. It can also deduct from your equity. But if there is no equity in the property and you plan to file bankruptcy, fighting in court can be an effective method to stay in your home while you consider other options.
if you do not file bankruptcy prior to the sale and there is a deficiency, it is then 1099 income for the amount of the deficiency. This can create a situation where you have to pay taxes on a home that has been foreclosed. This makes it essential to file bankruptcy before the sale to avoid any deficiency and tax problems.
Click on the following link for a timeline of the foreclosure process.
Resources for Foreclosures
Kentucky Foreclosure Law Process • Video
Fraud, Stay, and Discharge Adversary Complaints • Video
Louisville Kentucky Foreclosures and Your Options
Louisville Kentucky Foreclosure Defense
If you are facing foreclosure be sure to see us about your options. Contact my office right away to start the conversation. Nick C. Thompson, Attorney: 502-625-0905
