Legal Question in Real Estate Law in Kentucky

Foreclosure

After a long and drawn out affair with trying to save our home from foreclosure, we finally lost it. It went up for public auction, and no one bid on it. I assume it went back to the bank, the morgage holder. A realestate person showed up at the door asking for a surrender of the keys back in late October, and gave us a time limit to be out. We moved out shortly after that. Just recently, they finally changed the locks on the house. However, we have never gotten any thing in the mail or served to us regarding the outstanding money we owe due to the foreclosure. We have been waiting on the amount we owe the bank regarding the foreclosure so that we can file bankruptsy on it along with all the rest of our outstanding debts. Whats going on with this? Am I missing something here? Is there still another process that we have to go through. What are the next steps? And what should we do next?


Asked on 3/18/04, 1:41 pm

1 Answer from Attorneys
Philip Owens Philip M. Owens, Attorney at Law

Re: Foreclosure

The process in forclosure is this: (1) the bank files suit against you alleging that you owe them money and will set out how much. (2) you are served with papers giving you 20 days to answer, (3)The bank obtains a judgment that will set out how much is due and how much interest. If no interest is set out, legal interest is 12% from judgment. An order is entered that the property is to be sold to pay the judgment (4)the property is appraised (5) the property is sold at public auction. It must bring 2/3 of appraised value (not loan value) or you have a right of redemption for a year. (6) The Commissioner files a report setting out how much the bid was and who the purchaser was. This may be enough to pay the judgment or not (7) A deed is given the purchaser. All of these things will be in the record in the Circuit Clerk's office. Of course the deed will be recorded in the County Clerk's Office. Look at the court record. It will give you who to contact-the attorney for the bank usually. Or you can compute the figures from the documents in the file.

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Answered on 3/18/04, 2:37 pm


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