Kentucky Foreclosure Law

Lenders in Kentucky can only foreclose in the judicial process. This means that all cases have to be brought to court before the home can be sold. The primary security instrument is a mortgage, and the timeline largely depends on how complex the case is.

In a Kentucky judicial foreclosure, the borrower’s total debt is decreed by the court, as well as the time frame for bringing the account current. If the borrower fails to meet the deadline, the clerk of court declares the foreclosure and advises the home for sale.

Before the home is auctioned off, however, a property appraisal will be performed to determine the home’s current value. If the sale price at foreclosure is less than two-thirds of the value, the borrower is given a Right of Redemption of one year. This means that after the home is sold, the borrower has one year to regain possession of his home by paying the foreclosure sale price plus interest.

Lenders can also file a deficiency suit if the sale is not enough to cover the original balance. However, this is only allowed if the borrower failed to answer the lawsuit or was personally served.

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