New Kentucky Mortgage License Regulations

[Anh N.]

Hi,

I purchased a second mortgage on a non-primary residence that is in default. I'm hoping to work out a modification with the borrowers to start receiving payments. This is the only loan I own in Kentucky. Balance is less than $50K. I'm an individual real estate investor but use a LLC. I purchase less than four loans/year and do not originate loans. I use a licensed loan servicer to handle notices and collect payments. Am I required to obtain a mortgage license in KY? If I'm not required to have a license, can I still foreclose on the property if the borrowers don't pay? Thanks!

[Dave Melton]

I've never been in second position but I have been in first and can tell you that you don't need a license to foreclose in KY. Just a real estate attorney and plenty of time. Iirc about 6 months to get to sale assuming they aren't military.