State Foreclosure Law

Kentucky Foreclosure Laws

Kentucky is a judicial foreclosure state with a $5,000 homestead exemption. All foreclosures go through Circuit Court, where a Master Commissioner -- not a sheriff -- conducts the sale after judgment.

Process

Judicial

Through the court system §

Foreclosure Length

Varies

Depends on the case

Homestead Exemption

$5,000

Automatic: no advance filing; before an execution sale, the part the owner selects is valued and set apart by two disinterested housekeepers · the rule §

Deficiency Judgment

Allowed

Allowed §

38 source pages cited · Last checked Mar 10, 2026

Not legal advice. This page provides general information about Kentucky foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — readers should confirm current statute text and consult a Kentucky-licensed attorney for situation-specific advice.

Facing foreclosure? The timeline, your rights and your options are laid out in the Kentucky foreclosure guide →

On this page

01 Governing statutes
02 Foreclosure process and your rights
03 Special foreclosure types
04 Lien priority
05 Statute of limitations
06 Probate & inheritance
07 Consumer protection & compliance
08 Legal aid & pro bono resources
09 Find help in Kentucky
10 National foreclosure guides
11 Kentucky distress data

Governing Statutes

Citation	Title	Covers
KRS 426.005 et seq.	Foreclosure of Mortgages — Circuit Court Action	Primary framework for judicial mortgage foreclosure. Requires the lender to file in Circuit Court. Covers court-ordered sale, Master Commissioner appointment, advertisement, and distribution of sale proceeds.
KRS 426.010	Execution on a Personal Money Judgment	When a court enters a final personal judgment for a set sum of money, such as a judgment against the borrower for the debt, an execution against the debtor's property can issue on it.
KRS 426.560 et seq.	Advertisement and Conduct of Commissioner's Sale	Governs advertisement and conduct of the Master Commissioner's sale. Requires newspaper publication for a specified period and sale at the courthouse or other public location. Establishes bidding and sale confirmation procedures.
KRS 426.530	Right of Redemption	Gives the defendant and his or her representatives a right to redeem real property sold under a court judgment or order (other than an execution) within 6 months after the sale, but only if the sale did not bring two-thirds of the appraised value. Redemption requires the purchase price plus 10% yearly interest and the buyer's reasonable post-sale maintenance and repair costs.
KRS 427.060	Homestead Exemption	Homestead exemption of $5,000. Does not protect against foreclosure of a mortgage the owner gave on the home or against purchase money owed on it, and does not apply to a debt that existed before the home was bought or the improvements were built.
KRS 426.005 (deficiency provisions)	Deficiency Judgment Procedure	In an action to enforce a mortgage, the court can enter judgment both for the sale of the property and for the recovery of the debt against the borrower personally. After the commissioner's sale is confirmed and proceeds are applied, the lender may pursue a deficiency judgment for any remaining balance.

Kentucky Foreclosure Process and Your Rights

Kentucky uses judicial foreclosure. State law does not set one typical length from the first notice to the sale. §

After the sale: 6 months from the day of the sale, but only if the court-ordered sale brought less than two-thirds of the property's appraised value (KRS 426.530). When this right exists, the buyer still gets immediate possession and a deed that carries a lien reflecting your right to redeem. §
Homestead exemption: $5,000 (KRS 427.060). Does not protect against foreclosure of a mortgage the owner gave on the home, or against purchase money still owed on it, and does not apply to a debt that existed before the home was bought or the improvements were built. The federal bankruptcy exemption for a home ($31,575 in cases filed on or after April 1, 2025) is far higher. §
Mediation: Kentucky does not have a statewide foreclosure mediation program.

Step-by-step timeline, your rights at each stage, mediation, options to keep or leave the home, and what happens after the sale: Read the full Kentucky foreclosure guide →

Special Foreclosure Types in Kentucky

Beyond the standard judicial foreclosure process, Kentucky law addresses several specialized foreclosure categories.

HOA & Condo Association Foreclosure

A condominium association's lien for assessments can be foreclosed in the same way as a mortgage on real estate (KRS 381.9193). §

The lien does not take priority over a mortgage on the unit recorded before the assessment became delinquent.

Tax Lien Foreclosure

Property tax liens have priority over mortgage liens in Kentucky. §

Collection follows statewide rules: a third-party purchaser of a certificate of delinquency must notify the delinquent taxpayer within 50 days after buying it and again every six months until the pre-suit notice is sent, by certified mail with a copy to each mortgagee, and must send that pre-suit notice at least 45 days before filing suit (KRS 134.490).

Lien Priority in Kentucky

Generally first in time, first in right. Kentucky recording statutes govern lien priority.

Consult a local attorney for specific lien priority questions.

Statute of Limitations in Kentucky

Mortgage Foreclosure

Varies §

An action on a written contract must be started within 15 years after the claim first accrued, but an action on a written contract executed after July 15, 2014, must be started within 10 years unless another statute provides otherwise (KRS 413.090(2); KRS 413.160). A suit to enforce a note payable at a definite time must be started within six years after its due date or accelerated due date (KRS 355.3-118). Which limit applies to a foreclosure depends on the loan documents and when they were signed; consult a local attorney.

Written Contracts

Varies §

15 years for written contracts executed on or before July 15, 2014 (KRS 413.090(2)); 10 years for written contracts executed after July 15, 2014, unless another statute provides otherwise (KRS 413.160).

Promissory Note

6 years §

Applies to a note payable at a definite time: suit must be filed within six years after the due date, or after the accelerated due date if the loan was accelerated.

Deficiency Judgment

Varies §

In a Kentucky foreclosure case, the court can enter a personal judgment for the debt along with the order of sale (KRS 426.005). A money judgment becomes a lien on the debtor's real estate in any county where the creditor files a notice of judgment lien; a judgment lien created on or after June 29, 2023, expires 10 years after the final judgment was entered, unless its expiration is postponed as KRS 426.720 allows. Consult a local attorney.

Probate & Inheritance in Kentucky

When a mortgaged property owner dies, foreclosure proceedings interact with the probate process. Kentucky law establishes specific rules for estate notification, heir protections, and the rights of executors to cure defaults.

Pause When the Borrower Dies

State law doesn't pause a foreclosure when the borrower dies, so it can go on during probate.

Notification to Estate

The lender must notify the estate or personal representative before proceeding.

Foreclosure must be served on the estate or personal representative of a deceased borrower.

Heir Protections

Heirs who inherit and occupy the property as a primary residence may qualify as successors in interest under 12 CFR 1024.31 and apply for loss mitigation.

Executor Reinstatement Rights

No specific statutory right for executors to reinstate.

Garn-St. Germain Act

Due-on-sale clause may not be enforced against heirs inheriting and occupying the property as a primary residence under Garn-St Germain, 12 U.S.C. 1701j-3.

Uniform Partition of Heirs Property Act (UPHPA)

Not adopted in this state.

Consumer Protection & Compliance in Kentucky

State consumer protection statutes, foreclosure rescue fraud laws, and professional compliance rules that apply to mortgage servicing and foreclosure-related services in Kentucky.

UDAP Statute

Kentucky Consumer Protection Act

Kentucky consumer protection statute applies to deceptive mortgage practices and foreclosure rescue fraud.

Foreclosure Rescue Fraud Laws

General consumer protection laws apply to foreclosure rescue fraud in Kentucky.

Federal FTC Act and CFPB enforcement also apply.

Attorney Advertising Rules

Kentucky Rules of Professional Conduct govern attorney advertising and solicitation.

Lead Generation Restrictions

No Kentucky-specific lead generation statute for foreclosure defense identified beyond professional conduct rules.

Barratry

Barratry statutes apply. Solicitation of foreclosure-related legal work is restricted.

Kentucky professional conduct rules prohibit in-person solicitation of prospective clients in vulnerable circumstances.

Legal Aid & Pro Bono Resources in Kentucky

⚖

Legal Aid of the Bluegrass

Free legal services for low-income Kentuckians, including foreclosure defense.
lablaw.org →
⚖

Kentucky Legal Aid

Housing and consumer law assistance for income-eligible residents.
klaid.org →
🏠

HUD-Approved Housing Counselors

Free, federally funded housing counseling agencies in Kentucky. Services include loan modification applications, mediation preparation, and loss mitigation guidance.
Find a counselor in Kentucky →
📞

HUD Housing Counseling Hotline

Free foreclosure prevention counseling.
1-800-569-4287 →
📞

Kentucky Attorney General Consumer Protection

Report mortgage fraud and consumer protection issues.
1-888-432-9257 →
📋

Kentucky Bar Association Lawyer Referral

State bar lawyer referral service.
kybar.org →

Find Help in Kentucky

We maintain a verified directory of free and low-cost help providers in Kentucky. All are government-approved or federally funded.

20 HUD-approved housing counselors Free foreclosure prevention counseling 4 Legal aid offices Free legal representation for qualifying homeowners 43 Credit counseling agencies DOJ-approved pre-bankruptcy credit counseling 47 Debtor education providers Required post-filing debtor education courses

Browse all 114 providers in Kentucky →

National Foreclosure Guides

These guides explain foreclosure at the federal level — homeowner rights, available options, and recommended steps at each stage. They apply in every state, including Kentucky.

Facing Foreclosure?

Overview of the process, available options, and free help resources

How to Stop Foreclosure

Immediate options — forbearance, modification, legal aid, bankruptcy

Your Rights in Foreclosure

Federal protections under CFPB Regulation X and loss mitigation rules

How Foreclosure Works

Stage-by-stage walkthrough from missed payments to sale

Behind on Your Mortgage?

Options for borrowers who have missed or expect to miss a payment

Bankruptcy & Foreclosure

How Chapter 7 and Chapter 13 can stop or delay foreclosure

Kentucky Distress Data

The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to Kentucky homeowners:

Foreclosure Filings

National trend

National foreclosure filings. Kentucky mainly uses judicial foreclosure (through the courts).

FHA mortgage delinquency

FHA delinquency rate

Share of FHA loans at least one payment behind, from the Mortgage Bankers Association's quarterly survey.

Foreclosure volume

Foreclosure starts & completions

Monthly foreclosure starts and completions from ATTOM Data Solutions.

Newly late mortgages

Current to 30 days late

Share of mortgages moving from current to 30 days past due, from Cotality (formerly CoreLogic).