Kentucky Foreclosure Laws

Attorney General's Office

P.O. Box 2000
Frankfort, KY 40602-2000
Ph: (502) 573-7600
Fax: (502) 564-2894

Foreclosure Laws in Kentucky

Judicial Foreclosure: Yes
Non-Judicial Foreclosure: No
Security Instruments: Mortgage
Right of Redemption: Yes. 12 Months
Deficiency Judgments: Yes. With Restrictions
Time Frame: Varies
Public Notice: Complaint

Judicial foreclosure: In Kentucky requires that a suit be filed by the lender, in the circuit court for the district in which the property is located, to obtain a judgment of foreclosure. A complaint must be served on the borrower who then has 21 days to respond. In the event there is no response, a default judgment is declared by the court, or if the borrower does appear and is found to be in default, a summary judgment and notice of sale are issued and the property advertised for sale.

The notice will include the balance due on the mortgage and be published weekly for three consecutive weeks. Prior to the sale date, the property must be appraised, and if the sale price is less than two thirds of the appraised value, the borrower has one year in which to redeem the property by paying the sale price plus interest.

Deficiency judgments are allowed, but only if the borrower was personally served with the complaint and failed to respond

Laws:

• Section 341.815 Right of redemption.
  Law which regulates the foreclosing owner to redeem real property.

• Section 381.883 Lien for unpaid assessments -- Foreclosure – Suit
  Law which regulates lien’s against co-owners of the foreclosed property.

• Section 382.365 Release of lien
  Law which regulates how a release of lien is handled in the court system.

• Section 426.720 Final judgment to act as lien on realty -- Judgment creditor's notice
  Law which regulates a judgment be entered to recover money.

• Kentucky State Legislature