Randy Saunders and Matt Abee of Nelson Mullins write a full white paper on the Kentucky Sale Process and include a whole section on the foreclosure process. If you want to learn about the details for participating in the lien sales, check out their other interview. This section is specific to the foreclosure process.
After the one-year required “tolling period,” a foreclosure can be filed for a tax delinquency. The tolling period is one year from the time the delinquency was filed with the county which would be January 1 of each year. Filing for foreclosure is done by lawsuit, which is considered a judicial foreclosure process. Here are details to that process:
- A foreclosure lawsuit must be filed between 1 year and 11 years from the date the delinquency was filed.
- The certificate purchaser must send the taxpayer a notice 45 days before filing the action and it is only required to notice the owner on file of the property.
- A payment/installment plan must be attempted with the taxpayer first.
- Once all steps are taken, the Master Commissioner will appraise the property and set a time for the foreclosure sale.
- If a property does not sell for more than ⅔ of its appraised value, then the taxpayer has an additional opportunity to redeem the property within six months of that sale.
- The certificate purchaser can bid at the foreclosure sale and if appraised value is met, etc then the purchaser will become the owner of the property.
It’s important to understand all the nuances to the foreclosure process in Kentucky. We recommend you also watch the interview on the sale process. For all the details concerning the Kentucky delinquency collection process including the handling of Over the Counter liens, check out Matt Abee and Randy Saunders’ white paper.