FREQUENTLY ASKED QUESTIONS
Potential bidders should review the following FAQs prior to bidding and remember that the time to investigate and perform due diligence is before the sale, not after.
Potential bidders should consult an attorney before bidding at the sale.
Is there a list of pending foreclosure cases or of upcoming sales?
Answer: NO
There is no list of pending cases or of upcoming sales other than those shown on the link UPCOMING SALES. When a property is referred to the commissioner's office for sale, the property is appraised and a sale date is assigned; then it is posted to the website. In addition, the sale is advertised in the Sentinel Echo not less than 7 days nor more than 21 days prior to the sale date.
Can I purchase the property before the sale?
Answer: YES, but only the owner(s) can sell.
The lien holder or mortgage company who brought the action do not own or have title to the property and as such does not have the authority to sell it.
Cash or Credit?
Answer: NOT LESS THAN 10% DOWN IS REQUIRED AT THE TIME OF THE SALE. CHECKS ONLY!
The purchaser must pay at least 10% of the final bid amount on the day of sale, but may elect to pay the full amount. If less than the full amount is paid on the date of sale, the full balance must be paid within 30 days of the sale. If the purchaser elects to pay less than the full price on the day of sale, they must sign a bond and provide surety at the time of sale. The bond shall bear interest at the rate the Judgment bears, from the date of the sale until paid, and shall have the force and effect of a Judgment. KRS 426.705
Can I see or inspect the property before the sale?
Answer: MAYBE
The owner(s) or the occupants of the property are the only persons able to give permission to prospective bidders, but they are under no obligation to do so. If you can get permission or entry from them, then you may inspect the property, but the commissioner's office cannot assist in this process.
Master Commissioner's sales are "BUYER BEWARE" sales. The property is sold "AS IS" "WHERE IS." The condition of the property is not warranted by the Court, by the Master Commissioner, or by the Plaintiff.
If you bid on property, you should have done your due diligence before you bid, not after!
What does the amount to be raised mean?
Answer: THE AMOUNT DUE THE PLAINTIFF OR OTHER JUDGMENT HOLDERS.
This is the amount of any debt owed to the party seeking to satisfy their judgment debt and may or may not have anything to do with the value of the property. Nor is it necessary that the property sell for that amount. Regardless of the purchase price, all liens or claims of the parties involved in the lawsuit will be satisfied and released when the deed passes to the purchaser. Taxes are paid as noted in the answer below.
Must the property bring a certain amount?
Answer: NO
Prior to the sale, the commissioner is required to have two qualified persons appraise the property. Should the successful bid be less than (2/3) of that appraisal, the owner(s) of the property have six (6) months in which to reclaim or redeem the property by paying into court the bid amount plus an additional 10% per annum interest and any reasonable costs incurred. Please refer to KRS 426.530 for additional information. Upon such payment, and the Circuit Court's approval, the commissioner will convey the property to the former owner(s), their successors, or assigns.
Can sales be cancelled?
Answer: YES, and frequently are!
For a host of reasons, sales are often cancelled, sometimes at the last minute. As soon as the Commissioner's office is notified of the cancellation, this website will be updated accordingly.
Will I receive clear title?
Answer: IT DEPENDS.
The commissioner's office does not warrant or guarantee in any manner that the title is free and clear of encumbrances or defect. However, the purchaser or their attorney has 10 days after the sale to ascertain whether such conditions exist and to file their objections with the Court. If there are any such encumbrances or defects that cannot be resolved within a timely manner, the purchaser may ask that the sale be set aside and the purchase money refunded. Within that 10 day period a purchaser is strongly advised to seek the advice of an attorney regarding a title examination.
Who pays the property taxes?
Answer: IT DEPENDS.
The purchaser shall be required to assume and pay all taxes or assessments upon the property for the current fiscal tax year and all subsequent years. All other delinquent taxes or assessments upon the property for prior tax years shall be paid from the sale proceeds IF properly claimed in writing and filed of record by the purchaser, as explained above.
When will I receive a deed and possession of the property?
Answer: Within five (5) business days after the sale is confirmed by the Court.
After the sale, the commissioner will report the outcome of the sale to the Court. If no objections to the sale are filed, the Court will usually confirm the sale at the next regularly scheduled motion day which typically occur monthly.
Even though the purchaser may not have received a Deed to the property, the purchaser has an equitable and insurable interest in the property and are urged to immediately secure an insurance policy on the property for its full value.
What if someone is living on the property?
Answer: IT DEPENDS.
In most cases, the residents voluntarily leave before a deed is given to the successful bidder. Should they then refuse to vacate, the purchaser will need to obtain an Order from the Circuit Court ordering them to vacate.
What do "bond" and "surety" mean?
The law requires that any purchaser who, at the time of sale, pays less than the full amount of the sucessful bid must sign a "bond" (on a form supplied by the commissioner) to pay the balance and provide surety for that bond.
A surety may either be a person, bank, or other entity who agrees unconditionally to pay the balance due should the purchaser, for whatever reason, fail to pay in full within 30 days.
Most prospective bidders and purchasers, prior to the sale, make arrangements with a bank for the issuance of an unconditional and irrevocable official Letter of Credit (which serves as "surety") which is then provided to the commissioner on the date of sale. Please note that a loan commitment will NOT be sufficient, only a Letter or Credit from a bank will suffice.
Other person(s) or entities, who are Kentucky residents, may also act as sureties, but only if they are present at the time of sale and prepared to furnish to the commissioner a sworn financial statement (on a form supplied by the commissioner) which shows a net worth of at least 2 1/2 times the sale price. If a married individual intends to act as surety, their spouse must also sign. Despite the net worth shown, the commissioner has the right and discretion to reject any proposed surety for any reason.
Should a purchaser fail to furnish a surety, the commissioner will report that failure to the Court for appropriate action. This may include a resale of the property and judgment against the original purchaser for any difference in resale value, as well as the court costs incurred as a result of the resale.
If you plan on bidding on one or more sales, please download, complete, and have ready the Purchaser Info Sheet at the conclusion of the sale.
PURCHASER INFO SHEET