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While these amendments to advertising rules do much to standardize practice throughout all of Kentucky’ 120 counties, and may reduce advertising costs, because of the shortened timeframes, the amendments may create challenges for mortgage servicers in getting bidding instructions to their counsel on a timely basis.
Our firm will be working with each of the master commissioners, and our clients, to ensure that adequate notice is provided.
Prior to the auction itself, the master commissioner must also see that the sale is advertised by publication at least once between seven and 21 days before the date of the sale.
The advertisement must include the time, place and terms of the sale; a reference to the case number in which the applicable judgment and order of sale was entered; and a description of the property to be sold that includes only the street address (or a description of its location, if there is no street address) and the parcel or property identification number.
Lastly, the master commissioner’s report of sale must be filed no later than three business days after the sale.
Foreclosure plaintiffs, whose judgments the judicial sales are held to enforce, may bid on credit up to their judgment amount in lieu of paying cash or posting a surety bond at the time of sale.
If that audit uncovers evidence of recurring irregularities, the Chief Justice can now refer the master commissioner to the judges of the local circuit court for potential removal.
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By Richard Nielson In an effort to create a more uniform process in judicial foreclosure sales, the Kentucky Administrative Office of the Courts has amended the Rules of Administrative Procedure that govern the role and duties of the master commissioners of the circuit court.
The changes, effective as of January 1, 2016, and codified in Supreme Court of Kentucky Order 2015-25, apply to all cases and proceedings referred to the master commissioner of the circuit court.