As a homeowner, foreclosure is probably one of the scariest things you can experience. While nobody wants to think about it actually happening, it’s better to know what you should do rather than scramble in the moment. Here is our guide to dealing with foreclosure in Lexington, KY.
What is Foreclosure?
Foreclosure refers to a legal process lenders undertake in order to acquire property that is in their arrears. Foreclosure doesn’t happen overnight, however. In fact, lenders are required to give their borrowers notice (also called preforeclosure) before they can foreclose on a home.
Under the foreclosure laws in Lexington, KY, homeowners get the right to:
- Receive a preforeclosure, or “breach letter,” notice
- Apply for loss mitigation
- Get the chance to respond in court after receiving the foreclosure notice
- Pay for the remaining debt and stop the foreclosure sale
- Receive special protections if the homeowner is in the military
- Get current on the loan
- Redeem the property after the foreclosure sale
- File for bankruptcy
- Take home any excess money after a foreclosure sale
What Can I Do If I’m Facing Foreclosure?
First, breathe. There’s no need to feel embarrassed about facing foreclosure as it is more common than you may have realized. In fact, the number of foreclosures has gone up since the pandemic began, so you’re really not alone.
- Talk to Your Lender
If you’ve noticed you’ve fallen behind on payments, you need to contact your lender right away. A common mistake people make is failing to coordinate with their lenders. When it comes to foreclosures, many lenders are, in fact, more than willing to reach a compromise with their borrowers. This is because they’d rather get a fraction of the loaned amount back versus none at all.Talk to your lender and ask about any adjustments they’re willing to make on your loan. This will probably be in the form of lower interest rates, an extension on your missed payments, or longer payment terms. For this step to work, however, you need to do it as soon as you miss a payment.
- Conduct a Short Sale
A short sale is a term used to describe a sale that occurs because the owner owes more than the homes value. Before you conduct a short sale, you’ll need to ask for permission from your lender.While a short sale can provide you with the money you need to pay off your debts, you need to think carefully before doing so. Short sales are unfavourable for many borrowers because it can negatively affect one’s credit score.
- Sell Your Home to a Professional Home Buyer
Another option you can consider is to sell your home to a professional cash homebuyer. Cash homebuyers are willing to purchases homes in any condition or situation, including foreclosure. When you sell to a cash homebuyer, you can get a fair cash offer in as little as 72 hours, giving you the money you need to pay off your loan. If there are any sales proceeds left over after paying off your loan, according to Kentucky foreclosure laws, you have the right to keep it.
The most important thing to remember when being at risk of foreclosure is to act fast. The more time you waste, the fewer options you’ll have.
NEED TO LEARN MORE?
If you live in Lexington, Kentucky, and are interested in selling your home, we can help here at Rylo Homes. We are a real estate solutions company that specializes in solving your real estate problems for you. We are cash homebuyers in Lexington, KY, and will act as your personal guide during your home selling process.
Our goal at Rylo Homes is to improve the overall quality of housing for the residents at Lexington, KY. We buy houses in Lexington, KY in just about any condition and situation, including foreclosure, late mortgage payments, or fair market value. When you choose to sell to us, you don’t have to wait weeks and months just to get good offers. We’re direct buyers and we pay in cash to arrange a quick close. For more information about our home buying process, give us a call at (502) 317-8553 today.
