- 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.
More
information on Kentucky foreclosure laws.
