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How does the foreclosure process work in Kentucky?

If you have recently lost your job or suffered some other financial setback, you may be concerned about falling behind in your home mortgage payments. If this happens, the bank may foreclose on your home.

Delinquency of payments

The bank will consider your payment delinquent if it is not received on the due date specified in your loan agreement. Usually, you will start incurring late fees once you are 15 days past due.

Depending on the terms of your loan, your lender could consider you in default if payment has not been made in as little as 30 days. Some agreements allow you to be 60 or even 90 days late before it is considered default.

Once the bank has determined that you are in default, the foreclosure process will begin.

Judicial foreclosures

Kentucky law allows only judicial foreclosures which require a full court proceeding to take place. Your mortgage lender will have to file a formal complaint and you will be given a chance to respond.

If the court decides in the lender's favor, you will have the right to continue to occupy the house until a foreclosure sale has been completed.

If, however, you abandon the property after not making your mortgage payment, the lender is allowed to immediately reclaim the property.

Loss mitigation workout

Unless you have a high-cost mortgage or it is specified in your loan agreement, your lender is not required to attempt any other arrangements, such as loss mitigation, in an attempt to avoid foreclosing.


Kentucky law does not require that your mortgage lender notify you before it files a complaint with the court alleging default on the loan. The only exception to this rule is if your loan agreement specifies that notification must be provided before a claim is filed or if it is a high-cost mortgage.

Acceleration clause

It is very common for loan documents to contain an acceleration clause. If your mortgage agreement contains such a clause, the lender has the right to accelerate the mortgage at the time the complaint is filed. This means that the entire debt, including interest , fees and taxes will be immediately due.

If you have had a change in your financial circumstances that puts you in danger of defaulting your mortgage, it is important to know your rights and options. For advice on a possible foreclosure, contact an attorney experienced with debt settlement.

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Law Office of Ginger C. Cord, PSC
155 E. Main Street
Suite 330
Lexington, KY 40507

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