What are the foreclosure reinstatement laws in Kentucky?

Reinstatement foreclosure laws in Kentucky are generally contained in KSR 360.100 which is a fairly long and dense regulation concerning predatory mortgage lending and limitations on high-cost home mortgage loans and the conditions and penalties that may be imposed by law if the mortgage loan is found to be usurious under the statute.  Regulated real property mortgage loans are those that do not exceed two hundred thousand dollars and that concern a natural person borrower’s principal residence or home.  To be considered usurious the mortgage loan at issue must exceed certain acceptable loan thresholds as follows: 

• The total points and fees payable by the borrower at closing or before closing exceed six percent of the total mortgage loan amount or are greater than three thousand dollars
• Involve material repayment changes in the loan offered such as a fixed or variable rate with a balloon payment, changes in the terms of the monthly loan payment, an increase in the rate of interest on the loan of greater than one-quarter percent, changes in the requirement of escrow for taxes and insurance

A lender may not initiate a foreclosure or judicial process to terminate a borrower’s interest in real property that has been subject to a high-cost home loan without first giving the borrower at least thirty days, written notice of the process to foreclose on the property and inform the borrower of his right to cure the loan default to stop the foreclosure of his property.  The notice must announce the amount needed to correct the loan default within a thirty day period in which the notice would be served on the defaulting borrower.  Contact an attorney immediately if you believe you have been subjected to illegal mortgage loan practices by a lender in Kentucky.