• Foreclosure is the legal means to repossess or take over a home. Kentucky is a judicial state, meaning that most, if not all, foreclosures are processed through the courts. Therefore, the time for a foreclosure in Kentucky varies from county to county, but loan servicers usually allow 90 days before starting foreclosure proceedings.
• Call your servicer as soon as you know you are having financial problems. Do not wait until you miss your first payment. Explain the situation and try to work out a plan with them to make the loan current. Despite what you may think, loan servicers do not want to take your home from you. The foreclosure process is costly to them and they would rather find a mutually agreeable solution that keeps you in your home.
• If you are unable to work with your servicer, contact us immediately to find alternatives. The Protection Center is the only statewide assistance program created by the Commonwealth of Kentucky. Please do not be fooled by all the “credit repair” scams going on. The Protection Center provides access to many counselors and attorneys to help you work with your servicer or to better understand how to avoid further problems at no cost to you.

Helpful Advice

• Open notices from your mortgage loan servicer and respond to them promptly.
• Contact us to schedule a free session with an approved counselor.
• Some businesses could be scams that appear legitimate.  Do not sign anything unless you have a reputable attorney or counselor review the documents. Contact us to find one in your area.
• Prioritize your debt. Make a list of monthly expenses and compare it to your income. For a simple budget tracking worksheet, click here.
• Eliminate unnecessary bills, like a cell phone or cable television, which may be eating-up too much of your income.
• Evaluate assets that can be sold, like jewelry, investments or whole life insurance, which may help bring you up-to-date on mortgage payments.
• Pay bills on time. Even if you only pay the minimum payment, it keeps you in good standing with the creditor.
• Check your credit report every year. Federal law allows all Americans to do this yearly for FREE. Visit www.annualcreditreport.com to get your free credit report and report any errors to the credit bureau that has the inaccurate information.
• Should you need legal assistance, here is a complete list of Legal Aid Agencies and the counties they each cover.