Redemption and Deficiency Judgments in Kentucky
Whether you can buy back your home after a foreclosure sale in Kentucky, and whether the lender can sue for what's still owed.
Short answer: If a home sold under a court judgment or order does not bring two-thirds of its appraised value, the owner may redeem it within six months from the day of sale by paying the purchase price plus 10% per year interest and the buyer's reasonable post-sale costs for maintenance or repair… KRS 426.530
| Redemption after the sale | If a home sold under a court judgment or order does not bring two-thirds of its appraised value, the owner may redeem it within six months from the day of sale by paying the purchase price plus 10% per year interest and the buyer's reasonable post-sale costs for maintenance or repair (such as utilities, insurance, association fees, taxes and nuisance-code work). The money is paid to the clerk of the court, and the master commissioner then deeds the property back. While the redemption right exists, the buyer still gets immediate possession and a deed subject to the owner's right to redeem. If the sale brings at least two-thirds of the appraised value, this statute gives no redemption right. Source: KRS 426.530 |
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| Deficiency judgments | Yes. In an action to enforce a mortgage or lien, the court may order the property sold and also enter a personal judgment against the borrower for the debt. If a cash sale brings more than is needed to pay the judgment, costs and commission, the extra is paid to the owner whose property was sold. Source: KRS 426.005; KRS 426.500 |
More Kentucky foreclosure & homeowner law
- How Foreclosure Works in Kentucky
- HOA Liens and Foreclosure in Kentucky
- Getting Your Home Back After a Tax Sale in Kentucky
- All Kentucky foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in Kentucky?
If a home sold under a court judgment or order does not bring two-thirds of its appraised value, the owner may redeem it within six months from the day of sale by paying the purchase price plus 10% per year interest and the buyer's reasonable post-sale costs for maintenance or repair (such as utilities, insurance, association fees, taxes and nuisance-code work). The money is paid to the clerk of the court, and the master commissioner then deeds the property back. While the redemption right exists, the buyer still gets immediate possession and a deed subject to the owner's right to redeem. If the sale brings at least two-thirds of the appraised value, this statute gives no redemption right.
Can the lender come after you for the rest of the loan after foreclosure in Kentucky?
Yes. In an action to enforce a mortgage or lien, the court may order the property sold and also enter a personal judgment against the borrower for the debt. If a cash sale brings more than is needed to pay the judgment, costs and commission, the extra is paid to the owner whose property was sold.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.