A Kentucky borrower has defaulted on her home mortgage. The lender has filed a foreclosure lawsuit, and the court has scheduled a sheriff's sale. Before the sheriff's sale takes place, the borrower wins the lottery and wants to save her home. What right does Kentucky law recognize that would allow her to stop the foreclosure by paying the full amount owed?
Correct Answer
D) Equitable right of redemption, which allows the borrower to pay off the debt and stop foreclosure before the sale
Kentucky recognizes the equitable right of redemption, which is the borrower's right to redeem (save) the property by paying the full amount owed — including principal, interest, fees, and costs — before the foreclosure sale (sheriff's sale) is completed. This right exists in equity and allows a defaulting borrower to stop the foreclosure process at any point prior to the sale by satisfying the debt in full.
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