In short
Kentucky is a judicial foreclosure state: the lender sues in circuit court and the property is sold under a court order (KRS 426.005; Kentucky Homeownership Protection Center). Federal rules bar the legal process before a loan is 120 days behind (CFPB). If the sale brings less than two-thirds of the appraised value, the owner may redeem within six months of the sale (KRS 426.530).
Judicial or non-judicial?
Judicial. KRS 426.005 says that in an action to enforce a mortgage, the court may order the property sold and may also give a personal judgment against the borrower for the debt. The Kentucky Homeownership Protection Center, run by Kentucky Housing Corporation with the Department of Financial Institutions, says that “most, if not all, foreclosures are processed through the courts.” A sale under a court order is public. Unless the court orders otherwise, it takes place at the courthouse door in the county where the property sits (KRS 426.700).
The steps, in order
| Step | What happens | Source |
|---|---|---|
| 1. Default | A loan is in default after the first missed payment. A notice of default usually follows around 30 days past due; threats may start at 60 to 90 days. | Protection Center |
| 2. Waiting period | Except in rare cases, the legal process cannot start until you are at least 120 days behind. | CFPB |
| 3. Complaint | The servicer files a complaint in circuit court and a pending-action notice that warns title searchers. | Protection Center |
| 4. Summons | The sheriff, or a warning order attorney, serves you. You have 20 days to respond. | Protection Center |
| 5. Judgment | If you do not respond, the servicer asks for a default judgment. If you file a defense, a commissioner may hold a hearing. The judge decides whether to order the sale. | Protection Center |
| 6. Appraisal and notice | Two disinterested local residents appraise the property under oath. The sale is advertised under Kentucky’s legal-notice rules, about three times in the three weeks before it. | KRS 426.520, 426.560; Protection Center |
| 7. Sale | Public auction run by the commissioner’s office. The opening bid is usually set by the servicer; the highest bidder gets the deed. | Protection Center |
How long does it take?
I found no statutory minimum or maximum. The Protection Center says the time varies from county to county and that servicers usually allow about 90 days before starting proceedings. Its FAQ adds that most servicers start the process after about three missed payments. Because courts differ, treat any single number you read online with caution and ask a lawyer or housing counselor about your county.
Can you get the house back after the sale?
Sometimes. KRS 426.530 gives the defendant a right of redemption only if the property “does not bring two-thirds (2/3) of its appraised value.” In that case the owner may redeem within six months from the day of sale by paying:
- the original purchase price,
- 10% interest per year on it, and
- the purchaser’s reasonable costs after the sale for maintenance and repair, such as utilities, insurance, association fees and taxes.
The money is paid to the court clerk, and the master commissioner then conveys the property back. While the right exists, the purchaser gets an immediate writ of possession and a deed that carries a lien in the owner’s favor.
⚠️ The Protection Center’s page still says the owner has “one year.” The statute in force, as amended in 2016, says six months, and the text of the law controls. If you are facing a sale, get legal advice on your exact deadline.
Deficiency judgments
Yes, the lender can come after you for the shortfall. KRS 426.005 allows a judgment “for the recovery of the debt against the defendant personally” in the same action. The Protection Center confirms that if the property sells for less than is owed, the servicer, or the U.S. Department of Housing and Urban Development for an FHA loan, could seek a deficiency judgment.
Taxes and disclosures in a foreclosure sale
A transfer made under a foreclosure proceeding, or by a deed in lieu of foreclosure, is exempt from Kentucky’s transfer tax (KRS 142.050(7)(j)); see Kentucky transfer tax. Court-supervised foreclosure sales are also outside the seller’s disclosure form requirement; see seller disclosure in Kentucky.
Where to get help
- Kentucky Homeownership Protection Center: free counseling and referrals to Legal Aid, 866-830-7868. Contacting it does not delay or stop a foreclosure that has already been filed. If you have been served, seek a lawyer right away. The Team Kentucky Homeowner Assistance Fund stopped taking applications on June 30, 2025.
- Kentucky Housing Corporation: its Mortgage Assistance page lists options such as forbearance and loan modification and warns about foreclosure scams. See also first-time buyer programs in Kentucky.
- HUD-approved housing counselors: HUD funds free or low-cost counseling. Call (800) 569-4287.
- Your servicer: call as soon as you know a payment will be missed. Do not move out because of a warning letter; the Protection Center says you need not leave until the home belongs to someone else.
Frequently asked questions
Is foreclosure in Kentucky judicial?
Yes. The lender files a lawsuit in circuit court, and the property is sold under the court’s order at a public sale (KRS 426.005; KRS 426.700).
How much notice do I get before a foreclosure sale in Kentucky?
The Protection Center says the notice of sale is posted at or near the property and advertised in the local paper three times in the three weeks before the sale. KRS 426.560 requires newspaper advertising under KRS Chapter 424.
Do I have a right of redemption in Kentucky?
Only if the sale brings less than two-thirds of the appraised value. Then you have six months from the sale to redeem under KRS 426.530.
Can the lender sue me for the rest of the loan?
Yes. The court can enter a personal judgment for the debt along with the order of sale (KRS 426.005).
Do I owe transfer tax on a foreclosure sale?
No. A transfer under a foreclosure proceeding is exempt (KRS 142.050(7)(j)).
Compare with the other states: Foreclosure by state.
More Kentucky guides
- Closing costs in Kentucky: what buyers and sellers pay
- Real estate transfer tax in Kentucky: rate, payer, exemptions
- Kentucky property tax: rates, homestead exemption, appeals
- Seller disclosure requirements in Kentucky (KREC Form 402)
- Do you need a real estate attorney to close in Kentucky?
- Home prices in Kentucky and Louisville: median value and trend
- First-time home buyer programs in Kentucky: KHC and Louisville
- How to verify a real estate license in Kentucky
- Community property and buying a home in Kentucky
Sources
- KRS 426.005, Personal judgment in action to enforce mortgage or lien (Kentucky Legislature) (consulted October 13, 2026)
- KRS 426.520, Appraisal of real property before judicial sale (Kentucky Legislature) (consulted October 13, 2026)
- KRS 426.530, Right of redemption (Kentucky Legislature) (consulted October 13, 2026)
- KRS 426.560, Newspaper advertisement required in judicial sales (Kentucky Legislature) (consulted October 13, 2026)
- KRS 426.700, Time, place and terms of sale (Kentucky Legislature) (consulted October 13, 2026)
- KRS 142.050, Real estate transfer tax, exemptions (Kentucky Legislature) (consulted October 13, 2026)
- About Foreclosure (Kentucky Homeownership Protection Center, Kentucky Housing Corporation) (consulted October 13, 2026)
- Frequently Asked Questions (Kentucky Homeownership Protection Center) (consulted October 13, 2026)
- Mortgage Assistance (Kentucky Housing Corporation) (consulted October 13, 2026)
- How long will it take before I'll face foreclosure if I can't make my mortgage payments? (Consumer Financial Protection Bureau) (consulted October 13, 2026)
- Avoiding Foreclosure (U.S. Department of Housing and Urban Development) (consulted October 13, 2026)