In Kentucky, lenders generally resort to a judicial lawsuit to foreclose on real estate. For example, if a Lexington home goes into foreclosure, the judge may order the sheriff to auction off the Lexington foreclosure. Those interested in purchasing these foreclosed homes in Lexington need to first find the foreclosed properties. They can then bid to buy them at Lexington-area sheriff sales.
Find Lexington foreclosure listings. Places you can look for these foreclosure notices include Lexington-area newspapers and the courthouse door. This is easy if you have a subscription to local papers or live or work near the Fayette County Courthouse. You can also call the Fayette County Sheriff at 859-252-1771 to get more information on the posting of Lexington foreclosure notices. According to Kentucky law, the notices are supposed to appear for 15 days.
Find out the location of the properties and the time, date and place of each property’s Lexington foreclosure auction. In Kentucky, the auctions are to be held on the steps of the county courthouse. Therefore, expect to be going to the Fayette County Courthouse to participate in Lexington sheriff sales.
When using the listings to get information, make sure you learn how to participate in each foreclosure sale. You may wish to first call the sheriff (see number above) to get generic information on how to bid on and buy Lexington foreclosed properties.
Preferably, you should also visit each property to make sure there are no obvious red flags (such as serious damage, pollution, etc.) that may lower the value of the home or cause problems with the local government. Set a maximum bid on each property that is lower than its fair market value.
Bid on properties at the sheriff sale and complete your Lexington foreclosure purchase by paying the bid according to the payment instructions. Now, you need to demand deed from the Fayette County Sheriff once the sale is completed.
File the property deed received from the sheriff and file it in the Fayette County recorder’s office. Filing a deed is necessary to protect your new interest in any Lexington foreclosed homes that you buy at the sheriff sales.
Note: You are not entitled to a deed until the end of the foreclosure redemption period, which can be up to one year. When there is a redemption period, that generally means you have no right to access the property during that time. Be careful and ask an attorney for advice if you are confronted with a redemption period.
Kentucky Statute on Conveyance of Foreclosure By Sheriff to Purchaser