Lexington, KY asked in Foreclosure for Kentucky

Q: When does my legal responsibility for my home end during the foreclosure process?

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1 Lawyer Answer
Nick Curtis Thompson
Nick Curtis Thompson
PREMIUM
Answered
  • Foreclosure Defense Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: When you pay off the balance of the loan after the home is sold. Foreclosing the home pays part of the debt. The balance is what you owe. If you dont pay this balance the lender may obtain a judgment and garnish the balance from any checking account or your wages. They may also be able to sell other property. Even if they dont garnish the balance they will charge off the debt, then issue a 1099 to the IRS claiming you profited and had earned income from not paying you. This causes an income tax problem. They may also sell the debt to a debt collector that sues you for the debt. Normally it is best to simply put this behind you by filing bankruptcy.

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