STATE FORECLOSURE PROCEDURES - KENTUCKY
KENTUCKYConveyance is by grant deed or by bargain and sale deed. Deeds must show the name of the preparer, the amount of the total transaction, and the recording reference by which the grantor obtained title. Mortgages are the principal security instruments because deeds of trust offer no power of sale advantages. Enforcement of any security instrument requires a decree in equity, a judicial foreclosure proceeding. - Judicial Foreclosure Available: Yes - Non-Judicial Foreclosure Available: No - Primary Security Instrument: Mortgage - Timeline: Varies - Right of Redemption: Yes - Deficiency Judgments Allowed: Yes, but with restrictions In Kentucky, lenders may foreclose on a mortgage in default by using the judicial foreclosure process. Judicial Foreclosure Generally, in judicial foreclosure, a court decrees the amount of the borrower’s debt and gives him or her a short time to pay. If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale. At some point prior to the scheduled date of foreclosure, an appraisal of the property must be made. If the foreclosure sale price is less than two-thirds of the appraised value, the borrower has a period of one year (12 months) from the date of the sale to redeem the property by paying the amount for which the property was sold, plus interest. It is possible to obtain a deficiency judgment against the borrower for the difference between the amount the borrower owed on the original loan and the foreclosure sale price, but only if the borrower was personally served with the lawsuit, or failed to a
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