Kentucky Foreclosure Laws

by: Barry Johnson

-  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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About Barry Johnson

Barry Johnson is a Co-Editor and writer for iNews. He takes a "no holds barred" writing approach to all of the subjects he covers. Opinionated, and with a well established sense of right and wrong, you can always count on him to tell it like it is. He gets his core values from growing up in the South, where God and Country are the prevailing themes. You may not like what he has to say, but know that he believes in it to his very core. As an editor, he will stand by each writer in their decision to take on controversial subjects and allow them to tell the story in their own unique ways.
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