Kentucky Foreclosure Process and Laws


Quick Facts About the Foreclosure Process in Kentucky

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: No
Primary Security Instruments: Mortgage
Timeline: Varies
Right of Redemption: Yes
Deficiency Judgments Allowed: Yes, but with restrictions

In the State of Kentucky, the judicial process is the only foreclosure process allowed to lenders who want to foreclose on a mortgage in default.

Judicial Foreclosure
In this foreclosure type, the court will set a period of time for the borrower to pay the balance that he owes. If he is unable to come up with the payment in time, the property can then be advertised for sale.

An appraisal of the property must be made before the foreclosure sale. If the price of the foreclosure sale is less than 2/3 of the appraisal value, the borrower has 12 months to match this price plus interest to be able to redeem the property.

The only way a deficiency judgement for the difference between the foreclosure sale price and the original mortgage price against the borrower is allowed is when the borrower is personally served with the lawsuit, or if he fails to answer.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.


Dept. of Housing and Urban Development
Gene Snyder Courthouse
601 W. Broadway, Room 110
Louisville, KY 40202

Phone: (502) 582-5251
Fax: (502) 582-6074
TTY: (800) 648-6056

Jurisdiction: State of Kentucky

Krista Mills
Field Office Director
Office Hours: 8:00 a.m. to 4:45 p.m.,
Monday through Friday