FRANKFORT, KY – October 1, 2010 – (RealEstateRama) — Gov. Steve Beshear, along with Kentucky Housing Corporation (KHC) Chief Executive Officer Richard L. McQuady, today announced that Kentucky will receive additional funding from the U.S. Treasury Department to help unemployed and underemployed homeowners pay their mortgages as they seek work. Kentucky originally expected to receive $55.6 million, but received notification today that that state will receive an additional $93.3 million for a total of $148.9 million.
“Kentucky’s unemployment rate continues to be at very high levels and we know we have families in need,” said Gov. Beshear. “This additional funding is much needed and means we will be able to assist even more Kentuckians.”
Geared to serve low-to-moderate-income households, this loan program is funded through Troubled Asset Relief Program (TARP) funds are dedicated to the expansion of the Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets (the Hardest-Hit Fund.)
“Thousands of Kentucky families have been hit hard by the economic downturn, struggling to pay their bills and keep a roof over their heads,” said Congressman John Yarmuth, of Louisville. “Ensuring these families can stay in their homes isn’t just the right thing to do – it’s critical to our economic recovery.”
“Active job seekers often need assistance with their mortgage during the time they are in-between jobs,” said McQuady. “This program will help these individuals and families stay in their home until they have found a new employer.”
Details are still being determined, but it is anticipated that the program will be launched statewide in April 2011. Until these funds are made available, Kentuckians who are facing foreclosure or near facing foreclosure can seek free help through the Kentucky Homeownership Protection Center.
While this program currently does not have funds to assist clients with mortgage payments, homeowners can find information on public services and information on the foreclosure process, utility assistance, and home repair assistance to make smart choices and avoid losing their homes.
If homeowners are 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, they should immediately contact the Protection Center by calling toll-free in Kentucky at (866) 830-7868 or visit www.ProtectMyKYHome.org. Financial counselors, attorneys and public assistance agencies are available to help homeowners understand their options.