Kentucky Homeownership Protection Center

2012 Report on Foreclosures

Administered byKentucky Housing Corporation

Overview

• Kentucky Housing Corporation’s (KHC) housing counseling program

• Kentucky Homeownership Protection Center (Protection Center)

• Unemployment Bridge Program

• National Mortgage Settlement Fund

Program Overview• KHC partners work with 20 housing counseling

agencies throughout the state to provide homeownership education and counseling services to Kentuckians.• Services vary from pre-purchase to foreclosure recovery.

• All distressed homeowners begin process with the Homeownership Protection Center and are referred to a qualifying counseling agency.

Homeownership Protection Center• Legislatively created in 2008 by House Bill 552.

• Provides a state-wide, centralized resource for any Kentucky homeowner in default or in danger of becoming default on their mortgage.

• Protection Center began August 11, 2008.

Homeownership Protection Center• Distressed homeowners are referred to certified

foreclosure intervention/loss mitigation counselors within KHC’s counseling network.

• Counselors work with homeowners and their lenders to submit loss mitigation packages to avoid foreclosure.

• No charge for services to Kentucky homeowners.

Statistics (08/11/2008 through 11/08/2012

Total contacts in Protection Center System

23,859

30-90+ days late 14,175

Current but anticipating delinquency 5,269

Summons has been served 3,665

Not a foreclosure issue 750

Statistics (as of November 8, 2012)

Current Activity Status

Currently in counseling 2,126

Currently working with Legal Aid 88

Currently in UBP 1,754

Completed counseling and/or UBP 5,242

Demographics(At point of intake)

Average income $30,923

Average age 48

Average household size 3

Single parents 4,239

First-time borrowers 1,740

Received homeownership education 321

Average original mortgage amount $92,188

Unemployment Bridge Program

Federal Hardest Hit FundsBegan April 1, 2011

Unemployment Bridge Program (UBP)• For Kentucky homeowners who have suffered

job or employment income losses in the last 3 years through not fault of their own.

• Pays mortgage payments for 12 months or for a maximum of $25,000, whichever comes first.– First payment may be up to $12,500 toward reinstatement.

Current Snapshot

(Through October 31, 2012)Total program applicants 4,821

Total loans closed 2,600

Loans in process 4

Approved/pending closing 176

Program Status

• Program funds expended: $29,037,873

• Program funds committed: $65,000,000Maximum available per borrower: $25,000

• No longer in UBP: 495 Homeownership retained: 485Home sold/payoff: 6Foreclosure: 4

National Mortgage Settlement (NMS) Program

National Mortgage Settlement (NMS)

• Nationally as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government.

• Kentucky received $58.75 million.

• KHC received $7.5 million.

Funds distributed by KHC shall be used to avoid preventable foreclosures and to improve the effects of the foreclosure crisis by doing one or more of the following:

• Preventing foreclosures and keeping families in their homes.

• Stabilizing neighborhoods where foreclosures have occurred.

• Helping the affected families recover.

• Demolishing blighted and abandoned structures.

• Providing more affordable, stable and reliable housing choices throughout the Commonwealth.

NMS $7.5 Million to KHC• $3 million to the NeighborWorks Alliance to be

used on a variety of programs.

• $3 million to establish a down payment and closing cost assistance pool.– For buyers who want to purchase vacant or foreclosed

properties, or new, or existing properties that have been on the market for six or more months.

• $1.5 million awarded to the Homeownership Protection Center

NMS $1.5 million to HPC• Foreclosure Intervention/Loss Mitigation

Counseling– Counselors help borrowers submit loss mitigation applications to

their lenders to prevent foreclosure.

• Transitional Counseling– Focuses on clients who are exiting homeownership.– Relocating, restoring security, rebuilding finances.

Contact Information

www.ProtectMyKYHome.org___________________________

(866) 830-7868