Do you struggle to make your mortgage payments as a Kentucky homeowner? If so, you’re not alone. A variety of mortgage relief options are available to help you avoid foreclosure. In this blog post, we’ll cover some of the most common options so you can choose what’s right for you. Keep reading to learn more.
Getting Started
Communication with your lender is the first step toward getting mortgage relief. When homeowners find themselves unable to make their regular monthly payments, lenders are often willing to assist them. A HUD-approved housing counselor can assist you if you don’t know how to approach your lender or have questions regarding the process.
Mortgage Relief Options
There are many ways to obtain mortgage relief. There are several programs available to help you lower your interest rate, shorten your mortgage term, and pay off your mortgage.
Mortgage Modification
If you are experiencing difficulties making payments, your mortgage loan terms may be modified. When you modify your mortgage, you negotiate a new repayment plan with your lender that is more suitable for your current financial situation. Your lender may even be able to lower your interest rate.
Forbearance
Forbearance agreements may be available when you are suffering a temporary financial hardship. You can regain financial stability by reducing or stopping payments for a set period of time.
Principal Reduction
When your mortgage exceeds the value of your home, you may be eligible for a principal reduction. As a result, your loan balance would be reduced to reflect the current market value of your home.
Loan Refinancing
You might be able to refinance your mortgage at a lower interest rate if you are having difficulty making payments. Reducing your loan payments will make them easier to repay.
Short Sale
A short sale occurs when a property is sold for less than its mortgage balance. Payment of the debt is made with the sale proceeds.
Deed in Lieu of Foreclosure
If you cannot sell your home or reach an agreement with your lender regarding a loan modification, you can deed your home back to the lender in lieu of foreclosure.
Mortgage Relief Programs in Kentucky
Homeowner Assistance Fund (HAF)
The Kentucky Homeowner Assistance Fund was established in the wake of the COVID-19 pandemic to help homeowners facing financial difficulties. This program offers homeowners up to $35,000 in assistance.
Eligibility Requirements
Only those suffering from financial hardship due to the Coronavirus epidemic are eligible for this program.
You must also meet the following qualifications:
- Earn less than 150% of the area’s median income
- Occupy the Kentucky property as their principal residence during hardship and after closing
How to Apply
You can apply for the program here. A mortgage statement, housing-related documents, and proof of your financial hardship may also be required.
Foreclosure and Its Impact
It is important for homeowners to understand how foreclosure works in Kentucky and what its consequences are in order to avoid it. If you fall behind on your mortgage payments, your lender may foreclose on your home. Moreover, foreclosure can negatively affect your credit score, so you should avoid it as much as possible.
Avoid Foreclosure in Kentucky with Favor Home Solutions’ Save My Credit Program
If you’re looking for a quick and convenient way to avoid foreclosure, we can help! At Favor Home Solutions, we’re dedicated to helping you regain your peace of mind and protecting your credit! Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or get a foreclosure on your credit report.
You might even be able to pocket some money at the end! No fees, no gimmicks, and no obligations. Contact us today to get started!
