Right to pay a tax certificate before foreclosure, and to redeem after a low court sale
Ky. Rev. Stat. § 134.546(1), (5)
In plain words
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.
Who is protected
Owners of Kentucky property with delinquent-tax certificates.
When it applies
- Only in Kentucky.
- Only if you are behind on property taxes.
What you can do
Get property-tax help
Ask the county clerk who holds your certificate and how much it takes to pay it off.
Deadline: Before the foreclosure sale
Open the tool
Honest limits
- Interest, fees and attorney costs can be added to the certificate.
- 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 lawForeclosure of certificates of delinquency
Ky. Rev. Stat. § 134.546(1), (5)
Exact part: (1), (5)
What it says: No suit before one year after delinquency; a foreclosure sale is appraised and carries the § 426.530 redemption right.
Read the official texthttps://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28449
Court cases
- Homeowner wonSame topicTyler v. Hennepin County
Tyler v. Hennepin County, 598 U.S. 631 (2023)
a government that sells a home for unpaid taxes and keeps the value beyond the tax debt takes property without just compensation
- Homeowner wonSame topicHall v. Meisner
Hall v. Meisner, 51 F.4th 185 (6th Cir. 2022)
a homeowner's equity in property taken for a smaller tax debt is protected property, and taking it without compensation states a federal takings claim
- Homeowner wonSame topicJones v. Flowers
Jones v. Flowers, 547 U.S. 220 (2006)
when mailed notice of a tax sale is returned undelivered, the government must take additional reasonable steps to notify the owner before selling the property
- Homeowner wonSame topicMennonite Board of Missions v. Adams
Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (1983)
a person with a recorded interest in property is entitled to notice by mail or equally reliable means before a tax sale, and publication or posting alone is not enough
- Homeowner lostSame topicPung v. Isabella County
Pung v. Isabella County, No. 25-95, slip op. (U.S. June 23, 2026)
after a fairly conducted tax sale, the government owes the former owner the surplus from the sale price, not the property's fair market value
Related rights
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 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.
Read this rightThe right to real notice before the government takes or sells your home
U.S. Const. amend. XIV, § 1Due Process Clause
Before a state or county sells your property — for example at a tax sale, or through a court foreclosure — the Constitution requires notice that is reasonably likely to actually reach you. If the government knows your address, publishing a notice in the newspaper is not enough. If a mailed notice comes back unclaimed, the government must take extra reasonable steps to reach you, if it practicably can.
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 rightFair handling of your escrow account
12 C.F.R. § 1024.17(c)(1)
If your servicer collects money for taxes and insurance (escrow), it must pay those bills on time as long as you are not more than 30 days behind. It must review the account every year and send you a statement. It cannot keep more than a small cushion (one-sixth of a year's payments), and it must refund a surplus of $50 or more within 30 days of the review. When you pay off the loan, it must return what is left within 20 business days.
Read this right