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Kentucky

Kentucky Revised Statutes § 426.005. Judicial foreclosure state.

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Judicial Type

Judicial

Redemption

6 months from date of sale for residential property if the s

Deficiency

Lender may pursue deficiency. For most residential foreclosu

Mediation

No mandatory statewide program. Some counties have voluntary

Statute Citation

Ky. Rev. Stat. §§ 426.005-426.720

Redemption Period

6 months from date of sale for residential property if the sale price is less than 2/3 of the appraised value. Otherwise, no statutory redemption period (Ky. Rev. Stat. § 426.530).

Deficiency Judgment Rule

Lender may pursue deficiency. For most residential foreclosures, deficiency is determined as: total debt − fair market value (not auction price). Fair value hearing is required for deficiency.

Notice Requirements

Foreclosure complaint with lis pendens. Commissioner's or master commissioner's sale after judgment. Sale notice published and posted.

Mediation Program

No mandatory statewide program. Some counties have voluntary mediation.

Key Provisions

  • Judicial foreclosure — court involvement required
  • Conditional redemption: 6 months IF sale price < 2/3 of appraised value
  • Master commissioner conducts the sale (a quasi-judicial officer)
  • Fair value hearing for deficiency

Homeowner Protections

  • Judicial process with court oversight
  • Conditional redemption period when sale price is inadequate
  • Fair value limitation on deficiency
  • Master commissioner provides neutral sale oversight

Frequently Asked Questions

How does Kentucky's redemption right work?+
Kentucky's right of redemption is CONDITIONAL: you have 6 months to redeem ONLY IF the property sold at the master commissioner's sale for less than 2/3 of its appraised (fair market) value. If the sale price is 2/3 or more of the appraised value, there is no redemption right — the sale is final. This means the redemption right protects against lowball foreclosure sale prices. If the property is worth $300,000 and sells for $180,000 (60%), you get 6 months to redeem. If it sells for $210,000 (70%), no redemption.
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