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 (and three other places) and publish notice in a newspaper.

Reinstatement of loan before sale

Generally, no right to reinstate (except as required by the mortgage). If loan is a high-cost home loan (under Ky. Rev. Stat. Ann. § 360.100), foreclosing party must provide a notice of default giving the borrower at least 30 days to reinstate before filing the foreclosure complaint.

Redemption after sale

Available six months 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

Protections under the federal Servicemembers Civil Relief Act extended to state national guard ordered to state active duty by governor in certain circumstances.Ky. Rev. Stat. Ann. § 38.510

Deficiency judgments

Allowed (but not against a defendant who is constructively summoned, and who has not appeared in the action).

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

Updated by: , Contributing Editor

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