If you did not put your name on the loan and did not sign the mortgage note, then there should be no way a lender could come after you personally. The home has already been taken back by the lender according to your post. This is as far of a recourse as they would be allowed to go.
Sagamore Home Mortgage
If your home is being sold by Fannie Mae, the HomePath Renovation Loan could be a solution. Otherwise, FHA's 203-k loan could help. Both allow for monies to be held in escrow to complete the work.... more
You should have a real estate agent. You don't deal directly with the bank.
What happens is this: The bank puts the property on the market. It lists it with a real estate agent. Although you could deal directly with the listing agent, you'd be far better off to have your own agent representing you.
In either case, you'll be going through an agent, not dealing directly with a bank.
It sounds like your lender purchased the property @ foreclosure to protect their own financial interests. In states with the right of redemption (Kentucky appears to have a redemption period albeit restrictive) often the bank will be the sole bidder @ foreclosure auctions.... more