Foreclosure Homes Louisville KY
In Kentucky the primary way to foreclose a house or mortgage is through the court. The typical time line for property auctions to take place is 6 months. The court need not involve itself in case the property has been abandoned, and in this case the lender can directly repossess the property.
The lender files a lis pendens or a notice of pending auction with the court. After the court authorizes the lis pendens, the foreclosure can formally start. Seized real estate properties or seized homes are usually bought by people looking to buy homes for cheap. However, the catch in the whole process is that if nobody buys these seized properties, a real estate company would eventually buy it and sell it at a much higher price in the regular property market. In the process, they may also make some modifications to the existing property and sell it for a huge profit. This type of market is called the REO or Real Estate Owned.
Before the notice of sale is acted upon, the borrower is given a time line of 20 days to respond to the court order. In case the borrower does not respond, the court will make a ruling decision in favor of the lender. A foreclosure date is also set and the lender is asked to go ahead with the arrangements.
However, the borrower can use all the time until the date of the auction to stop the auction and reclaim the property. Before the auction takes place, the court also gets the property appraised so that complete justice to the property is done by auctioning it for the right price. The excess amount after clearing all the dues and liens is given to the borrower always. The whole idea of the appraisal however is not to sell it in a competitive market, because sometimes when the mortgage balance is low or the amount owed by the borrower is less , the court cannot decide how much the house or the property should be sold at. At these times the appraised amount is taken into consideration.
Also, the reason for appraisal of the property is that if the sale price happens to be less than two-thirds of the amount that the property has been appraised for, the borrower has the complete right to reclaim the property, who is paying the sale price along with the interest.
These are some facts about auctions in Kentucky:
The redemption period for the property is one year after the sale, and the borrower can come back at any time to reclaim the property. The auction is held by a person called the master commissioner, who is appointed by the court to carry out the sale. In case the auction has to be postponed, the court passes the order and also the court should be intimated in advance about the postponement. Last minute postponement may typically not happen here. The borrower has a time line of 15 months to reclaim the property totally.
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