The Kentucky Homeownership Protection Center (Protection Center) provides free help to Kentucky residents who are currently delinquent on their home loan, or may become delinquent, and are facing a possible foreclosure. Read on to learn more about the Protection Center, what types of assistance are available, and how to obtain help.
To learn about foreclosure procedures in Kentucky, and programs to assist Kentucky homeowners, visit our Kentucky Foreclosure Law Center.
The 2008 Kentucky General Assembly established the Protection Center to deal with the state’s foreclosure crisis. It is a joint effort of the Department of Financial Institutions, Kentucky Housing Corporation, as well as several other agencies, and is administered by the Kentucky Housing Corporation. The goal of the Protection Center is to help struggling Kentucky homeowners keep their homes.
The Protection Center provides assistance to at-risk homeowners including:
To learn about other options for dealing with foreclosure, visit Nolo's Foreclosure section.
Homeowners who are at risk of falling behind in their mortgage payments or who are facing foreclosure due to delinquent payments can speak with a housing counselor free of charge. The counselor can provide advice and information about various options to avoid foreclosure. For example, counselors can provide assistance with:
To find out more about loss mitigation, see our Alternatives to Foreclosure area.
The counselor will review your particular financial situation and help you find the best solution to your specific situation, as well as let you know if you qualify for any government programs. (To learn about government programs for distressed homeowners, visit Nolo's Government Foreclosure Prevention Programs area.)
If you’ve decided to execute a short sale, deed in lieu of foreclosure, or simply let the foreclosure proceed, a counselor can provide transitional counseling as well. (See our Short Sales and Deeds in Lieu of Foreclosure area for more information on these topics.)
You can obtain information about:
In addition to free counseling services, you could qualify for free legal advice depending on your income, assets, and the type of problem you have. Contact the Protection Center at 866-830-7868 to find out about eligibility.
In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, Kentucky received over $148 million to provide assistance to homeowners who are struggling to make their mortgage payments. To do this, Kentucky set up the Unemployment Bridge Program, which makes mortgage payments on behalf of unemployed and underemployed homeowners.
General eligibility requirements. To be eligible for assistance from the program, you must have experienced a job loss or reduction in income due to changing economic conditions through no fault of your own, and demonstrate a need for assistance.
The program will advance an initial payment of up to $12,500 to pay past-due amounts and reinstate the loan, as well as make upcoming payments, though the maximum amount of assistance is limited to:
Program assistance is in the form of a forgivable loan.
Learn more about qualifying for Unemployment Bridge Program assistance and find out the details of the program in our article Kentucky Mortgage Assistance for Unemployed Homeowners.
To learn more about the Hardest Hit Fund and the various state programs funded by it, visit out Hardest Hit Fund topic page.
In addition to seeking help from the Protection Center, you can call your loan servicer (the company that collects and manages your mortgage payments) directly to be evaluated for foreclosure prevention options.
Your servicer's name and contact information is listed on the monthly mortgage statement or coupons you receive to make your payments.
The Protection Center is a no-cost resource for Kentucky homeowners. If you find a company that advertises similar services for a fee, such as for counseling services or applying to Unemployment Bridge Program, it is most likely a scam. You should not pay for any services associated with this type of assistance.
To request help through the Protection Center, go to www.protectmykyhome.org and click on the “Get Free Help” button to fill out an online form.
You can also call the Protection Center at 866-830-7868 (toll-free in Kentucky) to get immediate assistance.