For those in foreclosure and hoping to redeem their home, listen up. On April 10th of this year, Kentucky‘s General Assembly enacted Senate Bill No. 36, reducing the 1 year redemption period to just 6 months. The new law also makes it more expensive for many to redeem their home. The law took effect July 15, 2014.
The statutory right of redemption may help a family stay in their home after a foreclosure. If a Kentucky homeowner suffers the loss of a home due to foreclosure, and the foreclosure sale brings less than two-thirds of the appraised value of the home, the owner may win the property back by paying the purchase price plus ten percent interest per annum. This right, known as the right of redemption, is codified in the Kentucky statutes as KRS 426.530.
The 2014 amendment limits the period a homeowner may exercise this important right to just 6 months from the sale date. In addition, a homeowner wishing to redeem must now pay costs incurred after the foreclosure sale, such as utility expenses, insurance, association fees, and taxes. The net effect of this amendment impairs the right to redeem a foreclosed home, making it even more important for homeowners not to sit on their rights.
If you are in foreclosure and want to discuss your legal options, call us to see if we can help. Our office exists to help you protect your Kentucky home.