If you are behind on your mortgage payments past 120 days, the mortgage lender may attempt to repossess your house and sell it at auction to recover part or all the remaining loan balance. This process is known as foreclosure. In most cases, foreclosures are final, preventing you from getting your house back (unless you decide to re-purchase it).
If you are facing foreclosure, you may feel that you are out of options for keeping or selling your house. However, you can still sell your house for cash to a local buyer in Louisville, Kentucky. If you sell your house before it goes to auction, you can get out of the mortgage and keep your credit intact. Selling your house for cash is the fastest way to unload the property with few, if any, mortgage penalties.
Understanding the Foreclosure Laws in Kentucky
Kentucky is known as a lien theory state. Your house/property is collateral for the home loan. The document that places any lien on the property is called a mortgage. Non-judicial foreclosure is not available in Kentucky. Meaning, your case will go to court and be overseen by a judge. The foreclosure process typically lasts 150 to 180 days.
The lender addresses the court in a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure. The bank then sells the house as part of a public sale or auction. The lender also files a complaint in county court and what is referred to as lis pendens. A lis pendens provides public notice that your property is going through foreclosure.
The Kentucky Foreclosure Process
The foreclosure process in Kentucky involves four main steps:
1. Foreclosure Complaint or Notice
A foreclosure complaint is filed in the county court, where you have 28 days to file an answer. Otherwise, a default judgment is entered, and the foreclosure proceeds. If an answer is filed, the case is adjudicated by summary judgment or trial. Once adjudicated, a foreclosure decree is entered, and the Sheriff is directed to sell the property through a foreclosure sale.
2. Property Appraisal
Three disinterested freeholders must provide an appraisal or estimate of the property’s value being foreclosed. The property cannot be offered for less than 2/3 of the appraisal or appraisement, as it is more commonly known.
3. Public Notice
The foreclosure sale must be advertised 30 days in advance of the sale, and such advertisement must occur once per week for three consecutive weeks before the sale.
4. Writ of Execution
The Sheriff handles foreclosure sales in Kentucky, and these sales take place at the county courthouse. After the sale, the Sheriff will return a writ of execution indicating the sale has taken place. The court will determine if the sale has been undertaken legally, which is called a confirmation. Once a confirmation occurs, any right of redemption is extinguished, and a deed is issued to the buyer.
The Benefits of Selling Your House for Cash
If you attempt to sell your house fast before foreclosure, you need to be aware of your options. Listing your house on the market and hiring a real estate agent is not likely to help you avoid foreclosure. It can take several months to get the house ready to sell, find a buyer, and close. A For Sale by Owner (FSBO) can take twice as long.
If you want to avoid foreclosure, the best solution is to sell your house fast for cash. When you work with one of our local house investors, you can avoid the hassle of putting your house on the market, preparing it to sell, and showing it multiple times. Our investors can close on a deal in as little as seven days, allowing you to get from underneath the mortgage much faster.
Avoid Foreclosure and Sell Your House Fast
Before you contact the realtor or list your house on the market, do not pass up the chance to sell your house as-is for cash. We Buy Real Estate is here to help you find the simplest solutions to get cash-in-hand quickly without wasting time and money on repairs and closing costs. To schedule a quick, no-obligation walkthrough with one of our local house buyers, call 502-458-2722.