Kentucky Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Varies
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes, but with restrictions |
In Kentucky,
lenders may foreclose on a mortgage in default by using the judicial
foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees the amount of the
borrowers debt and gives him or her a short time to pay. If the borrower
fails to pay within that time, the clerk of the court then advertises
the property for sale.
At some point prior to the scheduled date of foreclosure, an appraisal
of the property must be made. If the foreclosure sale price is less
than two-thirds of the appraised value, the borrower has a period of
one year (12 months) from the date of the sale to redeem the property
by paying the amount for which the property was sold, plus interest.
It is possible to obtain a deficiency judgment against the borrower
for the difference between the amount the borrower owed on the original
loan and the foreclosure sale price, but only if the borrower was personally
served with the lawsuit, or failed to answer.
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