Kentucky Tax Lien Sales:
Kentucky tax lien sales usually start in August. Liens are sold to the party who first offers to pay cash in the full amount of the outstanding tax bill. Prior lien (or bill) owners have first right to buy. Penalty is accrued at 1% per month.
Each county publishes a list of properties to be sold at the tax sale, no less than 15 days prior to the sale. All lists are published in a newspaper of general circulation in that particular county. In addition the sheriff shall mail a letter to the property owner not less than 12 days prior to the sale. A redemption period per se is not stated in the statute. The lien buyer can take no action for one year but must take action within either six or ten years (the statutes give two periods of time).
The owner or occupant of any real property sold for taxes can redeem the lien. Also any person having a lien there upon or interest therein the property may redeem. There is no perfection of interest in the normal sense; the bill buyer is entitled to bring a civil action against the owner for the amount owed and foreclose on any asset, including the property. Exemptions for homestead are available if the property owner is 65 and totally disabled.
Kentucky is not really a tax lien state nor is it a deed state. You end up with a civil claim against the property owner, which can be collected like any other debt, including the forced sale of his property. The tax lists give no information about the underlying property, only giving a “bill” number, the owner’s name and the amount owed. There are no assignment purchases available from the counties.
For upcoming Kentucky tax sale lists go to http://www.taxsalelists.com.
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