COVID Related Foreclosures and Evictions on the Rise in Kentucky

The coronavirus, or the COVID-19 pandemic, is upending all types of life across the world. However, while some countries have been able to control the virus, some countries, such as the United States, have had a harder time beating it back. According to many reports, COVID-19 cases are rising in the midwest, as well as in the south, and Kentucky's proximity to both of those areas has made it a particularly tough time to anyone living in the state.

Sadly, Kentuckians are having to face the harsh reality that COVID-related foreclosures and evictions are also on the rise in their home state. With this news comes a variety of questions, with the most pressing being "What can we do now?" Having the right information, even during such an uncertain time, is one of the best ways to face any obstacle head-on. Here's what you need to know about the foreclosures in Kentucky.

What is a foreclosure?

As a homeowner, foreclosure is one of the last things you want to have to deal with. Put simply, if you are a borrower, having taken out a mortgage loan, and then fall behind on your mortgage payments, then foreclosure is the legal process in which the bank or other lender tries to get back the rest of the money that you borrowed. If you're in foreclosure, you'll likely have already had attempts from your lender to try and catch you up on your mortgage payments. The foreclosure process isn't generally triggered until you've missed a certain number of monthly payments, and even then, banks are generally against starting the process at all, if they think they can get what you owe in a different way. That being said, during such a risky year economically, foreclosures are becoming more common as borrowers fail to find new jobs and sources of income, and therefore struggle to make ends meet.

Why are foreclosures happening at a higher rate in Kentucky?

Kentucky, like many other states, is facing a rise in foreclosures and evictions directly because of the coronavirus pandemic. The pandemic has caused many employees to get furloughed, or even have their jobs eliminated completely, as companies struggle to stay afloat during such uncertain times. As such, whether you live in Louisville, Lexington, or Fort Thomas, you or someone you know has probably been economically affected by COVID-19.

Those economic effects obviously have other repercussions too, but if you have a high-cost home loan and are struggling to make ends meet, it's unlikely that you can afford that loan anymore. Especially when you consider that for married Kentuckians with families, a mortgage loan that was calculated using a dual-earner model, is no longer economically viable if someone has lost their job and can't find new work. This is a sad reminder of the importance of taking out a home loan that you can truly afford, especially if you owe other debts on your car, personal credit cards, or student loans.

Who can help you navigate the foreclosure process?

As the foreclosure process involves both Kentucky law/state law, and federal law, it makes sense that if you're facing Kentucky foreclosure you should work with a local foreclosure attorney who can offer you some legal advice. In some cases, once you receive a notice of default it can make sense to reach out to an attorney with experience in the Kentucky foreclosure process, although some Kentuckians may wait to act until they've tried different ways to resolve it first.

Generally speaking, if you're facing a foreclosure, it's in your best interest to speak with a local expert in foreclosure laws sooner rather than later. Many attorneys can offer you a free consultation to learn more about your situation and take a look at the mortgage contract, too. Whether you're planning on proceeding with the foreclosure or decide you want to file for bankruptcy in order to try and keep the home, having the right lawyer is crucial if you're going to make the best of the situation.