The Kentucky Unemployment Bridge Program, which is funded through the Hardest Hit Fund, provides mortgage payment assistance to unemployed and underemployed homeowners, as well as those who have experienced long-term or permanent disability. Keep reading to get an overview of the program, learn how much assistance is available, and find out if you are eligible. (To learn about foreclosure procedures in Kentucky, and programs to assist Kentucky homeowners, visit our Kentucky Foreclosure Law Center.)
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, $7.6 billion in aid was allocated to the 18 states, along with Washington, D.C., that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis. (Learn more about the Hardest Hit Fund.)
Kentucky was awarded $148 million in funds through the Hardest Hit Fund to help eligible homeowners avoid foreclosure. (Learn more about the Kentucky foreclosure process.) Additional funding was approved in 2016. To help homeowners, Kentucky set up the Unemployment Bridge Program (UBP).
Unemployed and underemployed homeowners (or those with a qualifying disability) who have fallen behind in their mortgage payments can use UBP funds to bring their loan current and cover future mortgage payments. The program will pay up to $15,000 to reinstate a delinquent mortgage (including late fees, interest, taxes, insurance, and costs) and help pay future mortgage payments. If the entire $15,000 is put towards reinstatement, you will not qualify for monthly mortgage assistance. If you don't use the full amount to reinstate, any remaining assistance may be used for monthly mortgage payments up to 12 months or until the maximum assistance amount is reached.
UBP assistance is provided in the form of an interest-free, forgivable loan secured by a junior lien that is recorded against the property. You only need to repay the loan if:
To be eligible for UBP assistance, you must meet all of the below criteria.
Additionally, your existing mortgages and savings must meet the below criteria.
You are not eligible for assistance through UBP if one of the below conditions applies to you.
Servicer participation in this program is voluntary. (A mortgage servicer is the company that collects monthly mortgage payments from borrowers on behalf of the owner of the loan, as well as tracks account balances, manages the escrow account, handles loss mitigation applications, and pursues foreclosure in the case of defaulted loans.)
If your mortgage servicer has not signed up to participate, then you are not eligible to receive assistance from this program. To find out if your servicer is part of the UBP, go to http://protectmykyhome.org/Pages/Servicers.aspx.
To apply for UBP assistance, go to www.ProtectMyKYHome.org and click on “Get Free Help” to complete an intake form. You can also apply by calling (866) 830-7868.
There are a number of scammer websites on the Internet purporting to be Hardest Hit Fund application sites. The Kentucky Housing Corporation is the only agency authorized to administer the UBP in Kentucky. The program is free and you should not pay for any services associated with applying for assistance.
Go to www.ProtectMyKYHome.org and click on “Unemployment Bridge Program” or call (866) 830-7868 for more information.