Timeline:
Varies
Redemption:
12 months after sale
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: No
Security
Instruments: Mortgage
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The
Non-Judicial Foreclosure process is not used in Kentucky , and
no “power of sale” clause is present in the original loan documents.
The lender must follow a Judicial Foreclosure process and sue
the borrower in the circuit court in which the property is located.
The lender sues the defaulted borrower for a judgment of foreclosure.
The
borrower has twenty-one (21) days to respond to the complaint,
once it is served upon him. If the borrower does not respond
to the complaint, a default judgment is entered by the court.
If the borrower does respond to the complaint but is found in
default, a summary judgment is entered by the court. A notice
of sale is then issued, and the property will be advertised
for sale. |
The
notice of sale must include the balance due on the mortgage,
and it must be published for three (3) consecutive weeks before
the scheduled sale date. The property must be appraised before
the sale. If the sale price is less than two thirds of the appraised
value of the property, the borrower can redeem the property
for up to one year after the sale. The redemption amount is
the price the property sold for at auction, plus interest.
The
lender has the right to sue the borrower, but only if the borrower
was personally served with the complaint and did not respond
to the complaint.
Kentucky Foreclosure Law