In Kentucky, lenders dealing with a home loan in default can sue the home owner/borrower in a judicial lawsuit. If the legal requirements are met, a judge can then order the sheriff to sell a Kentucky foreclosure by public auction. Individuals interested in placing bids on and buying forelosed homes in Kentucky must first find out how to locate the foreclosures and auction details. They can then investigate the properties, prepare bidding money and place the highest bid at Kentucky sheriff sales to buy Kentucky foreclosures.
Contact the local sheriff (preferably look for information on the county website) to get Kentucky foreclosure listings and information on qualifying as a bidder at sheriff sales and foreclosure auctions in that county. Each sheriff is responsible for carrying out court orders to sell foreclosed homes in that Kentucky county.
Some county sheriff’s offices may have foreclosure listings online. By statute, listings for Kentucky foreclosure auctions are also supposed to be posted at the courthouse door and in county newspapers. But this is typically the slower, more traditional way of getting information on foreclosed properties. In fact, even if you cannot find foreclosure information on the county website, sheriff’s offices generally have a list of upcoming foreclosed properties that you can either inspect or purchase for a small fee. Of course, the best way to disseminate this information is online, but you will have to check each county to see the current policy on listing Kentucky foreclosure notices.
Look at the listings to find the time, place and date of foreclosure sales. These sheriff sales typically take place at the local county courthouse. Kentucky is also a little different than other state’s foreclosure laws when it comes to evaluating the foreclosed property’s value. Normally, only the amount still due on the loan is released in foreclosure listings. However, there is actually a required appraisal of the fair market value of the property in Kentucky. You can use this information to help you decide whether you want to and how much to bid on a foreclosed home in Kentucky.
Ask the local sheriff (hopefully this is on the county website) how to participate in bidding on Kentucky foreclosures in that county’s sheriff sales. These policies can vary from county to county. Some sheriffs have been known to require a certain deposit just to participate. Others may require a letter of credit or bank statement showing that you are good for the money if you bid on local foreclosures. You also need to know how to complete the sale if you do place the highest bid at the foreclosure auction. The typical policy is to demand full payment at the time of or at least on the same day as the public sale.
Complete the purchase for any foreclosed homes you purchased at auction. In Kentucky, the sheriff must then convey the property to you. What this means is that you need to ask the sheriff’s office for a property deed. Don’t just assume you will receive a deed when buying Kentucky foreclosures. According to the statute, you must demand a conveyance (a deed conveys the property) upon completion of the sale.
Take the deed and file it with the Kentucky recording office in the same county of the foreclosed property. Demand the deed and file it as quickly as possible to best preserve your interest in the Kentucky foreclosed home or land.
Note: The sheriff does not have to deed land to you until the redemption period is over. In some cases, there is a one-year redemption period, which means the home owner has one year to come up with the money and pay off the loan.
Kentucky Statute on Conveyance of Foreclosure By Sheriff to Purchaser