Kentucky foreclosure laws only allow for the judicial foreclosure process. The lender is required to bring a case against the homeowner in court. The time line for this process can vary but is largely determined by the complexity of the case. On average it will take 3 to 6 months.
In a Kentucky judicial foreclosure the homeowners total debt is decreed by the court as well as a time frame for bringing the mortgage current. If the homeowner fails to meet the deadline established by the court the clerk of the court will declare the foreclosure and advise the lender to place the home for sale.
It is required for the lender to appraise the property to determine the homes current value. If the sale price at foreclosure is not at least 2/3 of the appraised sale the borrower is give a Right of Redemption of 12 months. This means that after the home is sold, the borrower has 12 months to regain possession of the home by paying the foreclosure sale price plus any interest.
In Kentucky, the lender is also able to file a deficiency suit if the sale is not enough to cover the original balance of the loan. However, this is only allowed if the borrower failed to answer the lawsuit or was personally served.
