A Deed in Lieu of Foreclosure is when you sign over the Deed to the Mortgage company.  They may promise to help in exchange to not pursue you for the default.  They promise this "help" to save the mortgage company the expense and trouble of foreclosure.  However this "help" causes tax problems and places a foreclosure on your credit report.

Many people choose to file bankruptcy, litigate or stay in the free rent until the house is sold. This allows people to save up the funds from the house payments for a new home or lease with an option to buy.  Under Kentucky laws and regulations most people will qualify for prime rate government mortgages 2 years after filing bankruptcy (if no foreclosure is involved) or 3 years after bankruptcy and foreclosure.  

The foreclosure and bankruptcy process takes less than 4 months if no answer is filed and 1 to 2 years if an answer is filed.  Even if you file bankruptcy under Kentucky law a foreclosure is required to transfer the ownership to the bank. If you are stuck in a Louisville Kentucky foreclosure see us for help.