Legal Question in Real Estate Law in Kentucky

Re: Deficiency Judgment Question

In order to give you some prospective on your problem, I have to start somewhere near the beginning-law school basics. There are two types of cases-"in rem" and "in persona". An "In Rem" action is one where the court has jurisdiction over a thing, for example real estate subject to a mortgage. "In Persona" means the court has jurisdiction over the person. In Ky there is no forclosure in the true legal sense. What happens in KY is that the note and mortgage are treated in the same fashion as a contract and are "enforced" by filing a lawsuit. In order to get a personal judgment against a person, that person must be personally served with notice that the lawsuit has been commenced and furnished with a copy of it. This is done either by personal service from an official such as the local Sheriff, by certified mail with a return receipt or in a lot of cases by the authorized person simply leaving a copy of the summons at your place of residence. You have a certain number of days to answer or judgment may be granted against you personally. An action to enforce a note (personal) and a mortgage (property security) has elements of both types of action. If you cannot be "personally served" as provided in the Civil Rules of Procedure (these are rules the Courts must adhere to)a sale of the property can, after other steps are taken, be held but no defiency judgment can be taken. If you are served, then you are liable for any difference owing after the proceeds of sale are applied. There may be things you can do, but you need to seek local counsel who can personally review the matter and properly advise you in light of the facts that I do not have at my disposal.