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News/Events

New Program to Help Homeowners Affected by Job Loss Launched Statewide

For Immediate Release

Brenda Weaver
(502) 564-7630, ext. 439

Monday, April 11, 2011

Charla Jackson Peter
(502) 564-7630, ext. 454

New Program to Help Homeowners Affected by Job Loss Launched Statewide

New funding is available to help Kentuckians bridge the gap.

Kentucky Housing Corporation (KHC) Chief Executive Officer Richard L. McQuady announced a new loan option to assist eligible homeowners in making their mortgage payments as they seek employment.  “There are many hard-working Kentuckians who are doing all they can to provide for their families and keep their homes, even after losing hours at work or losing their jobs entirely. This program will help Kentucky’s workers bridge the gap until they can obtain steady employment.”

The Kentucky Unemployment Bridge Program (UBP) will help prevent avoidable foreclosure for homeowners who have experienced a job loss or reduction in employment income due to changing economic conditions, through no fault of their own, and can demonstrate a need for assistance.  The job-related event must have occurred after January 1, 2009.

“While there have been some signs of improvement, many Kentuckians are still unable to find employment,” said McQuady.  “We have learned that it is better for the stability of our communities and neighborhoods to keep families in their homes than to let them slip into foreclosure, which is why UBP is so important for Kentucky.”

Kentucky is one of 18 states and the District of Columbia that received funding for this type of program through the U.S. Department of the Treasury’s Hardest Hit Fund.  These states were chosen because they have been significantly impacted by unemployment and/or steep home price declines in the economic downturn.  Kentucky received almost $149 million for the program.

The UBP, administered by KHC, will provide eligible homeowners up to $20,000 or 12 months of assistance, whichever occurs first.  The forgivable loan can be used to make the monthly payment and  up to $7,500 for any reinstatement fees to bring a delinquent mortgage current.  Homeowners must meet program guidelines and restrictions, and their mortgage lender must participate in the program.  Assistance is available on a first-come, first-served basis.

Homeowners interested in applying for the UBP should contact the Kentucky Homeownership Protection Center (Protection Center) at www.ProtectMyKYHome.org.  The Protection Center, administered by KHC, provides a centralized location for information on public services to assist Kentuckians in keeping their homes.  Homeowners can find information on the foreclosure process, learn about options, and make smart choices to avoid losing their homes.

“We receive calls every day from Kentuckians who have paid thousands of dollars to companies that promised to help them with their mortgage problems only to find themselves deeper in debt and the foreclosure process,” said McQuady.  “Homeowners should not trust any business or person who guarantees they can prevent foreclosure or asks for money before performing any services.”

The Protection Center is the only statewide foreclosure initiative endorsed by Governor Steve Beshear.  If homeowners are currently delinquent on their home loan, in danger of becoming delinquent, or are just starting to have financial problems that may affect their ability to pay their mortgage, options are available.  The earlier the homeowner takes action, the more options will be available.  All assistance through the Protection Center is free to every Kentucky homeowner. 

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www.kyhousing.org

Kentucky Housing Corporation, the state housing finance agency, was created by the 1972 General Assembly to provide affordable housing opportunities.  As a self-supporting, public corporation, Kentucky Housing offers lower-than-market rate home mortgages, housing production financing, homeownership education/counseling, rental assistance, housing rehabilitation and supportive housing programs for special needs populations.

Kentucky Housing Corporation prohibits discrimination in employment based on race, color, religion, sex, national origin, sexual orientation, gender identity, ancestry, age, disability or veteran status.