Stop Kentucky Home Mortgage Foreclosures
“What is the debt collection process if I stop paying my home mortgage or credit cards?” What happens is something like this.
- The mortgage company, car loan or credit card will call your home and place of employment after you quit paying, non-stop, for about 60-90 days trying to get payment by making threats of foreclosure, garnishment and use psychological tactics of shame blame guilt and fear to control and manipulate you psychologically to pay them. When the account is 60-90 days behind the home will be place into a foreclosure status or the auto will be repossessed.
- After 180 days, the account will be charged off for income tax purposes and either sold to a third party debt collector who will repeat the collection attempts or it will be sent to an attorney to file a foreclosure lawsuit.
- Finally, a lawyer will process the foreclosure or collection lawsuit for about 6-12 months aattempting to garnish wages, bank accounts and attaching a homes with a Judgment lien. Only after the attorney obtains a judgment can
a) wages be garnished or
b) bank accounts be garnished or
c) a home can be foreclosed.
The Kentucky Home mortgage foreclosure process can take years and delayed even further if the lawsuit is answered and/or a bankruptcy is filed. Over 6 months normally passes from the time payments stops until it gets to a lawyer for a collection or foreclosure to be filed. If you answer a Kentucky Home Mortgage foreclosure or collection lawsuit , it would be about at least 6 months after that before the judgment can be obtained and a sale date is set. If a bankruptcy is filed and filed at the right time, it may be delayed an additional 6 months or longer.
Filing a bankruptcy before a judgment takes away even the possibility of a garnishment. Clients can use credit card payments to catch up on a car or house payments, or start saving up money to buy or move to a new home. There is even the possibility of suing abusive creditors to enforce your rights. It all depends on your attitude of whether to be a sheep or a wolf. Generally, the threats the debt collectors make are simply untrue, often they are a basis for a lawsuit if they are proven by recording the call and when you know how little power the collector actually has, they become laughable.
Nick C. Thompson Louisville Kentucky Foreclosure, Bankruptcy Attorney.
