State Guide · Kentucky

Selling a commercial loan in Kentucky

Kentucky is a judicial foreclosure state. Foreclosure is judicial — commonly around 6 to 12+ months from complaint through the master commissioner's sale and confirmation, varying by county docket. A six-month redemption right arises only if the property sells for less than two-thirds of its court-appraised value; a sale at or above that threshold leaves no post-sale redemption on commercial property. Because a lender absorbs carrying cost and risk for that entire period, a cash note sale today often beats carrying the credit through foreclosure.

Process

Foreclosure in Kentucky

After judgment, the circuit court's master commissioner appraises and auctions the property, and the redemption price is the sale price plus 10% per annum. Lenders typically credit-bid at least two-thirds of the appraisal specifically to extinguish the redemption right and deliver clean title; deficiency judgments are available.

Compare the foreclosure path to a cash sale with the loan-sale-vs-foreclosure calculator, using the timeline above.

Selling the note instead

A note sale transfers the loan to a buyer for cash, removing the timeline, the legal cost, and the risk of ending up as the owner of the property. Standing Bid Capital is a direct principal buyer of CRE loans, discounted payoffs, and REO — $250K–$25M, all-cash, no re-trade, confidential. Request a confidential review.

Common questions
How long does commercial foreclosure take in Kentucky?

Foreclosure is judicial — commonly around 6 to 12+ months from complaint through the master commissioner's sale and confirmation, varying by county docket. Timelines vary with the property, court or trustee schedule, and any borrower defenses; confirm with local counsel.

Can I sell a Kentucky commercial loan that is in foreclosure?

Yes — a note can be sold at any stage; the buyer steps into the lender's position and continues or resolves the process. Send the current legal status with the loan tape.

Who buys commercial loans secured by Kentucky property?

Standing Bid Capital buys nationwide, directly and all-cash, $250K–$25M. Request a confidential review.

Request a confidential review →