Foreclosure Help in Kentucky
A change in your financial situation or sudden financial hardship can lead to missing loan or mortgage payments and the eventual foreclosure of your home. You can attempt to find solutions to these problems but luckily some programs and organizations can help you in this devastating time.
Before your lender/bank forecloses on your home you can attempt to reach an agreement in which you temporarily or permanently change the terms on which monthly payments are made. You can try to modify your loan to temporarily pay a lower monthly amount until your financial situation stabilizes again. Alternatively, you can apply for a forbearance allowing you to make smaller or no payments for a determined amount of time. You will be expected to repay the missed installments once you and your lender have agreed on a repayment plan. A more permanent solution would be to refinance your loan. You can refinance with your current lender or a new one and take out a new mortgage, with lower payments or rates, to pay off the old loan and hopefully save you money in the process.
If it becomes impossible to avoid a foreclosure, you can agree to a deed in lieu of foreclosure and necessarily give back your home to your lender or engage in a short sale in which you sell your home to a third party. Both these options will still negatively impact your credit score, and it does not necessarily exempt you from outstanding money or income tax owed.
There are also options if you need assistance navigating or preventing a foreclosure:
- Brighton Center (859 491 8303)
Homeowners can find support with loss mitigation and foreclosure prevention here. Counselors will help you understand foreclosure and work as a third-party with lenders and lawyers to assist you in avoiding it.
- Kentucky Homeowner Protection Center (866 830 7868)
This assistance program was created by the Kentucky state government to provide free financial counseling. They can refer you to Legal Aid to receive free legal advice if you meet the eligibility requirements.
- Kentucky Solutions (502 212 2482)
They will assist a homeowner experiencing hardship to get a loan modification free of charge. They will advocate on your behalf and help you through the loan modification process in order to avoid foreclosure.
- Fannie Mae and Freddie Mac Flex Modification Program
The HAMP and FMERR refinancing support programs of The Federal Housing Finance Agency expired in 2018 and 2019. Homeowners can, however, still find support if Fannie Mae or Freddie Mac owns your loan, and you could be eligible for a 20% lower monthly payment with their Flex Modification Program.
Have a specific question about Avoiding Foreclosure in Kentucky? Check out our Foreclosure FAQ’s section.
If you are a homeowner seeking help to avoid foreclosure or because your lender started the foreclosure process, it’s essential to know that there is help available.