Summary of Kentucky's Foreclosure Laws

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If you are facing foreclosure in Kentucky, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Kentucky
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Kentucky foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Judicial

Time to respond

Homeowner has 20 days to respond after being served with the complaint. If court issues a foreclosure judgment, foreclosing party must post notice on courthouse door or publish notice once a week for three weeks at least 15 days before the sale.

Reinstatement of loan before sale

If loan is a high-interest loan (under Ky. Rev. Stat. Ann. § 360.100), foreclosing party must serve notice of right to reinstatement at least 30 days before filing the foreclosure complaint.

Redemption after sale

Available one year after sale, if sale amount is less than two-thirds of property’s appraised value. Homeowner must pay full amount of the price paid for property at foreclosure sale, plus 10%.

Special protections for foreclosures involving high-cost mortgages

Laws protect against and provide remedies for abusive lending practices and loan conditions. Ky. Rev. Stat.  Ann. § 360.100

Special state protections for service members

Ky. Rev. Stat. Ann. § 38.510

Deficiency judgments

Allowed if homeowner is personally served with the complaint or fails to answer the complaint

Cash exempted in bankruptcy

$1,000 for one person, $2,000 for a married couple under state bankruptcy exemptions. About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions.

Notice to leave after house is sold

Upon ten days’ notice, former owner is required to move out under a writ of possession issued by the court.

Foreclosure statutes

Ky. Rev. Stat. Ann. §§ 426.525 to 426.720

by: , J.D.

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