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What is the foreclosure process in Kentucky?
Foreclosure is a legal proceeding to end a borrower’s title to and possession of a property when the borrower defaults on mortgage loan payments. In Kentucky, foreclosures are handled by the courts. The mortgage holder must file a formal complaint with the court; all interested parties, such as other lien holders, must be added to the complaint; the homeowner must be given a chance to respond to the complaint; and a hearing may be held. A court official, usually a master commissioner, oversees any foreclosure sale that occurs.
I have received a foreclosure warning, should I move out now?
No. You are not required to leave your home until it is the property of another person. The homeowner has the right to live in the house until there has been a valid, completed foreclosure sale. Stay in your home to make sure you qualify for any possible assistance. Call us immediately to speak to a qualified counselor at no charge.
What if I have lost my job and have no income?
When you lose your job or are laid off, it is imperative that you demonstrate to the lender that you are actively seeking work and income, or that your household has other resources to continue to pay the mortgage while they attempt to work with you. It may be possible to reduce or suspend your payments during the time you have little or no income and then make up the missed payments when income is available again. Contact a certified housing counselor for assistance (see links below). You may also qualify for the Unemployment Bridge Program which is designed to assist those who are unemployed or underemployed.
After I work with a counselor to find a way to bring my mortgage current, how can I communicate and propose the plan to my lender?
The counseling agencies are provided with a list of contacts for the major lender institutions. Your counselor can help you submit your request for foreclosure prevention in writing with definite dates for payments and negotiate reductions in fees and penalties where possible. An important service in housing counseling can be to review your lender’s workout programs and help you provide the required paperwork and supporting documentation. You will be responsible for making agreed upon payments.
Do the counseling agencies have funds to assist me in bringing my mortgage current?
The legislation that created funding for foreclosure prevention counseling services prohibits using the money for direct financial assistance to borrowers. There may be other resources within the agency or through other community partners. You should talk with your housing counseling agency to determine if there are funds available to bring a mortgage current. Most agencies have information and referral services that may be able to assist you with other expenses, such as prescription costs or utilities.
For more information about the foreclosure process, contact Community
Ventures to speak to one of our experienced housing counselors at 800-299-0267.