For Immediate Release
May 7, 2012
Media Contact: Charla Jackson Peter
(502) 564-7630, ext. 454
Program helped over 1,500 Kentucky homeowners avoid foreclosure
Homeowners who lost their job due to the economy have a resource to help them with their mortgage payments. The Unemployment Bridge Program provides a forgivable loan to homeowners who have lost their job or had a reduction in employment income through no fault of their own.
Over 1,500 homes have been assisted through the Unemployment Bridge Program since it launched in April 2011. The program will pay a homeowner’s entire mortgage payment for 12 months or up to $25,000, whichever occurs first. Of the $25,000, $12,500 can be used for reinstatement--all related fees and payments to bring the loan current.
“One of the biggest hurdles is educating the public that there truly is a legitimate program available to assist them. There are so many scams that homeowners think that this program is either too good to be true or that it is difficult to qualify,” said Richard L. McQuady, chief executive officer of Kentucky Housing Corporation.
Kentucky was one of 19 states and the District of Columbia to receive funding for the Unemployment Bridge Program. The funding was made available through the U.S. Department of Treasury’s Hardest Hit Fund®. The program is available through the Kentucky Homeownership Protection Center, which is administered by Kentucky Housing Corporation (KHC), the state housing finance agency.
“There is still almost $92 million available for homeowners who qualify,” said KHC’s Senior Director of Homeownership Brenda Walker. “This federal resource, through innovative program development and strong partnerships at all levels, has been helping the state recover from the stress of foreclosures.”
Homeowners must meet certain requirements, including having no more than two liens on the property, owing no more than $275,000 on the property, and the mortgage must be with a servicer that has agreed to participate in the program.
"The Unemployment Bridge Program was my last hope for saving my house,” said Juanyatta Parks, from Elizabethtown, Kentucky. “I tried many other programs to prevent foreclosure and none of them were effective. The stress and anxiety from being unemployed was more than I could handle, but when I started to receive letters stating that my house would be taken from me...I felt helpless. I didn't know if the Unemployment Bridge Program could help, but I submitted the required documents and prayed for the best outcome. When I received the notification that I had been approved and a closing date for the loan was set, I was overjoyed! My children and I would not be homeless.”
Unemployed Kentucky homeowners can learn more about the Unemployment Bridge Program by visiting the Web site at www.ProtectMyKYHome.org or calling (866) 830-7868. The Web site lists participating lenders, explains how the program works and offers an online application to get started. If the homeowner does not qualify, there may be other options to help in the Kentucky Homeownership Protection Center.
The Kentucky Homeownership Protection Center was established by the 2008 Kentucky General Assembly to address the foreclosure crisis here in Kentucky. The Kentucky Homeownership Protection Center is a joint effort of the Governor’s Office, the Department of Financial Institutions, Kentucky Housing Corporation and many other agencies and groups across the state. The Kentucky Homeownership Protection Center is administered by Kentucky Housing Corporation.