After a Kentucky court enters a judgment in favor of the lender in a foreclosure action, what is the next step in the Kentucky foreclosure process?
Correct Answer
D) The sheriff conducts a public sale of the property, and the proceeds are used to satisfy the judgment
Under KRS Chapter 426, after a court enters a foreclosure judgment in Kentucky, the property is sold at a sheriff's sale (public auction conducted by the county sheriff). The proceeds from the sheriff's sale are applied to satisfy the court judgment, including the outstanding loan balance, court costs, and attorney's fees. Any surplus goes to the mortgagor; any deficiency may result in a deficiency judgment against the borrower.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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