Legal Question in Real Estate Law in Kentucky

Re: forclosuer

If you own the second mortgage on the home, you should get notice of any foreclosure action. In fact, you will likely be made a party to any action. That way, you will be able to assert your rights in the property. If, for some reason, you are not made a party to the action, you need to be aware of when the action is filed and ask the court to intervene so you can protect your interest in the property.

Re: forclosuer

In Kentucky when a mortgage is enforced by filing suit, all lienholders must be joined as a party. If they are not, then the lien/mortgage is still against the property. Hopefully your mortgage is recorded. If not, RECORD IT. If you are served a summons ( by the sheriff or by mail) you must answer within the time period specified on the summons. If you don't then your mortgage may be dismissed. If the obligations are not paid by the debtor, then the court will order the property sold to satisfy the mortgages and liens. What happens as a practical matter is that the junior lienholder (you) may have to "buy out" the first mortgage holder to protect your investment.