If your house has already been sold at a foreclosure auction, you probably have one urgent question: how long until I have to be out?
In Kentucky, it isn't the next morning. There are still court steps after the sale, and in some cases you still have rights. Here's how it works. This is general information, not legal advice. If you're in foreclosure, talk to an attorney today.
Kentucky foreclosures go through the courts
Kentucky uses judicial foreclosure, which means a judge oversees the whole thing. In Louisville, foreclosure sales are run by the Jefferson Circuit Court's Master Commissioner, an official appointed by the court.
What happens after the auction
The auction is not the last step. Roughly, here's what comes next:
- The court has to confirm the sale. The Master Commissioner reports the sale to the court, and there's a short window for anyone to object.
- After the sale is confirmed and the buyer pays, the buyer receives a deed.
- If you're still in the house, the new owner can ask the court for a writ of possession, an order that lets the sheriff remove the occupants.
How long all of that takes varies with the court's schedule and the buyer. It can be weeks or longer. Don't count on a specific number of days, and don't wait for the sheriff.
The redemption right: sometimes you get six months
Kentucky has a special rule. If your house sold at auction for less than two-thirds of its court-appraised value, you generally have six months to buy it back (called "redeeming" it) by paying the sale price plus interest.
- It only applies when the sale price was under two-thirds of the appraisal
- During that time, the buyer usually can't kick you out
- It's a real option if you can get financing, or sell your redemption right to someone who can
Ask your attorney whether your sale qualifies.
If you're a tenant in a foreclosed house
Federal law (the Protecting Tenants at Foreclosure Act) generally requires the new owner to give legitimate renters at least 90 days' notice before making them leave, and in many cases to honor the rest of the lease. If you rent the home, keep proof of your lease and rent payments.
Better yet: sell before the auction
If the auction hasn't happened yet, you likely still have time to sell the house yourself and keep any equity, instead of letting the auction set the price. A fast cash sale or a short sale can often close before the sale date. Read our pre-foreclosure guide and our short sale guide.
Frequently asked questions
Do I have to leave right after the foreclosure auction in Kentucky?
No. The court still has to confirm the sale and the buyer has to get a deed. Only then can they seek a court order to remove you. Use that time to plan your move.
Can I get my house back after a foreclosure sale in Kentucky?
Possibly. If it sold for less than two-thirds of its appraised value, you generally have six months to redeem it by paying the sale price plus interest.
What happens to extra money if my house sells for more than I owed?
After the loan, costs, and other liens are paid, any leftover money (the "surplus") is generally owed to the former owner. Make sure the court knows how to reach you, and ask your attorney how to claim it.
Will the new owner offer me money to move?
Sometimes. Some buyers offer "cash for keys," a payment to leave by a certain date in good condition. It can be faster and easier for everyone.
Talk to us as early as you can
Call Winner Realty at (502) 305-8915 or book a time. See every hard-situation guide on our Selling in a Tough Spot page.