In understanding the Kentucky foreclosure law, it is important to do your research. This article is written to get you started in the right direction. So, if you’re facing foreclosure, you are invited to continue reading to gain a better understanding of the Kentucky foreclosure law.

Understanding the Kentucky Foreclosure Law

In Kentucky, lenders and judicial liens foreclose on homes by using the judicial foreclosure process. Interestingly, other states use a deed of trust to foreclose on a home.

It’s also good to know that most foreclosures take about six months or less if done by default. However, if litigated, foreclosures often take a year or more. The following are some points and terms to remember when doing your research.

  • Judicial Foreclosure State: Requires a Court ordered sale
  • Primary Security Instrument: Mortgage
  • Timeline: Varies depending on the amount of litigation
  • Right of Redemption: Yes
  • Deficiency Judgments Allowed: Yes

Kentucky Foreclosure Law • the Requirements of a Judicial Foreclosure

Judicial foreclosures require a court decree and an advertised sale of the home. You do have the right to redeem your home. However, the borrower only gets a short time to pay the entire loan. If the borrower fails to pay within that time, the Commissioner then advertises and holds a sale of the property.

At some point prior to the scheduled date of foreclosure, there is an appraisal of the property. If the foreclosure sale price is less than two-thirds of the appraisal value, the borrower has a period of one year from the date of the sale to redeem the property. The borrower does this by paying the selling price of the property, plus interest. However, the bank almost always bids over this amount at the foreclosure sale. Unfortunately, this action by the bank prevents redemption.

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 is personally served with the lawsuit, loses the lawsuit, or fails to answer.

Please beware of Rescue scams claiming to help you stop a Kentucky foreclosure. Additionally, here is a timeline of the foreclosure process.

Continue to do your research into Kentucky foreclosure law and come back often for new information! Below, you will also find links to other articles about foreclosures in Louisville, Kentucky.

Resources for Foreclosures

Foreclosure Forms Links

Bankruptcy Manual

Other Related Information

How a Kentucky Foreclosure Works

Mortgage Foreclosures in Louisville, Kentucky

Kentucky Foreclosure Law Process

If you’re facing foreclosure and want to save your home then, seek an attorney immediately to file bankruptcy. Contact my office right away to start the conversation. Nick C. Thompson, Attorney: 502-625-0905