Kentucky homeowners who are facing foreclosure run the risk of having their residences repossessed by the mortgage lender. However, there are several options that a homeowner may have if he or she wants to retain control of the property. The federal Department of Housing and Urban Development maintains a list of approved homeowner counselors that can sometimes come up with creative solutions.
In some cases, it may be possible to challenge a foreclosure even if it has already begun. Generally, homeowners will have a set period of time to challenge the action, and may still be able to challenge it after that time has passed. For instance, if the foreclosure was conducted improperly, it may force the lender to begin the process again. This would give the homeowner the option to declare bankruptcy or take other steps to either sell the property or become current on the loan.
For those who don't want to file for bankruptcy, it may be possible to refinance the loan. However, it is more likely that someone behind on his or her payments would ask for a loan modification instead. A loan modification occurs through negotiations between the borrow and lender or between a borrower and lender with the help of a mediator. If approved, the modification makes it easier for the homeowner to make his or her payments.
Filing for Chapter 13 bankruptcy could be an alternative for homeowners who have a regular source of income. Under this chapter, a debtor pays creditors pursuant to a repayment plan that lasts for a period of from three to five years. It is often possible to get current with amounts that are in arrears and then move forward. An attorney with experience in these matters can provide further information about the process.