The state has coordinated resources among various non-profit organizations, attorneys, lenders, and others to create the Kentucky Homeownership Prevention Center. There is advice for all residents, whether they are struggling or not. Homeowners can receive mortgage and foreclosure assistance from the center. Learn more.
The federal government is providing the state millions of dollars as part of the hardest hit fund, which will provide mortgage help to the unemployed and people who have had a reduction in their total household income. The funding will be used to create the Kentucky Unemployment Bridge Program. Click here to get help.
The state of Kentucky as well as the federal government has certified dozens of non-profit agencies as HUD approved. This means they will offer high quality counseling services at a very low cost, or for free in some cases. Learn where to get housing and Kentucky HUD foreclosure counseling.
Louisville Kentucky, and the entire Jefferson County area, have created a foreclosure prevention program for owner-occupied residential properties. It ensures that homeowners who are behind on their mortgage and lenders meet to discuss all available options to try to stop the foreclosure and keep the family in their home. The program started July 1.
If a foreclosure notice is sent to a homeowner in Louisville, the notice now needs to include information about the reconciliation program. Volunteers and other community activists will also visit each home to encourage participation in the prevention program. Kentucky also has several other assistance programs. Learn more on those.
While the foreclosure process can continue while the lender and homeowner meet and go through the mediation program, what will help delay the process and ensure it works is that local judges have agreed to hold off on ordering home auctions or sales. They are providing time so that the banks, lenders, and owners have met to negotiate an arrangement that works for all parties that can be impacted. This delay, and the ongoing mediation process itself, should also help the local court system which is being overwhelmed by cases that result from forced home sales.
A grant provided by Kentucky is funding the social service outreach organizations’ efforts to contact homeowners. The charities and organizations that are participating, and that are working through the Kentucky Housing Corporation, will attempt several personal contacts at the borrowers residence in order to notify the family of the mediation that is available to them. They will go over all terms and conditions of the the foreclosure prevention program.
If contact is made with the borrower, the housing counselors will then proceed to the next step and will work with the homeowner to complete a request for mediation. They will also work together to create a financial package to be provided to their mortgage servicer, in order to set a hearing date. What is provided in this plan can also help the parties reach a deal.
As long as the lender or mortgage servicer participates in this program, then the foreclosure process and sale of the home may still occur if no settlement can be reached between the parties. So the program will not help everyone. This is not always possible.
Instead, the court said it will “encourage” lenders and banks to modify loans in any method that permits borrowers to stay in their homes. Or another result may be that the borrower will be provided more time to arrange alternative housing and leave the property in a over time in a more respectful manner. Dial 1866-830-7868 for more information on this solution.
This non-profit organization has several offices across Kentucky. They partner with a number of national groups, such as NeighborWorks America, in order to provide state residents access to the widest variety and most intensive foreclosure prevention and free counseling programs. Homeowners are given the opportunity to attend workshops, or one on one counseling sessions, with HUD certified counselors. Thousands of families in Kentucky have benefited from this agency. Read more.
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