Kentucky Foreclosure Law (Summary)
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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.
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