A. No. The Kentucky Homeownership Protection Center is a resource for all Kentuckians. If you have questions about budgeting, credit, utility assistance, home repairs or foreclosure, our staff is here to help you. 

A. No. All counseling services are free to callers through the Protection Center. Some callers may qualify for free legal advice from Legal Aid. Contact us now to find out what possibilities are available for your situation. 

A. A lender originally provided the funds for your loan when you first got your house. A servicer collects the monthly mortgage payments for the lender and if you have an escrow account, they also pay the taxes and homeowner's insurance on your behalf. Often the servicer is a different company than your original lender. 

A. The name of your servicer, their address and phone number should be listed on your monthly mortgage statement or mortgage coupons. 

A. You should have your account number from your mortgage statement or payment coupons, a brief explanation of your situation, a copy of your paycheck stub or other income information and a list of regular household expenses. 

A. Foreclosure is a legal process where a bank or mortgage company can take back a home to satisfy a mortgage debt to them. For a full explanation, please view the About Foreclosure page. 

A. Anyone who has a mortgage or lien on your property can foreclose if you do not repay your loan. 

A. Different types of loans have different time frames. The foreclosure process is also affected by state laws and regulations. Contact us to speak to a counselor who can advise you in your situation. 

A. Yes. Immediately call your servicer to explore loss mitigation strategies and work out options. The sooner you call, the more options you have. If you are unable to work with your servicer, Contact us immediately. A counselor can help you find an alternative at no cost to you. To better understand your options, please view the Alternatives to Foreclosure page. 

A. A counselor can help you determine what your needs are and what plan would work best in your situation. Contact us to speak to someone who can help. 

A. A loan is in default after the first missed payment. Your mortgage contract should state how many payments must be missed before a notice of default is sent. Most servicers will start the foreclosure process after three missed payments, but late charges and fees can quickly add up after the first. If you have missed a payment or are about to, call your servicer immediately and inform them of the situation. If you are unable to work with your servicer, please contact us as soon as possible. 

A. No. You are not required to leave your home until it is the property of another person. 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. 

A. Contact an attorney immediately. Many counties have lawyer referral services that can assist you in finding an attorney. Some Kentuckians may qualify for free legal advice from Legal Aid. Contact us to discover all your options. 

A. There are many unscrupulous people in the world who will take advantage of the panic a homeowner feels when faced with foreclosure. Do not sign anything or make any agreement without speaking to a reputable counselor first. Contact us to find a counselor in your area. 

A. Many mortgage agreements specify that if the servicer has to take legal action, any expenses incurred will become the responsibility of the borrower for reimbursement. This would also include any costs for property preservation and would have to be paid in addition to payments that are due. 

A. The property remains the homeowner’s responsibility until the foreclosure sale has been confirmed. This process can take quite some time depending on the circumstances and the court schedule. Even if the homeowner has vacated the property, it still remains in their name until the sale has been confirmed. 

A. There are tax consequences to any financial situation, such as a foreclosure. Your tax consultant will be able to explain these consequences. For more information about the effects of foreclosure on your taxes, visit the IRS Web site or contact us to speak to a counselor who can answer many questions. 

A. No. Losses from the sale or foreclosure of personal property are not deductible. 

A. Bankruptcy will suspend the foreclosure proceedings and give you time to work out a plan through the courts. However, you should speak to a qualified counselor and/or attorney before taking this course of action. Bankruptcy can lead to more financial problems down the road. Call us immediately to find out your options. 

A. Possibly. Before you receive any money, the remaining balance on the mortgage, outstanding property taxes and court fees must be paid first. Usually, there will be little to no money left for you.