Kentucky Foreclosure Law Summary
Stop Kentucky Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: 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.
More information
on Kentucky foreclosure laws.
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