Which of the following is NOT a characteristic of Kentucky's judicial foreclosure process under KRS Chapter 426?
Correct Answer
D) The lender may exercise a power-of-sale clause to conduct a non-judicial sale
Option D is NOT a characteristic of Kentucky's judicial foreclosure process because Kentucky does not allow non-judicial foreclosure or power-of-sale clauses. Kentucky requires all foreclosures to proceed through the court system under KRS Chapter 426. There is no power-of-sale mechanism available to lenders in Kentucky, regardless of any language in the mortgage document.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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