Kentucky Foreclosure Laws

When looking for information about foreclosures, keep in mind that every state has its own laws that must be followed. What is true in one state may be different in another. If you do not plan to hire a lawyer, or simply want to find out first-hand what the law is in your state, the best place to look is in your state’s statutes.

Below is a guide to finding Kentucky’s foreclosure statutes online, followed by a summary of Kentucky’s foreclosure law.

Finding Kentucky’s Foreclosure Laws

The citation to Kentucky’s foreclosure law is Kentucky Revised Statutes Sections 360.100 and 426.005 through 426.720.

Take the following steps to find these statutes online:

1. Start at the website of the Kentucky Legislature: www.lrc.ky.gov.
2. Scroll down and select the “Kentucky Law” link on the left-hand side of your screen.
3. Click to select “KY Revised Statutes (KRS).”
4. Select “Title & Chapter.”
5. Scroll down and select either “Chapter 360 Interest and Usury” or “Chapter 426 Enforcement of Judgments.”

You should see a list of the sections in each of the chapters, with headings summarizing what is covered in each section. Scroll down to find the section you are interested in and click on the heading to read the text of the section.

Summary of Kentucky’s Foreclosure Law

Read on for a summary of Kentucky’s law governing foreclosures.

Judicial Foreclosure

In Kentucky, judicial foreclosures are the norm. In a judicial foreclosure, the lender files a complaint against the borrower in court. If the court determines that the borrower has defaulted on the mortgage, the court will give a judgment for foreclosure and sale of the property. The judgment is then enforced when the court issues a writ of execution to the sheriff, who then may advertise and conduct the sale. The foreclosure sale will be held at the courthouse of the county in which the land is located. Ky. Rev. Stat. Ann. §§ 426.005, 426.200, 426.430. Before the property is sold, the property must be appraised by two disinterested parties. Ky. Rev. Stat. Ann. § 426.520.

Notice Requirements

The sheriff conducting the foreclosure sale of the property must give notice of the sale. The sheriff must post this notice on the courthouse door as well as in three other places in the vicinity of the property for 15 days before the foreclosure sale. Ky. Rev. Stat. Ann. § 426.200.

In addition to posting the notice, the sheriff must publish notice of the sale in a newspaper published in the area at least once, with one of the publications at least seven days and not more than 21 days before the date of the sale. Ky. Rev. Stat. Ann. §§ 424.120, 424.130, 426.200, 426.560.

Right to Cure

Borrowers in Kentucky do not have a right to cure their default. The court may order the sale of the property without allowing any time for payment by the borrower. Ky. Rev. Stat. Ann. § 426.005.

Right of Redemption

Kentucky law provides a limited right of redemption. If the property sold does not bring two-thirds of its appraised value, the borrower may redeem by paying the original purchase price plus ten percent annual interest within one year of the foreclosure sale. Ky. Rev. Stat. Ann. §§ 426.220, 426.530.

Deficiency Judgments

A Kentucky court may render a judgment against a borrower personally for the amount of the debt owed. This would make the borrower liable for any deficiency still owed to the lender after the sale of the property. Ky. Rev. Stat. Ann. § 426.005.

High-Cost Home Loans

In foreclosure actions involving high-cost home loans, as defined by Kentucky statute, a lender may not foreclose until they have given to the borrower 30 days’ notice of default. The notice must also include information about the borrower’s right to cure, including the amount of payment necessary to cure the default and the date by which such payment must be made. Ky. Rev. Stat. Ann. § 360.100.