Quick Facts
– 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 a judicial foreclosure, a court decrees the amount of the borrower’s debt and gives them a short time to pay. If the borrower fails to pay within that time, the court clerk then advertises the property for sale.
At some point before the scheduled foreclosure date, 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 borrower’s amount 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.
