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Judicial Foreclosure Available: Yes
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Non-Judicial Foreclosure Available: No
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Primary Security Instrument: Mortgage
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Timeline: Varies
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Right of Redemption: Yes
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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.
Foreclosure Process
Kentucky Foreclosure
Laws
