How to Avoid Foreclosure in Kentucky

Becoming a homeowner is an exciting milestone for families to meet, but it can also bring some uncertainty. What happens if you can’t make your mortgage payments? Will the bank take your house? Keep reading to learn how to avoid foreclosure in Kentucky and what we can do to help.

Understanding Foreclosure in Kentucky 

Foreclosure is the legal process of a mortgage lender taking possession of a property that a borrower has failed to make payments on. However, the majority of loan servicers will give borrowers 120 days to resolve the matter before instigating foreclosure proceedings.

After a foreclosure crisis hit the nation in the early 2000’s, several laws were passed to prohibit predatory lending practices and to require mortgage servicers to provide assistance to homeowners who are late on their payments. Most borrowers in KY have also signed a promissory note that gives additional protection in the event of a default.

How to Circumvent Foreclosure 

There are a few different ways you can evade foreclosure, but most of them come with a few risks that you may or may not want to take on, depending on your situation. For example, filing bankruptcy will stop the foreclosure process with an automatic stay but will also harm your credit in the process. Refinancing could be an option, but if you are already late on your payments, your lender is less likely to work with you.

One easy and affordable way to bypass foreclosure is to sell your house for cash and use the money to pay off your existing mortgage. Then, you can take out a new one for a smaller house or rent an apartment that is more in line with your current budget. This saves you from having to deal with the hassle and expense of foreclosure while still keeping you in a comfortable home.

Top 3 Benefits of Selling Your House for Cash to Avoid Foreclosure

1. It’s Fast and Easy

When selling your home the traditional way, it takes time to get inspections, complete title searches, and negotiate with buyers who have lender requirements to meet. Selling a house for cash is much faster and you can even get offers without making repairs or staging your home for sale first. 

2. It’s Less Damaging to Your Credit 

Both bankruptcy and foreclosure are hard on your credit score, which can take you years to rebuild afterwards. Selling your home and paying off your mortgage protects your credit and gives you an opportunity to try again without having to wipe the slate completely clean.

3. It Offers Financial Relief 

Mortgage payments can be high and hard times are more common for families across the Bluegrass State. Selling ​the house you can’t afford to buy one you can is a great way to ​manage the ​problem before it ​turns into a foreclosure.

Are you having trouble making your mortgage payments and are worried about foreclosure? We can help you sell your house for cash. Contact Haas & Haas Properties in Lexington, KY to get your offer today.