Complaints

• Initial Complaint

  02/10/2025

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  i have a 30-yr fixed loan ive paid $1000/mo for almost 20 years -- khc illegally increased my mortgage by OVER $35,000 -saying my new monthly mortgage is $1300/mo they did not even bother to explain why they added $270/ mo to my mortgage

  Business response

  02/14/2025

  *** ***** contacted our Mortgage Servicing Compliance Officer via email on Saturday, February 8, 2025, regarding the same issue indicated in the complaint.  We contacted *** ***** on Monday, February 10, 2025.
  
  The issue was *** ***** received his Annual Escrow Analysis indicating his payment was increasing due to a shortage and deficiency in his escrow account caused by a significant increase to his property taxes in 2024.  As this was the first time he experienced a significant increase to his escrow payment, he was not familiar with how to read the Escrow Analysis and did not realize the increased payment was solely due to escrow items and not permanent for the remainder of the loan term.
  
  KHC’s Mortgage Servicing Compliance Officer explained the Escrow Analysis in detail to *** *****, and he now understands how it works.  *** ***** indicated he would have a difficult time paying the increased payment amount.  Options to lessen the financial impact caused by the escrow shortage and deficiency were discussed and a resolution was reached to spread the shortage and deficiency over 36 months.  *** ***** was satisfied with this resolution and the call ended mutually.

• Initial Complaint

  01/27/2025

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I reduced the amount of insurance on my home in July 2024. The reduction should've resulted in a drop in mortgage payment. I sent the new policy to Kentucky Housing Corporation escrow department in July after the changes were made. I noticed my mortgage payment increased starting in February 2025. I reached out to the escrow department because they didn't make any changes to my escrow despite being sent the new policy. I then faxed them a copy of the Declaration Page today January 27, 2025 and also called to have the escrow reanalyzed to fix the issue. I was informed they wouldn't analyze my escrow unless I submitted the refund check issued to me by my mortgage company after adjusting the coverage amount on my home. I will be in surplus with the new payment regardless of sending them the refund check. I simply want the escrow fixed, and legally they have to analyze the account once a year.

  Business response

  02/14/2025

  *** ***** contacted KHC on 1/27/2025 with questions regarding an increase to her payment caused by her escrow.  *** ***** advised that she had sent information to KHC regarding an updated Homeowners Insurance premium in July 2024 via email to the Escrow Department email address indicated on our website.  KHC received an email from *** ***** but the updated policy was not attached or verification that there was a reduction in the premium costs. KHC has no other record of *** ***** trying to contact KHC.
  
  KHC’s standard process is to ask borrowers to provide a copy of their insurance declaration page and advise them to return any overage refunds from the insurance company to be placed back in their escrow account to prevent any escrow shortages. The representative *** ***** spoke with on 1/27/2025 provided the standard information provided to customers in these types of situations.  The representative was not aware that the borrower had a lower insurance premium for the last 6 months and other appropriate steps needed to be taken.
  
  KHC has updated the borrower’s homeowner’s insurance amount, reanalyzed the account , identified an escrow surplus, and mailed a refund check to the borrower this week. The monthly payment was updated to reflect the new payment amount effective 3/1/2025. KHC attempted to reach *** ***** by phone on 2/11/2025 to discuss the resolution, however were unsuccessful. An email was sent on 2/11/2025 explaining the steps taken on her account with a copy of the updated Escrow Analysis.  She was also advised to email KHC’s Mortgage Servicing Compliance Officer if she had any questions or concerns.

• Initial Complaint

  01/13/2025

  Complaint Type:

  Product Issues

  Status:

  Unanswered

  More info

  In 2007 i obtained a mortgage for a home . I was offered a special grant to help low income get housing. The grant for $5,000.00 to pay for closing cost, I was very thankful. When COVID rocked the country, i like many others got laid off work. KHC enrolled me into a forbearance program. This allowed me to get through COVID without worry of losing my home. when my regular payments resumed things were still hard. i came close to being in default, but managed to make payment to stop that from happening. this is when i decided to sell my home of 17 years. i paid about $110,000.00. I sold the house for $275,000.00. Ii put about $30k into the house to get it sell ready. At closing i was shocked to learn my payoff for the property i sold was more then i paid for the house. I was told the payoff was $80k or so about 2 months prevouisly. I close under duress due to money and debt issues. when i called KHC to inquire. i was told that i was not in the forbearance program but some other program. so for the months i thought i was in the first program, but one that charged me late fees and interest for like 30 months. i feel as if the old bait and switch was used on me. So i received 29k+ less then i should have. FRAUD, I HAVE THE RECEIPTS

• Initial Complaint

  09/26/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I got behind when my husband past in April of 2022. When I received my husband insurance June of 2022 I paid in full and for what reason should I have been in collection after I paid April, May, June then I paid another up again until December. I've asked **** to assist in get this off my credit with At this point I'm been harassed by ****.

  Business response

  10/07/2024

  Re: Kentucky Housing Corporation Response – **** ******** Better Business Bureau Complaint # ********

  *** ******** is a borrower whose mortgage loan is serviced by Kentucky Housing Corporation. In 2022, the account went into default when the July mortgage loan payment was returned for insufficient funds. The loan was reinstated in August 2022.

  In April 2024, *** ******** contacted KHC and inquired about obtaining a lower payment.  She was transferred to our Loss Mitigation Department and was sent a Loss Mitigation Application. 

  The application was received and deemed complete on 4/22/2024.  The application was reviewed, a loss mitigation option was approved, and the option was sent to *** ******** on 5/9/2024. 

  *** ******** was offered a Loan Modification which included a Partial Claim after the completion of a 3-month Trial Period Plan at a reduced payment amount.  *** ******** accepted this offer of a loss mitigation option by returning the signed Trial Payment Agreement on 5/20/2024.

  *** ******** completed her trial payments on 9/3/2024. 

  On 9/4/2024, *** ******** called KHC to discuss her credit report.

  On 9/19/2024, ****** ******** reached out to *** ******** explaining the loss mitigation option in detail, however *** ******** indicated she was confused.  After a lengthy phone call, *** ******** stated that she understood the option but refused it indicating she did not want the partial claim.  *** ******** was advised that she could pay the difference between the Trial Period Plan payment and the original mortgage loan amount to reinstate the loan without loss mitigation intervention. On 9/23/2024, *** ******** contacted ****** ******** again, indicating *** ******** did not understand why she had to pay the additional amount necessary to reinstate the mortgage.  The option and payments made during the Trial Period Plan were explained to her again. *** ******** indicated she understood and would call on 9/26/2024 to make the payment. On 9/24/2024, *** ******** again called in indicating she did not understand.  ****** ******** explained the situation to *** ******** again.  On 9/25/24, *** ******** left a voicemail for ****** ******** indicating a cashier check was sent and would arrive on 9/26/2024.  The payment to reinstate the loan was received on 9/26/2024 and posted on 9/27/2024 bringing the account current and due for 10/1/2024.  The loss mitigation option was closed out on 9/27/2024 because *** ******** had refused it. 

• Initial Complaint

  09/16/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I paid my mortgage on the last work day of the month. I have the email confirmation with a confirmation number ******************************** that email also states PAID ON TIME. The payment processed through my bank account! And Kentucky Housing has reported me to the credit bureau that I’m 30 days past due which I haven’t had a late payment in years! My credit went down 79 points

  Business response

  10/09/2024

  Kentucky Housing Corporation (KHC) is mailing the attached letter to the complainant today, October 9, 2024. The complainant submit their August 2024 payment online at 5:46 pm Central Time (6:46 EST) on 8/30/2024. This was after the KHC payment cutoff time of 4:30 pm EST for the month end. The confirmation provided in the complaint shows that it was to be processed on 8/31/24, this was a non business day, as it was a weekend day, Saturday. Weekends and holidays are not considered business days, therefore the payment did not post to the account until the next business day on 9/3/2024 due to the Labor Day holiday. KHC has submit a correction to the credit bureaus as a courtesy to the complainant. 

• Initial Complaint

  07/24/2024

  Complaint Type:

  Billing Issues

  Status:

  Unanswered

  More info

  I have been with this organization for over 2 years and when I have scheduled payments for my mortgage loans through their online portal if I attempt to schedule them again it only presents me with the option to view those scheduled payments as opposed to still allowing my the option to schedule a payment. I thought I had scheduled the payments, but when I checked my bank account on the day they should've been scheduled (16th), I noticed that I had not been charged, so I checked my email for receipt of the payments I thought I had scheduled and did not see any. I then checked the online portal for the aforementioned option to view scheduled payments, but it instead presented me with the option to schedule the payments. I then of course did so, because by all accounts it looked as though I had mistakenly not done so. I noticed on the 22nd that I had odd charges on my bank statement and when I looked further I saw that I had been charged $65.70 twice for my DAP loan and I had two denied charges for $1538.18. I thought that maybe the system had messed up and attempted to charge me twice. I also was now being charged a late fee with the total payment requested being $1619.29. I called Kentucky Housing Corporation today (7/24), and when they looked into it they said that I had scheduled two payments. When I explained how that's odd how it allowed me to do so when it had not done so in the prior period of time period of 2 years and 3 months they essentially said "oh well", and made no attempt to rectify the software failure that occurred allowing me to schedule the 2nd set of payments. I asked to be escalated to a manger who they told me would just say the same thing. They did so and when I asked to be escalated again she then told me that they would say the same thing and that it didn't matter and it could just sit on my account and hung up on me.

• Initial Complaint

  06/24/2024

  Complaint Type:

  Product Issues

  Status:

  Unanswered

  More info

  Was placed in temporary housing in park city ky by Glasgow housing authority while waiting for apartment with them in the city of Glasgow. I was only in the Park city location for 4 month's then they had my apartment in Glasgow ready. It has been 3 months now and I still have not gotten my deposit back. Have made several attempts to get it by contacting them. They only tell me it's being processed. 3 month's is plenty of time to process I was only there for 4 months. I paid a second seperate deposit for the Glasgow location. The apartment was left clean and no damage. I am a disabled veteran and a senior, I live on a fixed income and could use my money back.

• Initial Complaint

  06/13/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  A check we had mistakenly written for the wrong amount could not be cashed and was supposed to be mailed back to us at our home address, according to KHC customer service. The check was not mailed back to us and the amount on the check was changed by someone without our permission/authorization and cashed anyway. We have a carbon copy of the check we wrote that was supposed to be voided and sent back to us, as well as a copy from our financial institution showing proof that someone scratched out the numbers and wrote in a different amount.

  Business response

  06/16/2022

  The Assistant Director, Collections and Loss Mitigation in the Loan Servicing department was able to speak with the customer on Wednesday, June 15, 2022. He explained what happened was when the initial check was received in May 2022 with the written and numerical amounts not matching (the written amount was lower than the numerical amount) the check was placed on a “suspend report” which allowed time for a representative to reach out to the customer and explain what happened. A representative did reach out to the customer and was able to agree to do a check by phone for the correct amount which helped the customer avoid a May 2022 late fee for the May 1, 2022 payment. The representative advised the payment with the mismatching amounts would be sent back to the customer. The representative did request the payment be sent back to the customer however the address on the check was different than property address and the check was sent to the address listed on the check. It was returned back “undeliverable as addressed” in the mail to Kentucky Housing Corporation on June 9, 2022. The loan was current at that time and no late fee was close to being assessed and so a member of our investor accounting department did write in the correct numerical amount on the check to match the written amount (which again was lower and is the amount that the bank will go by) and posted and deposited that check that same day. The Assistant Director indicated a check for that amount would be refunded back to the customer the same day, Wednesday, June 15, 2022 and would be sent to the property address. The customer understood what had taken place and why and was satisfied with the outcome. The customer indicated they moved funds from their savings account to their checking account so they did not incur any additional fees and would be satisfied receiving the refund for the amount that was posted and deposited on June 9, 2022.

  Customer response

  06/16/2022

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. I hope tthey are more careful in the future because we are fortunate enough to have savings to cover a check that large. Most families in America today, do not have the means to do so and it could have been detrimental to their families well being.!
  
  Sincerely,
  
  ***** * ****** *******

• Initial Complaint

  05/31/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I received a section 8 housing choice voucher from khc about 2 months ago and I cannot find any apartments or any landlords that accept these vouchers and khc does not help in navigating finding you an apartment or have housing counselors or even an updated list of landlords that do accept their vouchers they just send these vouchers out and say go for it and then after 90 days they expire and you're just s o l i need some help in getting khc reformed or straightened out because their system is broken.

  Business response

  06/13/2022

  A family that is issued a Section 8 housing choice voucher (HCV) is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the HCV program.  Kentucky Housing Corporation (KHC) assists in the search by providing the tenant with listings of landlords who have contacted KHC and asked to be included on said list as landlords who will accept tenants under the HCV program.  These lists can vary greatly by county.  There is a unit shortage, nationally, and landlords are not required to accept HCV recipients as tenants. HUD and all public housing authorities are hearing that unit availability is scarce. KHC offers families who have been issued a Section opportunities to request extensions on their voucher and to allow for additional search time.
  
  In this case, KHC has spoken with the Complainant several times about unit searches and has worked with him in transferring his assistance to another area where there may be more units available. Ultimately, it is the Complainant's choice to do so.  KHC has extended Complainant's voucher to Sept 28th to allow for additional time in Complainant's search for housing.

  Customer response

  06/13/2022

  
  Complaint: ********
  
  I am rejecting this response because:
  
  Sincerely,
  
  ******* ******

• Initial Complaint

  05/17/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Okay so I rent my home out currently because it's a two family home me and my husband aren't together anymore ect. My tenant goes and files for eviction help and because he list my address the same as the rental property that I use to live at they literally marked it as a fraudulent application. This is totally wrong like last year we already went through every bit of this and they figured out everything they needed to know I can't believe they have done this. That's horrible for that young boy and I feel so bad cause I assured him when he got sick he would not have anything to worry about . I want something done about this they didn't ask for documents anything you can't deem something as fraud if you don't have anything to go on besides a typo I can't believe this crap. They make it so hard for anyone to get any kind of assistance people that are being completely honest get done so wrong I just can't believe this I truly can't

  Business response

  06/16/2022

  The tenant (Tenant A) referenced in the complaint was listed on two different Health at Home Eviction Relief Fund (HHERF) claims for two different apartments.

   

  Complainant has received significant HHERF payments on 2 units:

  • $11,700 for Tenant B—Tenant A was listed in the application and on the Settlement Agreement as living in this unit.  This covered 15 months.
  • $12,900 for Tenant C—same unit that Tenant A is now in

   

  In addition, 3 months of rent has been approved for payment to Tenant A - for the very same unit Tenant C previously occupied and to cover some of the same months for which HHERF had already paid future rent for Tenant C.  Complainant was hoping to get 6 months of back rent + 3 months future. However, the federal funds used for the HHERF program only allow for a max of 18 months of assistance. Since Tenant A was listed on Tenant B’s application, our records indicate Tenant A was already assisted for 15 months and can only receive help for 3 months.

   

  During a phone call on or about May 23, 2022, Complainant agreed to accept 3 months of rent arrears, covering Jan-March 2022 rent for Tenant A. 

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩