Mortgage Foreclosure Workout Louisville Kentucky Attorney

A mortgage workout agreement  is when the mortgage company will agree to placing overdue payments at the end of the mortgage extending the length of the mortgage to prevent foreclosure.   This does not reduce the interest rate or the principle that is owed normally.   Some modifications and workout agreements will allow a mixture of both modifying the interest rate, principle or placing overdue payments at the end of the mortgage.   These agreements are rarely approved by banks unless it is in their best interest. 

Workout agreements are the most likely and easiest to obtain non judicial cure for a foreclosure.   If the Debtor can show that the inability to make the payments was only temporary the mortgage company is likely to approve an agreement.   Another factor is that if you can show the mortgage company that there is sufficient equity in the property then you are also more likely for them to approve an agreement.  

These agreements often have to be forced upon the banks.  They are rarely approved immediately.   If you are served with a foreclosure lawsuit you should consult with an attorney immediately.   Talking to the loan company or with their attorneys will not normally slow down or temporarily stop the foreclosure.   Instead while you are working on the home loan workout what often happens is that the banks attorneys will file for a default judgment and sale of the home while you are negotiating the agreement.  If you instead file an answer to the foreclosure it will delay the sale while you attempt to correct the home loan delinquency.   It may also become necessary to file a Chapter 13 bankruptcy to force the payments upon the home loan company if they are unwilling to accept you catching the payments up. 

Nick Thompson Louisville Kentucky Foreclosure Workout Attorney