Kentucky Foreclosure Timeline and Laws

Kentucky Foreclosure Process and Procedure

If you default on your mortgage, your lender can institute foreclosure proceedings against you and auction your property at a foreclosure sale.

Kentucky foreclosures are conducted by judicial foreclosure proceedings. Kentucky does not allow non-judicial foreclosure proceedings.   

Notice Requirements for Foreclosure in Kentucky

The lender initiates foreclosure proceedings by filing a lis pendens and complaint with the court. The lender must advertise a notice of foreclosure sale for three consecutive weeks prior to the sale date in a newspaper of general circulation in the county where the property is located.

Kentucky Deficiency and Anti-Deficiency Laws

The lender may obtain a deficiency judgment if the property is sold at foreclosure auction for less than the loan amount.

Kentucky Redemption Rights

Kentucky has a restricted statutory right of redemption allowing the borrower to redeem the property for all unpaid fees and costs and 10% percent interest. There is a time limit of one year and it is only available if the foreclosure sales price is less than 2/3 of the appraised value.

Kentucky Assistance, Special Programs, Government Help, and Law Updates

Foreclosure Programs:

• Kentucky Foreclosure Avoidance Counseling -HUD
• Jefferson County Court Foreclosure Conciliation Program
• The Home Affordable Mortgage Modification Program
• The Home Affordable Refinance Program
• The Home Affordable Foreclosure Alternatives Program
• FHA Secure
• Hope for Homeowners

Foreclosure Lawyer

Kentucky foreclosure laws are complex. It is recommended that you consult with a foreclosure lawyer who can advise you about options to avoid foreclosure including refinancing, reinstatement, deed in lieu, mortgage modification, short sale or bankruptcy.