Louisville Courts Having Lenders to Try and Work Out Loan
Every Kentucky court is different, and every judge had his/her way of doing something. But one thing is certain, all judges want to lessen the amount of foreclosures. The only way they can affect this is by slowing down the process, make the lenders come to the table, and look for room to negotiate on how to bring the loan current or modify it. Jefferson County is doing this in their courts. Read the story here.
Jefferson County has the highest number of foreclosures going through the court system. It probably also has the highest number of foreclosures per capita. So I’m not surprised that the courts are trying to slow things down. But along with making the lender come to the table, the courts should think about requiring the borrower take financial classes on how to handle money. They are just as likely to fall back into foreclosure eventually, unless they are trained on making better decisions. Borrowers monthly budgets need to be scrutinized, since all too often, they will make sure they have cable tv, but cannot make their loan payments.
The master commissioner sale does not have to be the final solution to this problem, but if you are going to attack a problem, you should attack it from all sides.