In
Kentucky, lenders and judicial liens
foreclose on homes by using the
judicial foreclosure process. Other
states use a deed of trust to foreclose
on a home. In Kentucky, most foreclosures
take about 6 months if done by default.
If litigated, foreclosures often take a
year or more.
Judicial Foreclosure
Judicial foreclosures require a court
decree and an advertised sale of the
home. You do have the right to redeem
your home but the borrower is given only
a short time to pay the entire loan off.
If the borrower fails to pay within that
time, the Commissioner then advertises
and holds a sale of the property.
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. However, the bank almost
always bids over this amount at the
foreclosure sale preventing a
redemption.
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 answer.
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