Judicial/ Non-Judicial Foreclosure: Only Judicial foreclosure
Right of Redemption / Deficiency Judgment: Yes / Some restrictions apply
Timeline: Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Mortgage
Judicial Foreclosure Process:
Only Judicial foreclosure process is followed in the state of Kentucky and the lender needs to file a legal case in a court for foreclosing the mortgage property. The court gives some time for the borrower to pay up the remaining dues and if the borrower fails to do so, the court clerk puts up an advertisement announcing the property for sale.
An appraisal of the property is made before the actual foreclosure sale to estimate the value of the property when it is sold. After this, the sale proceedings happen according to the procedures and the property is sold through a public auction to the highest bidder.
The borrower retains their right of redemption for twelve months if the actual sale price is less than two thirds of the appraised value. Within that period, they can pay up the amount due to them along with interest to reclaim their property.
The lender can apply for a deficiency judgment if the sale price is lesser than the amount owed to them by serving the borrower with a personal lawsuit if the borrower does not reply to their communications.