What is Foreclosure in Frankfort, Kentucky?

Find the right Foreclosure Bankruptcy attorney in Frankfort, KY

Foreclosure is the procedure through which the lender in a mortgage takes ownership and/or possession of the property that secured the original loan. This happens when a debtor in Frankfort, Kentucky has consistently failed to make their payments. Foreclosure often requires the house to be sold at auction. Often, banks want to get rid of the property as soon as they can, in order to collect as much money as possible, and move forward.

In all states in the U.S., including Kentucky, foreclosure by judicial sale is allowed. Under this system, the sale is overseen by a court of law, to ensure that the bank makes a good effort to get a reasonable price at the auction, and that any proceeds above the balance of the mortgage go back to the borrower. In many states, original mortgages are considered non-recourse loans, meaning that if the house is foreclosed and sold for less than the borrower owes, the bank cannot go after the debtor for the remainder. You should consult with an lawyer in Frankfort, Kentucky to see if this is the case. However, this usually doesn't apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in Kentucky?

Most importantly, you must not dismiss the problem. Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be honest with them. One should remember that banks generally don't want to take your house in Frankfort. They issued your mortgage expecting to earn a profit on the interest. Taking possession of, and selling, your house is a last resort for them. Therefore, if you are honest with them about your financial situation, they are likely to make reasonable accommodations to keep you from defaulting.

If you can't reach a solution with your lender, there are other options. You can, for example, try a "short sale," which allows you to sell your house for whatever amount you can get, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank will receive the proceeds of the sale, and the rest of the debt will be forgiven. You may also try a "short refinance" which allows a piece of the debt to be forgiven, and the rest refinanced. This allows the bank to wash its hands of the matter, while taking a comparatively small loss, and allows the homeowner to keep their home.

How Can A Frankfort, Kentucky Attorney Help?

If you think foreclosure is imminent, a good Frankfort, Kentucky lawyer may be your best hope for staving it off. Even if keeping the house proves impossible, a good attorney can minimize the financial effects.

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Life in Frankfort

Frankfort is a city in Franklin County, Kentucky. It is the capital of Kentucky, and with a population of under 30,000 people, it is one of the least populous state capitals in the United States. Frankfort was founded in the late 1700s, shortly after Kentucky became a state, with the specific purpose of serving as the state capital. During the Civil War, Frankfort was briefly occupied by confederate troops, Since the 1960s, Frankfort has seen considerable population and economic growth, mainly due to the construction of a few large (for a city this size) state and private office buildings, and other construction projects. Frankfort is also home to several distilleries who make Kentucky bourbon whiskey, the signature spirit of the region. Some of these older office towers are slated for demolition, with the intention of building a new, more modern, business center, with several smaller buildings providing for office space. There are plenty of lawyers in Frankfort, Kentucky who can handle whatever legal problems you might be facing. If you need any type of legal assistance, whether you're signing a mortgage, getting a divorce, starting a business, or anything else, a Frankfurt, Kentucky lawyer can help.

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