Right to redeem for 6 months if the home sells for less than two-thirds of its appraised value
Ky. Rev. Stat. § 426.530(1)–(2)
In plain words
In Kentucky, if your home is sold under a court judgment and brings less than two-thirds of its appraised value, you can redeem it within six months from the sale. You pay the purchase price, 10% yearly interest, and the buyer’s reasonable costs for upkeep, taxes and similar expenses, through the court clerk.
Who is protected
Kentucky defendants whose property sold at a court sale for under two-thirds of appraised value.
When it applies
- Only in Kentucky.
- Only after the foreclosure sale.
What you can do
Put the deadline on your calendar
Compare the sale price with the appraisal in the court file to see whether the right applies.
Deadline: 6 months from the sale date
Open the toolCompare your options
Use the six months to refinance or arrange a purchase of the home back.
Open the tool
Honest limits
- Only applies when the sale price was under two-thirds of the appraised value.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawRight of redemption after court sale
Ky. Rev. Stat. § 426.530(1)–(2)
Exact part: (1)–(2)
What it says: If the property does not bring two-thirds of its appraised value, the defendant may redeem within six months.
Read the official texthttps://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45200
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to answer the foreclosure lawsuit — usually within 20 days
Ky. R. Civ. P. 12.01
Kentucky foreclosures go through court. After you are served, you generally have 20 days to file a written answer and raise defenses. After judgment, the master commissioner has the home appraised and advertises the sale. Free help is available from the Kentucky Homeownership Protection Center.
Read this rightRight to pay a tax certificate before foreclosure, and to redeem after a low court sale
Ky. Rev. Stat. § 134.546(1), (5)
In Kentucky, unpaid property taxes become a certificate of delinquency that a buyer can purchase. The holder must wait at least one year after the taxes became delinquent before suing to foreclose, and you can pay the certificate before the foreclosure sale. If the home is sold in that foreclosure, it is appraised, and the six-month redemption right applies if it sells for under two-thirds of its value.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this right